I’ve based my business model on the foundation of what I’ve called Purposeful Planning. It seems like a redundant phrase, doesn’t it? It’s not. There’s a difference between planning something, and constructing that plan with a very well defined purpose in mind.
The first step is knowing exactly where you are now.
When talking with my clients I use the metaphor of a journey to describe retirement planning. If you as an investor want to get from here to there, what should you do first? If you don’t define very clearly exactly where ‘here’ is, getting ‘there’ could become almost impossible.
Not knowing exactly where you are as you begin your journey toward retirement is almost a guarantee of mediocre results at best, and failure at worst.
Think of a driving vacation. You’re starting from home. Your ultimate destination is 1,000 miles away. You plan on fishing in several different lakes in many areas, so you’re taking your new boat with you. Do you take the big SUV, or the family mini-van? Do you allow three days for the entire trip, or a couple weeks? Are you camping along the way or staying with someone? Do you know what route you’re taking? Is it the scenic route, or are you more interested in getting your line in the water quickly?
Now think about your retirement.
Where are you now — financially? How much is your annual family income? What equity do you have in your home? Have you invested in the stock market? What cash savings do you have? Do you have money in an IRA or 401(k)? Have you already invested in a small income property, but haven’t done anything since you bought it? Has it appreciated in value much? Is your job relatively stable? Will you be making more in five years? When do you want to retire? How much income is enough in your perfect scenario?
Once you know exactly where you are now, what’s next?
Constructing a Purposeful Plan.
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About BawldGuy
“How much income is enough in your perfect scenario?”
Funny you should ask. My husband often says, “You can always spend more”.
My kinda guy Cher.
The cost of homes for sale is now on the decline. Buyers go out and negotiate.
And water is wet, grass is green, and you should eat your veggies.