Over the years, people ask me how to get wealthy. And, my answer has never changed. Just spend less than you make. Or, as my retired college physics professor friend says, “Make sure income exceeds outflow”. So, when I came across the attached article, I thought this would make a good topic for the week.
Most of the author’s rules are pretty straight forward but #5 caught my attention when Mr. Foroux’s indicated his personal short-term strategy was to have multiple income streams. It helps when he’s still earning income but, what happens when you’re retired?
The Liberated Investor Advantage™, my 9-step financial planning program, spends a lot of time working with clients to teach them how money works (Rule #2) and creating multiple streams of income from multiple sources (Rule #5) We look at the traditional retirement approach versus an enhanced retirement approach. Included is a special segment on what is called the “Sequence of Returns”, a study of withdrawal rates and how the reality of variable returns can affect the possibility of running out of retirement income.
If you would like more information about the planning process, or just wish to ask a question or schedule a time to meet, please just call or email me.
Now, let’s all go out and help make the world a better place to be.
PS: Always remember, investing in equity markets has risk and past performance is no guarantee of future results.