Retirement Planner – Retirement Planning: The Amazingly Simple 5Ws (and 1H) Formula

Are you, like countless millions of others, so-called “planning your retirement” i.e. crossing your fingers and hoping your nest egg will provide for you during your golden years but really not sure if it will?

Whether you’re 35 or 55, don’t fool yourself into thinking that building a nest egg and dreaming of walking off into some kind of ‘retirement sunset’ is retirement planning, it’s not.

Check out this amazingly simple and helpful 5Ws (and 1 H) formula of retirement planning.

The 5Ws (and 1H) Formula of Retirement Planning

The 5Ws (and 1H) retirement planning formula will allow you to start formulating a “who, what, when, where, how and why” mental picture and corresponding plan of action for your retirement.

1. Who – Who are you going to spend your retirement with?
2. What – What is the minimum monthly income you will need to cover your likely expenses?
3. When – At what age would you ideally like to retire?
4. Where – Where are you going to spend your retirement?
5. Why – Why do you want to retire anyway?
6. How – How will you generate income during your retirement?

Read More about The Retirement Planning 5Ws (and 1H) Formula...

Having Something to Retire To
Don't simply retire from something; have something to retire to. In addition to planning your retirement income you must also plan your retirement activities...Read More

Retire from Work, But not from Life!

Retirement doesn’t have to mean you have to spend the remainder of your days on the golf course and nights as preferred babysitter to your grandchildren! How

If you’re serious about retirement planning then why not sign up NOW for more insider secrets on Retirement Planning at www.MillionaireMindsetSecrets.com for FREE. In addition, you’ll discover more about how to build wealth and income using clever savings and investment strategies at www.MillionaireMindsetSecrets.com for FREE.

Retirement Planner – Cat Food or Cavier?!

In my previous posts I reviewed the need for a good retirement planning as well as the different retirement planners and options. To continue my thoughts, today I will be reviewing the different standards of retirement income e.g. having retirement plan is not the end of the work, making sure that retirement plan will be adequate to your needs in your late years is what matters more.

Cat Food or Caviar!?

A standard employer-sponsored retirement savings plan such as a 401(k) is the mainstay in most financial retirement plans.

Individuals can utilize a standard IRA or Roth IRA also. Many self-employed people opt for a Self-Directed 401(k). Relying on a standard retirement savings plans will prove unsatisfactory as it generally will fall way short of your retirement income needs. However, faced with a choice of having a standard retirement savings plan (e.g. a 401(k), standard and non-standard IRAs etc.) versus having no retirement savings plan at all, I would definitely prefer to have even a standard 10% of my earnings invested in standard retirement plan than in nothing at all. If nothing else it’s a good habit to “save and invest” a % of your income. However, unless you are putting away large chunks of cash into your retirement plan, it alone is probably not going to give you more than a lower-middle class lifestyle during your retirement.

Typically, if your retirement income needs are modest, social security benefits may provide 20-30% of your retirement income whilst employee-sponsored retirement plans may provide 20%. Therefore, it is your personal savings and investment strategies that will be the key differentiators between you living off cat food or caviar!

If you’re serious about retirement planning then why not sign up NOW for more insider secrets on Retirement Planning at http://www.MillionaireMindsetSecrets.com for FREE. In addition, you’ll discover more about how to build wealth and income using clever savings and investment strategies at www.MillionaireMindsetSecrets.com for FREE.

Related Posts:

Retirement Planner – Don’t Plan Your Retirement Until Your Read This First!

Retirement Planner – No Job, No Stress, No Pay!

Debt Reduction - Amazing Little Known Secrets about Eliminating Debt

For many people their job-description becomes their self-description and so when they retire from work they can feel worthless and wither away fast. To cap things off, many retirees at 65 die within 2 years of retiring. Jeez, what an anti-climax! It’s no wonder people don’t bother planning their retirement!

No Job, No Stress, No Pay!

A popular rule-of-thumb claims you need roughly 70% of your pre-retirement income (90% if you wish to maintain your pre-retirement standard of living). Work-related expenses will decrease whilst health care, leisure-related expenses increase. This assumes you’re in relatively good health and medical care costs are modest. If your health is poor your health care expenses will escalate.

Financial security during retirement is probably priority no. 1 for most people. To live securely and comfortably in retirement for many people means at the very least generating sufficient income passively by means of some retirement savings plan or other financial assets to allow them to live according to their usual standard of living.

There are 4 typical sources of retirement income:

• Social security benefits
• Employer-sponsored retirement plans
• Post-retirement employment income
• Personal savings and investments

Whilst you may be diligently putting away for your retirement, the real challenge is to know your retirement income needs way before you ever want to retire. Try one on the many retirement income calculators available online to work this out.

When calculating the expenses you will have in retirement, keep in mind that they are in today's dollars. To get a better idea of what they will be when you are ready to retire, you should adjust them for inflation. A current income need of $20,000 per year adjusted by 4% inflation year on year translates to a requirement of $43,800 per year 20 years later.

If you’re serious about retirement planning then why not sign up NOW for more insider secrets on Retirement Planning at http://www.MillionaireMindsetSecrets.com for FREE. In addition, you’ll discover more about how to build wealth and income using clever savings and investment strategies at www.MillionaireMindsetSecrets.com for FREE.

To the readers: What is your preferred retirement plan? Share in the comments below

Related Posts:

Retirement Planner – Don’t Plan Your Retirement Until Your Read This First!

Retirement Planner – Cat Food or Cavier?!

Retirement Planner – Don’t Plan Your Retirement Until Your Read This First!

No one disagrees that retirement planning is a good thing yet many people fail to take time to plan. If there is a retirement plan in place, it has often been left till the last minute, maybe even just a few years before retirement. This article offers an outlook on retirement planning that may shock some of you.

If you love doing what you’re doing you’ll most likely never want to retire. It’s often said that most of the wealthiest people in the world still work in their own companies not because they have to but because they want to and enjoy it. However, I bet you they all have retirement plans folded away neatly in their back pockets.

Retirement Planner - No Job, No Stress, No Pay!
Financial security during retirement is probably priority no. 1 for most people...Read More in my next post

Retirement Planner - Cat Food or Caviar!?
Relying on a standard retirement savings plans will prove unsatisfactory as it generally will fall way short of your retirement income needs. However... Read More in my next post

P.S. If you’re serious about retirement planning then why not sign up NOW for more insider secrets on Retirement Planning at www.MillionaireMindsetSecrets.com for FREE.

In addition, you’ll discover more about how to build wealth and income using clever savings and investment strategies at www.MillionaireMindsetSecrets.com for FREE.

To the readers: What is your preferred retirement plan? Share in the comments below :)

Property Investing Secrets - Leverage

The leverage you get when owning a property is one of the 5 features that make property investing the IDEAL investment.

IDEAL is an acronym for the 5 main features of property investing that make it so attractive to investors worldwide:

• Income
  
• Depreciation
  
• Equity Build Up & Expenses
  
• Appreciation
  
• Leverage

In my previous posts I reviewed the first four features (see above), today I want to discuss the Leverage which an investment property can be for you so that you can increase your ability to borrow more money for future investments.

Property Investing - Leverage

Leverage is the principle of using a small amount of your own money to control a large value asset. One of the unique aspects of real estate over other investment classes is your ability to borrow up to 80% or 90% of the purchase price of the asset. This is leverage i.e. using Other People’s Money (OPM).

If you’re serious about property investing then why not sign up NOW for more insider secrets on Investing in Property. You’ll discover more about how to build wealth using real estate investing and other wealth building strategies atwww.MillionaireMindsetSecrets.com for FREE.

Related Posts:

Property Investing Secrets – Why Property is the IDEAL Investment

The IDEAL Investment – Property Investing Income

The IDEAL Investment – Property Investing Depreciation

The Ideal Investment – Equity Build Up & Expenses

Property Investing Secrets – Appreciation

Property Investing Secrets - Appreciation

Why property investing is considered the IDEAL investment?

IDEAL is an acronym for the 5 main features of property investing that make it so attractive to investors worldwide: Income, Depreciation, Equity Build Up & Expenses, Appreciation, Leverage.

In my previous posts I reviewed the first two of the 5 features that make property investing the IDEAL investment: Property Income, Property Depreciation and Equity Build Up & Expenses

Property Investing - Appreciation

Your asset should appreciate in value over time. Often the largest part of a return on an investment in real estate is in the appreciation in the value of the asset and the resultant gain in equity.

Property prices can sometimes reduce in the short term due to changes in demand, access to finance, etc. but over the long-term you will benefit from appreciation.

If you’re serious about property investing then why not sign up NOW for more insider secrets on Investing in Property. You’ll discover more about how to build wealth using real estate investing and other wealth building strategies at www.MillionaireMindsetSecrets.com for FREE

Related Posts:

Property Investing Secrets – Why Property is the IDEAL Investment

The IDEAL Investment – Property Investing Income

The IDEAL Investment – Property Investing Depreciation

The Ideal Investment - Equity Build Up & Expenses

Property Investing - Equity Build Up & Expenses

IDEAL is an acronym for the 5 main features of property investing that make it so attractive to investors worldwide: Income, Depreciation, Equity Build Up & Expenses, Appreciation, Leverage.

In my previous posts I reviewed the first two of the 5 features that make property investing the IDEAL investment: Property Income & Property Depreciation.

Today I want to talk about Equity Build Up & Expenses.

Property Investing - Equity Build Up & Expenses

As you pay down the principle of the mortgage loan you are gradually building up your equity stake in the property. So, even if there is no increase in the value of the property over the term of the loan you still end up with an asset with 100% equity at the end of the mortgage loan term.

Expenses such as property management fees, maintenance, insurance, mortgage interest etc., are deductible from the rental income, thereby reducing your tax liability.

If you’re serious about property investing then why not sign up NOW for more insider secrets on Investing in Property. You’ll discover more about how to build wealth using real estate investing and other wealth building strategies at http://www.MillionaireMindsetSecrets.com for FREE

The IDEAL Investment – Property Investing Depreciation

Property Investing Secrets: Depreciation

In my previous posts I started explaining why property investing is widely considered the IDEAL investment, IDEAL standning for the 5 main features of property investing that make it so attractive to investors worldwide.

In the last post I spoke if I for Income, today's post is about D for Depreciation.

A rental home is seen as a depreciable asset just like a car or piece of factory machinery. Rental properties with positive cash flow can show an accounting loss, granting the owner a tax deduction, or, as Robert Kiyosaki calls it, “Phantom Cash Flow”.

Depreciation is an accounting loss and only shows up on paper.

It can result in you being able to turn a small economic profit into a small tax loss. So, even though you could be “loosing” money on paper you could actually be making a monthly cash profit.

The building value (Purchase price - Land Value = Building Value) of residential property is usually depreciated over 27.5 years. Commercial property is usually depreciated over 39 years.

If you’re serious about property investing then why not sign up NOW for more insider secrets on Investing in Property. You’ll discover more about how to build wealth using real estate investing and other wealth building strategies atwww.MillionaireMindsetSecrets.com for FREE.

The IDEAL Investment - Property Investing Income

As a young investor you may be more focused on the rise in capital value; whereas someone in their golden years can be more focused on generating income. Property is one asset class that does both, rising in value and generating income. It is often referred to as the “IDEAL” investment.

“IDEAL” is a simple acronym that highlights just some of the key benefits of owning real estate:

Property Investing: Income

One of the key benefits of property investment over many types of investments is its inherent ability to generate passive income. When investing in property the key thing is to focus on net income. Many real estate agents will quote gross yield figures i.e. the annual rent as a percentage of the property price. Whilst this is a reasonable indicator of your potential return on investment, I prefer to focus on net yield or net income. You absolutely must have net positive cash-flow otherwise you haven’t got an investment on your hands but a burdensome liability. The challenge in property investment is to minimise the down payment (which will maximise your mortgage) whilst at the same time generating positive cash flow each month.

If you’re serious about property investing then why not sign up NOW for more insider secrets on Investing in Property. You’ll discover more about how to build wealth using real estate investing and other wealth building strategies at www.MillionaireMindsetSecrets.com for FREE.

To the readers: Do you get a good net income from your property investment? What are the main things to consider when investing in a property? Looking forward to your comments!