This Guy is Retired and still is the Richest Man in the World.
Did you know that the richest man in the world according to Forbes is Bill Gates? If you by happen chance do not know who he is, Bill Gates is the founder of Microsoft Inc. He basically has about 78 billion dollars as of July 2014. Half of that money is in Microsoft shares, and the kicker is he has been retired from Microsoft since 2008. (Since then he has been on the board) Now why in the heck is somebody who is retired still the reigning champ of wealth? Maybe it is the 6% in ownership of the total Microsoft Stock or maybe he has millions coming in from the books he authored. I decided to write this because I am confused as to how someone who doesn’t make a salary is still worth more than Buffett or Carlos Slim, which both are still employed in their respective companies? If you can solve this puzzle then you maybe can succeed to grow wealth and never lose it in retirement.
Do you know that many municipalities in the US are filing for bankruptcy due to retirement pension default? A recent report released by Bridgewater states that 85% of them will fail in a specific time frame. How confident are you that your pension will last you the rest of your living years? This is why pension concerns are alarming for millions of people in the US. It is a frantic time for anybody who is dependent on that pension succeeding because most are hanging on a short financial string. A sharp scissor is ready to cut funding and politicians could care less. The problem in my opinion is that the people who manage the funds, are not doing enough to grow it, or are misusing the money for the municipality’s other budget shortfalls.
Private pensions are on the same boat as the public pensions. The corporation who was set up to help failing pensions is 34 billion in deficit. The numbers do not lie as it beckons anyone who believes pensions will be around to support them. As quoted in Forbes, “Over the past forty years the Pension Benefit Guaranty Corporation has assumed responsibility for thousands of failed plans. Traditional defined benefit pension plans offered by private employers are rapidly facing extinction and with the PBGC’s deficit recently hitting a record $34 billion, the future of private pensions looks grim.”
Now let’s focus on what can we do to avoid getting a heart attack due to worries that your pension might go under very soon. It all boils down to realizing you have to save more while in your working years. See the pension as gravy if you get it when you retire. Never be dependent on that income from day one and you will see things differently.
Hey my financial friends, if somebody walked up to you and asked you, How much you saved for retirement? Would you answer the question honestly or would you dodge the question? The way you answer might shed light on how confident you are with achieving that magical retirement number everybody talks about in the media. I can bet some greenbacks that the people who answer honestly and without hesitation have all their finances in order, plus they might even know the exact number they have saved to the penny. On the flip side the people who have no idea how much they have in retirement, might not be saving enough thus might feel scared that they will never be able to reach that perfect retirement relaxing on an island beach house.
This is obviously an assumption but you get the idea behind how certain subliminal feelings might come to the surface when asked a personal finance question that might be too personal for some people. I totally understand how this might shock some folks to become guarded, but for the most part talking about money should not be so secretive. The one awesome behavior I have witnessed when I speak with others about money is that talking about it, triggers something within them and then they take greater notice to step it up with finances. This hopefully will lead to them being more competitive with how they manage money for the future. In addition to this it can open up great ideas or discussions with how to make more money. If the person is open mined enough to begin the money dialogue.
If you could trade something, anything for Freedom what would it be? Maybe the desire to not have to work for someone else forever would change something to attain that freedom? This idea might seem far-fetched for many of you today, and that is the exact message I want to instill in how you think for a moment. Every day deals are exchanging hands in the form of currencies, barters, favors, and political power exchanges. Did you know that with every unfavorable exchange you make, you are giving up the chance to possibly have freedom sooner? What can you trade for freedom? The answer should be that you will do anything legally possible to get it.
A simple choice that you must decide can give you a few months of freedom later from having to punch that dreaded time card. Whomever told you that they enjoy working for others is either unaware or in denial, because when working for others is counter productive to allow you much opportunities to work for you. It’s a complete catch 22, because security can be developed greater when working for yourself, but many people do not have the vision to pull it off so they make due and try to find security with working for corporate America. Does corporate America really have your best interest at heart or are we just another source of revenue for the corporations. Did you know that on average employees make the companies they work for about 2-3X the amount they are getting paid as a salary. It’s time to realize that nobody has your best interest at heart except for you.
Do you know that you have a financial responsibility towards the future? In the present you might want to spend every last penny from each pay check, but this is not good for several reasons. See Below:
This trend will lead you to never improve financially. (Bad Habits take time to break)
If you do not have readily available money, no opportunities. (Businesses need startup funds)
The future will look bleak. (Retirement will be below average)
If you have kids you will pass on those horrible habits on to them. (Johnny will not learn the right way to manage money)
Giving back or leaving a windfall for loved ones will be a joke if you do not take things seriously. (What did Dad or Mom leave me? – Headaches with no money)
When you look at your checking account and you see a big fat zero, you may think to yourself dammit I am feeling broke. The next few days you mope and complain that you can never make enough Benjamin’s in this life. The last few months the bank account incurred several overdraft fees. Why is all of this bad misfortune happening to you? One Simple answer to the myriad of complaints listed before, because of the reflection in the mirror. You Have No Patience! People wake up, as the lack of money is not the problem. When you lack patience it makes you do things on impulse, which results with spending above your limit.
Let’s do a big picture exercise, multiply your income X the number of years you have been working. What does that equal? Then add up how much of that you have saved? Kind of low when you compare it to all the income you have made in your entire lifetime.
Example: Average US Income 35 thousand X 5 years working history = 175, 000 dollars. How much of this have you saved? KEEP YELLING YOLO HUH!
Pick up your jaw off the floor now because this is the truth and now you must face it. Many of you want things now, and you will not take no for an answer. If that is how you want to live life then expect to be broke. Also expect to work forever, why because that impatience is taking away from the years you can retire early. I will propose something right now to help anybody struggling out there. Relax and take time to do things. The new summer wardrobe you have to have, it can wait. The new flashy Audi you have been desperately seeking for, it can wait. The yearly 4 thousand dollar vacation you have to take, it can wait. When can the time come to enjoy some fruits of our labor? See below for two very important money equals patience guidelines.
Money is Not the Problem, it’s Patience Checklist:
– Get Patience in Check. Control it now
– Do a Simple Budget, Income Minus Expenses should = Surplus
– If No Surplus cut things immediately
– Save up for raining day fund aka to avoid adding new debt
– Revisit budget to constantly improve upon it
– Track Net Worth Monthly
– Systematically Remove Debt and Increase Net Worth
– Stalk your checking account, from home computer or Cell Phone App
– Keep improving on patience to not fall victim with Money Issues
When can the time come to finally do what you want and not have to worry about money? Simple Solutions:
When you are debt free (Excludes Mortgage)
When you are consistently saving for retirement 15% or better(401K and Roth IRA)
When you are giving / generous $$ without hurting your budget 5%
When you have ample surplus to do what you want with cash
When you can invest in stocks for a retirement back up plan 5% or better
Patience is just as important as the ability to earn money – Rich Uncle EL
Comment if you agree with money is not the problem, it’s patience?
This question is thought of and asked thousands of times from individuals to financial media outlets. How much savings is enough for me to retire? Well I have a simple solution for all of you right here on this great website. The idea for this particular post came to me when I was having a random discussion with a co-worker about food. A light bulb came on in my head and I thought I can solve this simple question easily. The answer is very personal to you because each person’s financial portfolio is different. What makes sense to me might not correlate with your investing strategy, because of this investing tends to be viewed as complicated. But do not fret as there are no wrong answers here today.
If you knew which were the best states for retirees, would that information sway you to live in one of those states? Recently such a list was released by CNN Money with some analytical help from the BankRate guys, they ran an article based on the 10 best states to retire. This list of states will give all the readers who wish to retire the best bang for their dollars. The criteria in the research was based on cost of living, (obviously) climate, crime rate, access to healthcare, and Taxes.
Now mind you some of these states are land locked and in extremely cold areas of the United States, but then have low crime rates. In contrast the states in warmer locals and near the beaches have high crime rates coupled with low taxes. The first poison you have to decide above all else is how the heck can you save enough to retire, then you can pick and choose all the dirty little things that you can live with and or without in these great states. Like being far away from the ocean, high crime, low freezing temperatures, and low taxes.
If you knew which were the best states for retirees, would that information sway you to live in one of those states? Recently such a list was released by CNN Money with some analytical help from the BankRate guys, they ran an article based on the 10 best states to retire. This list of states will give all the readers who wish to retire the best bang for their dollars. The criteria in the research was based on cost of living, (obviously) climate, crime rate, access to healthcare, and Taxes.