I know, this may seem far off in the future for you. Time has a way of getting past us quickly, and honestly, it takes some time, decisions, and actions to ensure that you have the LIFESTYLE you want, when you retire.
One of our business partners was lucky enough to retire from his company at 33.
How did he do this you may ask?
He took a measured risk, put in a lot of hard work, had good timing, and was able to sell his business for a significant gain after over 10 years. Even so, about 8 years after he retired, he wanted to find a new challenge. He is now 48, earning a significant income monthly, and travelling the world to help others. Not in the same industry as he was in at 24. He does not need to work, but he loves what he does.
Statistically only 36% of men, and 29% of women over the age of 50 are confident that they can RETIRE with the LIFESTYLE they want.
70% of Canadians find it difficult to save.
These statistics apply to a lot of countries.
As a banker for the past 20 years, I have seen budgets and assets for most of my clients be stretched thin. And this is not just due to poor judgement and spending habits. It is also due to salaries and the basic cost of living. I see many clients with no savings, little saved for retirement, and no budget room to save towards this. They are 300$ away from bankruptcy per month.
What about the responsibility of your company or state/country/province?
Companies now prefer to hire people under contract in certain industries, and do not need to set up pension plans. Funds in governmental plans have shrunk due to risk and market vulnerabilities. Or have grown at a smaller pace than the number of recipients about to cash in. Some countries offer no pension plan at at all.
Do you really want to risk your LIFESTYLE based on the decisions of a bureaucrat who is looking to save money for their company?
What about if your company fails? Will the small government pension be enough to support you, assuming there is one when you retire?
Do you want to have to still be working at 70, maybe doing something to help pay the bills, but not with a PASSION?
I recommend meeting with a Financial Planner, often offered for free by Financial Institutions, to see if you are on the path to the Financial Freedom that you have imagined in retirement.
If you do not have the budget, or are not on the right path, there is no time like the present to step up and start to make decisions to change the direction that you are headed in.
One option could be to start a side business. To create a residual income: to help to pay the bills, obtain your goals, and maybe help you to retire in comfort at 33. Taking control of when you retire, what your LIFESTYLE at retirement is, and doing something that you are passionate about.
You can do this on a part-time basis, while you still work with your employer. It takes longer to build up this residual income this way than if you work at it full-time, but now you are taking control. Your office can be where you are. And if you love this career, you get to retire when you want too.
If you want change, you have to make change.