Friday, October 16, 2020 / 02:40AM /Grace Agada /HeaderImage Credit: Global

Financial rest and peaceof mind is critical in Retirement and there are two key elements that willdetermine how fast you run out of money. These two elements are the keys tolasting financial success. The first element is Income and the second elementis Savings. Income is the element that brings money into your Life.  Andsavings is the element that keeps money in your life. And it is also the seedfor Financial Independence. Yet millions of people every year give savings theleast attention during their active career years. It is as though they forgetthat their saving is what they will depend on in retirement. These people spendtheir lives working hard for other people and do little on their savings. Theyend up struggling in retirement. If you want to experience a restful retirementyou must keep big portions of your income as savings for yourself. And do soearly enough so you can gain financial freedom and help other people. So howmany people do it this way? Only a few. The majority of people prepare forretirement in the exact opposite way. They focus their resources and attentionon other people and work on projects that last as long as their active careeryears. Only to run out of time and money when they are ready to focus onthemselves. It is the abandonment of savings until later that makes retirementa dreadful experience for many people. 

So, what canyou do? The answer is it depends.

It depends on where youare right now, how hungry you are for success, and whether you are ready totake immediate action. But regardless of where you are right now or what youchoose to do today, know that millions of people have gone ahead of you. And atleast 95% of them have lost their high-quality life in retirement. They havedescended from a prestigious life to a life of financial pain scrambling for ameager monthly stipend. If you do not want to end up this way you must brace upfor success and create the kind of life you desire in retirement.  Almostall success story that I know started when someone reached that point of enoughis enough. So maybe right now is your enough moment. 

There arethree things you can do to never worry about money in Retirement again.

The First thing is toreplace your retirement income. While your job can retire your income mustnever retire. The second is to identify and focus on the 20% action that willmake a dramatic difference in your retirement life. And the third is to findthe money you need to fund your dream retirement life. Below I explain each ofthese points.

First, you must replaceyour retiring income with a non-retiring income. And there are two kinds ofincome that do not retire. The First is Investment Income and the secondis Business Income. Replacing your retiring income with an investment orbusiness income is important because the major difference between you today andyou in retirement is the absence of a high active income. If you replace thisincome with a non-retiring income you will have a smooth transition intoretirement.  Unfortunately, the majority of people only have their pensionincome to depend on. The income from pension is less than 20% of your currentsalary and depending on pension means crashing the quality of your life to fitinto a small budget in retirement. In addition, since pension as of today doesnot last for a lifetime you are likely to run out of money if you live longerthan the pension managers envisaged.  If you are lucky to have a few otherinvestments to depend on you must make sure these investments mimic some of thecharacteristics of your current active income. They must be stable, consistent,regular, and difficult to lose. The key to success in retirement is to findways to replace your retiring income and to do it in such a way that gives youpeace of mind.

The second thing you mustdo is focus on the 20% action that will give you peace and independence thefastest. There are three areas to focus on if you want to experience a blissfulretirement. The First area is Income. You need both short-term incomesecurity and Lifetime income security. Short-term income security will takecare of your needs and emergencies and long-term income security will sustainyou for life.  The second thing you need is a residential home ofyour own or some sort of rental provision that does not stress you. One of thebiggest capital expenses that frustrates most people is rent. The sooner youtake care of this expense the more stable and stress-free your retirement willbe. The Third area is Health. Health crises can destroy any amount ofwealth. And it is in fact the biggest destroyer of wealth. Knowing what to doto heal your body, stay healthy, fit, and productive is critical for success inretirement.

And finally, the thirdthing you must do is find the money to fund your dream retirement Life. It israre that you find a person who already has all they need for retirement. Oftenfour things are in short supply for most people. First is Time. Mostpeople are already out of time and must find ways to achieve their retirementgoals within the limited time that they have. The second is Money. Moneyis always in short supply for most people and they must find ways to generatemore income for themselves. The Third is relationships. Some moneyproblems can be easily and quickly solved with the right relationships. Mostpeople lack the kind of relationships that will take them to the next level.The fourth and final thing is Business Skills.

Shifting from employee toBusiness owner requires growth in three key areas. First is the ability tosolve problems with little resources. The second is the ability to inspire andconvince people to give you money in exchange for your goods and servicesespecially when you are not known or popular. And do so at zero or little cost.The third is the ability to find, initiate, and nurture the criticalrelationships you need to move to the next level in your financial life. Thesethree skills are critical if you must succeed in life and business.

Retirement is acontinuation of life and not the end of the good life. You have invested yourwhole life making the lives of other people work. It is time to make your ownlife work and enjoy a blissful retirement. To learn more you can reach out toGrace Agada via [email protected]  

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