What to Think About Retirement – Jerry Fetta
What Do You Need to Consider Before You Can Retire
Retirement. The moment you can stop working and begin enjoying your freedom. I refer to this as financial freedom, because I do not agree with the connotations surround retirement and how it is done, but ultimately we all desire freedom. We want to not be obligated to a job for our survival. If you’ve followed me for any length of time, you’ll know that it is my belief that you must create wealth to retire or to be financially free. I often meet with people who are nearing retirement and I help them plan to make sure their money is right and that their numbers make sense. Today I want to share with you the things you must consider before you can retire.
#1: What is my standard of living? How much income do you live on now? Do you want your lifestyle to get better or stay the same? The answers to these questions will dictate what goal we set for our income. Let’s say you live on $6,000/mo now and you’d like to be able to have some extra money to travel and live. Let’s add another $2,000/mo. You need your investments to produce $8,000/mo in “take-home” income so that you can enjoy this lifestyle.
#2: Taxes. You will need to earn more money than you think you do to really bring home $8,000/mo. Think about it, you will have to pay taxes. Not just taxes to the government, but taxes to your investments. What do I mean by that? You must create indestructible wealth. The way you do that is you have your investments produce 40% more income than you think you’ll need. That income can be saved aside and reinvested so that your investments are acquiring more investments. In addition to that 40% you will still pay taxes. Let’s say those are going to be 25% when it is all said and done. So that means you need your full income, plus an extra 65%. Instead of $8,000/mo you will actually need $22,858/mo. After saving 40% and paying taxes you’ll have $8,000/mo left over.
#3: Set targets. How many years from now would you like to achieve this? Is it 10 years? 15? Is it 20? How long do you want to wait. Realize, the shorter the time frame, the more activity it will take. The longer the time frame, the more comfortable it will feel. Let’s say you picked 10 years. Well we can’t just set the goal and expect it to happen. We need targets. For a 10 year goal we need a 1 year target, a 3 year target, and a 5 year target. We need to set expectations on how much our investments will produce per month at each of those checkpoints. This is how we gauge our progress.
#4: Invest for income. Now it will be great to have this amount of income each month, but it won’t be great if you run out of money. It’s important to actually project how long your assets will last. If you have to liquidate assets to produce the income, you are playing a dangerous game. Your best bet is to invest in things that produce their own intrinsic income and do not need to be sold. This ensures that you can keep the income steadily flowing and you will not have to worry about going broke.
This is the type of service that I provide for my clients. We aren’t focused on anything but the numbers and creating indestructible wealth. If you are nearing the stage of your life where you’d like to retire and you want to make sure you do more than just “live below your means” for the next 30 years of your life, click here and my team will provide a free analysis for you.
Own Your Potential,
Grant Cardone Certified Coach
Jerry Fetta helps his clients build wealth so that they can eradicate poverty in their own lives and own their potential.
He believes scarcity and abundance cannot co-exist and that the way to end poverty is to help you build wealth.
You were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.
However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.
Jerry helps his clients create wealth that exchanges time and money on their behalf. The only way to do this is to make more money, keep it, and then multiply it.
He has helped clients double their income, save $100,000 tax-free, and secure 8-12% fixed annual returns on their assets.
To get started, go to www.WealthDynamX.com/contact