A Smarter Option Than Retirement Investment Income
Meet Joby. Think of him as a guy who has a SECURE and good paying Job. He can also be a practicing professional. Joby starts his work at around 8:00am. He wakes up at 6:00am so he has time to prepare and travel. If he arrives early at his place of employment, he may have time for a coffee or a quick breakfast. When the short hand points to 8, he starts working. If he is a doctor, he might already have a number of patients on queue.
Life continues. A number of years passed and Joby gets married and raises children. Realizing that his cost of living starts becoming more than he can handle, he applies for a loan or credit card. Relief arrives. Because of hard work and overtimes, he gets extra income income and possibly gets promoted. Life begins to get comfortable again, so, he buys more stuff like furniture, appliances, flat screen TV and so on. He buys anything to reward himself. Joby's family is getting bigger so they move to a more spacious home and he buys a new car. An additional loan is always available and he is qualified to avail of that. The new neighbors see them as a wealthy family. Because prices of commodities continue to go up faster than his salary and the kids need more requirements in school, he starts to worry again. And since he has to wait for many years before his retirement investment to mature, he borrows more money. He just thought:“I will just pay off my loans when I find moonlighting jobs or get my retirement investment income”. He realizes that his earnings are never enough and his time for his family is getting lesser and lesser. His hopes of having prices of goods going down have already left his mind and just accepts the reality. The wrong picture. If you know better, you would say this is a horror story. Although Joby have a nice house, a nice car and a lot of stuffs, would you say that he is really wealthy? What if a better, younger employee takes his place and he gets fired? What if he becomes sick or gets injured for life? What if a member of his family gets sick or get's injured for life? What if he receives only half his salary because recession struck the company? If he have savings for retirement, will he last 3 months without a job? How about 6 months? The problem here is that Joby has no control. He gets paid only when he works. He cannot say that he has total security and freedom because he does not own the company. He is totally dependent on his salary. Even if he were a practicing professional, like a Doctor, he is only limited to his capacity to work. Joby cannot work 24 hours a day or he will end up in the hospital. Well, Joby has a defined contribution plan and a life annuity. Great! Will that be sufficient to meet those circumstances? Most pensions like the 401k retirement plans are attractive when one computes the maturity value today. However, will the value be the same at maturity date? Usually not! If you are in the same possible scenario, what will you do? If you have read the newspapers lately, a lot of pension and insurance companies are failing to give retirees their benefits. That is because of the ever changing economy. If you were Joby, what would you do? Sometimes we need to be afraid now so we can be brave and strong tomorrow We can only hope that the bad things will not happen to us, but they happen. Maybe not now but they can in the future. Sometimes we have to know the worse possible circumstances so we can be ready and do not have to go through it all. If your option is to get passive earnings through retirement investment income, that is really insufficient. It takes a lifetime contribution to build and sometimes even risky. The Smarter Option is to earn passive residual income or passive investment income. Better yet, combine them. When can you do this? Today! Read the
passive income opportunities page.
It has been a while and now and Joby is already 60 years old. At the workplace, he shakes hands with his peers as he leaves his office with a boxfull of old documents and souvenirs. Later, he realizes he needs another job and he needs it fast. The retirement investment income is not enough. Wealthy friend retirees call in the middle of a Tuesday and invite him to play golf with them. He could not join. Then he thinks: “How come they managed to retire rich and have a better life”?
Why do you need PIncPassion E-zine? Click here to know why. Return from retirement investment to passive income opportunities. Return from retirement investment to passive income passion.
|
To better illustrate retirement investment income, let is take a look at the real story of most employees today.
