Now that I've got your attention on the subject matter, let me go over what is meant by the Conventional Financial Planning first. I'm throwing away all the financial jargon here and try to explain it as simple as I possibly can. The Conventional Financial Planning is the normal and the well-accepted route of Financial Planning process. Simply put, the process begins by first determining the kind of post retirement life that you want - which is your retirement goals and objectives and from there determine the amount of your nest egg. This nest egg is your source of income during your retirement life and from which you withdraw a fix amount monthly to suite your intended lifestyle. These monthly withdrawals should cover all your monthly living expenses for the duration of your expected retirement life. As an example lets say that you are an average male American of 65 and you have just retired. From the statistic available, a 65-year-old American man today has a life expectancy of 16.4-years, has about 50/50 chance of living to 85 and a 25% chance of still being around at 91(please refer to my previous posting on Life Expectancy and Retirement). That means you might live another 15 - 30 years after quitting work. To be on the safe side however, you have to at least plan on living for another 30 years and factor that into your Normal Retirement Planning.
For the sake of simplicity however, it is the accepted norm that you will require 70% - 80% of your pre-retirement income to enjoy the same lifestyle - post retirement. It would however be prudent to exceed this norm a little bit as my research revealed that though you'll incur less expenses for some e.g. no more commuting to and from work, you'll likely incur more on health and medical expenses. Also you'll need to set aside some unexpected and emergency expenses as well as some capital expenditure that you'll undertake. It could be a house or car purchase or whatever that will be.
Having decided how you want to live your retirement life and figuring out the amount of nest egg that will make it possible, the next obvious step is to determine how are you going to achieve that goals and objectives. You do this by determining the assets you have and how much your current income exceed your current expenses and save or invest a predetermined portion of that surpluses into your retirement nest egg. The long and short of the process is that you can use a number of ways or a combination of savings and investment vehicles to achieve your goals of achieving the required retirement nest egg. You may have to adjust down your expenses here if you find your current surpluses is short of what you need to save or invest every month. And Now that is what I call the conventional way to Retirement Planning.
Now instead of the Conventional Retirement Planning already mentioned, there's another way to do it. The unconventional way is in using empowering information and implementing certain strategies to achieve financial abundance and independence that you desire. This could be your shortcut to your dream retirement life. I won't go into details what the info and strategies are as you can download and get all the 10 strategies outlined in this special report from my blog here for you to judge it for yourself. You can get your FREE report here. Let me warn you that the information in this special report is so powerful and potentially life-changing that if implemented correctly will enable you retire early. This special report is valued at $97 retail but you can GET IT FREE by clicking on the golden key above. And for those who are already retired or about to retire you may find this unconventional retirement planning especially appealing to you. Here's the link again to get that special report for free. Click here.
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