Yesterday we were being interviewed on a Facebook Live by Morgan de Klerk of Master Your Finances Today for her private community of self employed professionals (we’ll share that at a later date) talking about the different options that they should be considering prior to their retirement (and why it’s important to begin saving and also generate other income streams as early as possible)
We’re not financial advisors so you will need to make your own decision on what we’re sharing here but our personal experience says to us that retiring the old way is a thing of the past
Robert Kiyosaki of Rich Dad Poor Dad fame thinks the same and has this to say :-
“There are two ways to think about retirement…
The traditional way and the Rich Dad way. Traditionally, most financial planners, experts, spokespeople, and journalists plan on two things happening upon your retirement:
1. You will have a fixed amount of money to live off of that earns you a small amount of interest, and;
2. You will have a lower standard of living during retirement than when you were working. This is due to the loss of a salary or paycheck and rising medical expenses as you age.
The Rich Dad philosophy does not make those assumptions.
Instead, we assume…
1. You have passive income coming in every month that equals or exceeds your living expenses – forever! In other words, you never have to worry about running out of money once you retire or stop working, and;
2. Your standard of living remains the same or, in many cases, increases. I can’t imagine a more horrible money problem than being 60, 70, 80, or 90 years old and knowing you are just about out of money.
Reaching your own financial heaven
Following the traditional thinking on retirement is a kind of financial hell.
No one wants to get to retirement and have to worry about whether they will have enough money to live the life they want to.
It is financial hell to work hard all your life…
Only to have to cut back your standard of living as inflation, taxes, and healthcare costs eat away at your hard-earned retirement money.
Instead, based on our definition of wealth, we advocate for planning and reaching your financial heaven.
You do this by understanding your infinite wealth goal
What do you need financially to live the life you want without having to worry about money?
And what do you need financially to make enough cash flow through assets to cover your living expenses as you want them to be, not as they need to be?
Reaching your financial heaven requires determining your infinite wealth goal and aspiring towards your dream
And then acquiring and applying the knowledge to achieve it”
Now we would agree entirely with what Robert says in many respects but when we talk with our clients we ask them three very important questions because we’re not financial advisors and we like to look at it in a very different way based on our own experience
After all our retirement should be some of the best years of your life (not the worst) so retirement planning in our book should be done like this
What would I like to do?
Where would I like to do it?
How can I make it happen?
We actually cover this in our book which you can download for free here
Hope this article Can You Retire The Traditional Way has given you food for thought and if you want to chat it through with us you can find all our contact details right here
We will however reiterate that we are not financial advisors and we highly recommend you speak to one before making any investment for your retirement so that it’s based on an acceptable risk for you
Chris and Susan
CEO’s : Lifestyle Business Solutions LLC
Retirement Lifestyle Podcasters & CoachesAuthors : The Mindset Shift, Ultimate Retirement Lifestyle, Goal Setting Success Secrets
Co-Authors : Retire Inspire