I’ve got to say in all honesty, that I’ve had a pretty good life (some great, some good, some bad and some not so good).
I’ve managed to travel the globe (having lived in Hong Kong, walked the street markets of Beijing, walked the Great Wall of China and gambled in Macau), but at 40 years old I had absolutely no preparation being old, or more importantly being old for a long time!
We should start off with acknowledging that what retirement is.
It is basically when you are old enough to get old age security from the government I guess.
As an entrepreneur I never even thought that I would qualify for this, but I do surprisingly.
Of course you claim it in your income taxes and if you exceed $60,000 in income they then “claw it back“.
I think it would be best to just not give it to me but they don’t go for that.
The one thing I can tell you is that you won’t be carrying a mortgage into retirement with you.
You will have to “downsize” if you still have a mortgage, unless you have assets that you can sell.
And if you are like me you have no company pension to look forward to either!
I actually like the “every man for himself” freedom that we have here in Canada, but it can be a harsh reality when you don’t have assets or your home paid for when it is time to retire.
My biggest fear is actually achieving my goal of 100 years old but not being healthy on the way.
It’s a big challenge to retire financially comfortable and physically in good health.
I have a followed a continued plan specific to both because without both, you are in big trouble!
So, how’s your financial planning going?
How’s your health plan and physical conditioning?
Most people my age are in terrible physical shape, taking tons of chemical medications (which I think destroys your cells and health from the inside out), eating processed foods, many smoking cigarette after cigarette (a total baffling habit in my perspective) drinking booze, and generally accelerating their “sign off date” at amazing speed!
The Broadbent Institute studying Canadian seniors has shown that “not only are we living longer, we are saving less! Among those age 55 to 64 without access to a company pension, about half have less than half of what they’d need to pay their bills. A staggering 32 per cent have less than $1,000 in retirement savings“.
Say what!?!
“One out of three Canadians have less than $1,000 in retirement savings“!!!
And “job hopping in the Millennial era” introduces an entirely different playing field where you kiss off the gold watch from the company at retirement.
Job hopping leads to no corporate pensions.
Thanks to a booming real estate market since 2000, I’ve managed to salvage my flawed retirement strategy (no strategy is a strategy) gotten my house (pun intended) in order.
I see people trying to retire but with a mortgage and it simply does not work.
You cannot enter retirement if you have debt . . . period!
That means car loan, credit card, student loan . . . . . you have got to be debt free or the math simply does not work.
So, you had better start early.
My last minute strategy was to “own my own home and have it fully paid for” plus at least one “paid for income property” delivering sufficient annual positive revenue to cover all my day to day living expenses.
Let the “appreciation” on the two properties will take care of itself and live off of the income from the rental.
Oh, I know this is not earth shattering like all those headlines for courses that you see on the Internet, but this strategy is a no-brainer.
Now, you’ve got to calculate how much time you have between today and the day you want to retire and that’s how long you’ve got to achieve your goal.
The magic really is in ridding yourself of “interest payments” (credit card, vehicle, mortgage, etc.).
A mortgage on the “income property” works because you get to write-off the interest and have your tenant pay for it.
But debt-free is the ultimate goal and it’s up to you to conceptualize how you intend to achieve this goal.
I fully intend to see 100 years of age.
I attend the gym every morning.
I’m on a very regimented diet of organic only food (and I eat like royalty thanks to a very talented and creative wife).
I don’t consumer alcohol or cigarettes, nor do I eat processed foods, sugars of any kind, chemical preservatives, sodium or granulated anything!
Some might say that I live an overly regulated life, but I would challenge the theory as flawed logic.
I wouldn’t care to be old and sick.
So, old and healthy is the “only game in town for me“.
I hope that you will take a few minutes to reflect on your life strategy today and identify the odds of you being able to retire based on your present way of approaching things.
I can tell you first hand it all starts with getting rid of “Interest Payments“!
I’m Charles
