Are you going to depend on your children for providence?
Do you have any desires or dreams to establish a charitable foundation or contribute to donations?
Retiree – Know Your Resources And Have A Good Start
Retirement need not be determined by age. I have seen so many in advanced age groups who are caught unprepared for their golden years. On the other hand, there are many who are in the young and middle-aged groups who have already achieved financial independence. The key to this is to have a plan and formula for success. I am quite fortunate to belong to the latter because I want to and not because I have to.
“No one plans to be poor in old age, but many just do not make plans to be.”
All good things must have continuation and I truly believe in that. It took me years to build my wealth and I do not want my children or anyone else to destroy what I have taken a lifetime to achieve.
As part of my prudent stewardship strategy, I have committed myself to mentoring my children and acting as a trustee to help them learn, grow and be equipped to handle greater wealth in the future.
Each of us – every one of us, has but one life to live; one chance to leave behind a legacy for the many generations to follow. I want to leave behind a trail of footprints for my children to follow, examples to emulate and giving them a head-start to build their future from.
What will be yours?
To be on schedule and ready yourself for D-day, I go back to the basics and follow my 5-Step Strategy closely and diligently:
1. Have a Specific Plan
2. Identify my current resources
3. Establish my distribution and succession plans
4. Conduct a bi-annual periodic review
5. Restructure my IGAs
Just to share a little snippet of my financial game plan for retirement. I desire to have:
1. An income of $10,000 every month, growing at 5% per annum
2. And maintain my standard of living
3. Additional IGAs that are able to generate $8,000 passive income every month
4. Be financially independent in terms of financial capital as well as medical risk management
or is there a missing LINK?
In order to retire comfortably, I will need to achieve the following by age 50:
As long as I can have a regular stream of income of $10,000 per month, a portfolio of IGAs that generates an estimated return of 8% per annum, a fully-paid home and a portfolio of medical risk management program, I would consider myself as having achieved my desired lifetime financial goals. Life is like a marathon. When you have completed your lap, it is time to pass on the baton to the generation after – no matter which you are, how successful you may be and whichever level you are at in the society.
In passing on the baton to your next generation and your successors, you have a few considerations to ponder over:
1. Who will your successors be?
2. Are they prepared to take over the fort?
3. What will they take over?
4. What are they supposed to do with the roles they have taken over?
5. Do you have a master plan to guide them in managing wealth to create a legacy?
6. What have you done to prepare them for stewardship responsibility?
7. Have you established a form of family office to manage relationships, wealth and resources, that have been passed on to them?
Once all the above aspects have been considered, you will then be able to allocate your resources and invest your time and energy in nurturing your successors.
“Finding or having a journey is two different thing; I have a journey with a Purpose within the purpose.”