DEFINITION OF RETIREMENT
Retirement, according to the dictionary, is to “withdraw from one’s position or occupation or from active working life.” You can achieve retirement when you have sources of income that do not have to be earned by working. Retirement and the term “financial independence” are often used interchangeably; how will you know that you don’t need to work ever again if you don’t keep track of your finances?
RETIREMENT DOESN’T NEED TO BE OLD AGE
Many have a wrong idea of retirement; retirement is nothing more then a choice that we have when the alarm clock rings; 1. WAKE UP and rush to work or 2. Go back to sleep and enjoy the moment as you have a choice. We say, we are retired is simply means our passive income have replaced our current earned income.
WHAT IS A SCORECARD?
KEY TAKEAWAYS
- Start by investing 1000 and see how long can you convert the 1000 to 2000
- From 2000 and see how long you can convert 2000 to 4000 and etc
Once you progress each stage; you will enjoy your journey with clear direction to your goal. Few things you need to take into considerations;
- Where will you invest to double your money?
- What kind of return are you looking at?
- What kind of risk are your prepared to engage in?
THE RULE OF THE GAME WHEN YOU ARE OLD
H = Home fully paid; why? The financial market always have a cycle and is good to keep your home as a collateral when the opportunities comes.
S = Ensure you have a savings account that when emergencies strikes you have something to lean on temporarily
IGA = Income Generating Assets – which provides passive income which is moving in-line with inflation and cost of living
AS = Acquired Skills – Skills that you have could be used when you are old as a hobby that also gives some basic income to have fun with.
The question now is; ARE YOU READY TO ESTABLISH A SCORECARD AND ENJOY THE JOURNEY?
Article by: Ashok – MBA – Strategic Coach & Mentor for MDRT/COT/TOT
