Retirement - a planned strategy

RETIREMENT MONEY MANTRA

Let's imagine there are two guys - Let's call them John & Bill.

John has a plan that says that at the age of 55, he will accumulate enough ASSETS (net of debt) to produce an annual income of $70,000 so that the money never runs out & keeps up with the rising cost of living. #Money #Business #Savings #Investments #Retirement #CostofLiving #Bills

To achieve this objective, John only needs an annualized return of 8% on his investments.

Bill on the other hand, has NO PLAN. He has a random "investment" that supposedly generates a 300% return in a haphazard way. Due to Bills unplanned & sporadic approach to his future, Bill runs out of money at the age of 71.

'Does it matter if John only gets a 8% return?'

Moral of the story: in the world of money the best question is NOT how much return can I get?

Rather, the best question is what do I need to do to have enough money each year, so my money never runs out & keeps up with the cost of living.

- Ron Malhotra

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