Retirement Options: The Traditional Way or the RICH DAD WAY, Your Choice!!
This article was first sent to me by the Rich DAD family. Author is Robert Kiyosaki
There are two ways to think about retirement…
The traditional way and the RICH DAD WAY.
Traditionally, most financial planners, experts, spokespeople, and journalists plan on two things happening upon your retirement.
- You will have a fixed amount of money to live off of that earns you a small amount of interest, and;
- You will have a lower standard of living during retirement than when you were working. This is due to the loss of a salary or paycheck and rising medical expenses as you age.
The RICH DAD philosophy does not make those assumptions.
Instead, it assumes the following:
- You have passive income coming in every month that equals or exceeds your living expenses – forever! In other words, you never have to worry about running out of money once you retire or stop working, and;
- Your standard of living remains the same or, in many cases, increases. I cant imagine a more horrible money problem that being 60, 70, 80 or 90 years old and knowing you are just out of money.
Reaching your own financial heaven
Following the traditional thinking on retirement is a kind of financial hell.
No one wants to get to retirement and have to worry about whether they will have enough money to live the life they want to.
It is financial hell to work hard all your life only to have to cut back your standard of living as inflation, taxes, and healthcare costs eat away at your hard-earned retirement money.
Instead, based on RICH DAD’s definition of wealth, it advocates for planning and reaching your financial heaven.
You do this by understanding your infinite wealth goal…
What do you need financially to live the life you want without having to worry about money?
And what do you need financially to make enough cash flow through assets to cover your living expenses as you want them to be, not as they need to be?
Reaching your financial heaven requires determining your infinite wealth goal and aspiring towards your dream and then acquiring and applying the knowledge to achieve it.
Whiles it is simple, it is not not necessarily easy but its worth is more than you can imagine.
