OK, so I want to retire, sooner rather than later. Hey, how about we put some of that workplace training into effect here? If it???s good enough to run multi-million dollar projects for the company (not that I did any of those), then it???s good enough to use towards planning for retirement. Come to think of it, given that I???d like to retire on somewhere my current income, let???s say $100k in rough terms, and I need the income to keep up with inflation, I???m going to need a slush fund of somewhere around 2 million dollars to do it.
Huh? Did you just say $2M? Uh, yeah, I did! I???m told that in the English language, two negatives usually make a positive, but two positives never make a negative. Hmm, how about, ???Yeah, right!???
So, what was all that management stuff again? Oh yeah, planning, targets, goals, ??? Alright, let???s start with a goal. Is it in fact the $2m in the bank, or it is access to $100k indexed to inflation? Which is easier to achieve?
Then all the other questions come up. What???s the time frame? What are the constraints? What???s realistic and achievable? When do I start? What do I need to do to get there?
- Time frame: Is 10 years enough? 20 years perhaps? How about if we plan for 10 and allow for 20?
- Constraints: Bound to be some. How about we wing it on that for a while & see how it pans out?
- Realistic and achievable: Well, if someone can explain the plan to me in considerable detail, sufficient for me to fully understand it, then maybe it is achievable.
- Start: Sooner rather than later would be good.
- How to get there: I???m sure there are many scenarios. Let???s look at just one.
About 9 years ago, someone told me that I could retire in 10 years if I went about it the right way. I told them to prove it. Fortunately, they did. ???10 properties in 10 years, and retire by borrowing against the capital growth???, they said. Huh? Let???s just analyse that one for a moment. Where you have capital growth, you have as good as, or better than, the inflation rate. Aha! Indexed to inflation. Maybe we don???t need the $2M after all.
For more on that, you’ll need to go here.
