I’ll do that when I retire…

Today, most people are in denial about their financial situation. They put off travelling, their hobbies, spending time with their family, etc. They’ll do that when they retire is their motto. They are also sold on the concept that when they retire, they will only need about 60% of what they are making now because their expenses such as mortgage and business costs will be eliminated. What they are not make a connection with is that travelling, hobbies and such will probably cost more at a time when their income will drop.

Living on 60% of what was not usually adequate in the first place means that they will be spending retirement sitting at home, watching TV and counting their pennies as they watch their fixed income eaten up by inflation, increased health care costs and higher gas costs.

To retire, you need income. The retirement savings plans are sold as being able to replace your income when you retire. Unfortunately, living off savings sets up a race to see which gives out first, you or your savings.

Having your own business that provides residual income allows you to retire at any time. You can enjoy things while you are still young and healthy enough to enjoy them. You have time freedom to do what you want to do, when you want to do it.

My business is also an asset that I can will the income to my sons which allows me to help even when I’m not there.

The bottom line is that if you want to do things when you retire, residual income is the real answer.