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How To Avoid Being Complacent About Your Retirement

))))Sidebar(((( Thanks to everyone who ordered my Ultimate No-Brainer Selling Skills Manual Vol. II. I'm taking it to the printer today and it will be shipped to you next week. You'll be happy to know I added a special 33 page bonus to the manual titled, "No-Brainer Ways To Beat Your Competition At The Pricing Game." This is a $39.95 value.
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Do you have what it takes to do what it takes to allow you to live comfortably during your retirement years? You can hardly pick up any business magazine without seeing an article discussing the plight of the Baby Boomer generation. It's estimated that there are 76 million Baby Boomers who were born between 1946 and 1964.

This year the oldest of the Baby Boomer Brigade turns 60. According to what's being written over 90% of these early Baby Boomers don't have sufficient funds for an adequate retirement. Holy Messaroo!

How come you might be wondering? Here's a simple truth. You have to save some money. Like 5%, 10%, 15%, 20%, 25%, 30%, or more of your gross income every year if you want compounding to work its magic for you.

Last week I was giving a seminar to a group that specializes in retirement planning services for small and medium-sized businesses. Naturally, they understand an awful lot about the mechanics of saving for retirement. We were kicking around some ideas that they could use with their customers and I'd like to share some of these with you.

To get started you'll need two sheets of paper. On one sheet of paper list the dollar value of everything you own. Take it easy on placing high values on personal items. This is more about financial assets including your home, stocks, mutual funds, bonds, and even boxes of $100 bills hidden under your bed. Once your list is finished, total it up.

On another sheet of paper list everything you owe. This list includes your mortgage, all balances on credit cards, and all other debts including personal loans to anyone. Once your list is finished, total it up.

Now it's time for a third sheet of paper. Write the number that equals what you own. Then subtract what you owe from this number. What you are left with is your net worth.
This next step is important and probably will be enlightening for some of you. When you retire your sources of income will include Social Security, company pensions - which by the way are disappearing at an alarming rate, IRAs, 401K's, and other funds included in your net worth.

Now I'm not a financial planner but I'd read what they write. Most financial planners estimate you can pull out 5% of your net worth annually, to fund your retirement, and expect the principle to last throughout your retirement years. Let me explain what most people don't get - plain and simple.

Describe your dream for retirement. It helps if you put it on paper. How much will the ticket for your dream cost each year? When you're 72 years old will you still have to work part-time to pay for the ticket to your dream retirement?

Take a look at these numbers:

Net Worth$ 5% annual withdrawal Monthly income

$100,000 $5,000 $416
$500,000 $25,000 $2,083
$1,000,000 $50,000 $4,166
$1,500,000 $75,000 $6,250
$2,500,000 $125,000 $10,416
$4,000,000 $200,000 $16,666

The best way to use this little chart is to work it backwards.
Ask yourself how much income you need monthly to pay for the ticket to your retirement dream.

Then go to the first column to see how much (Own - owe) net worth you'll need to pay for it.

The best time to start thinking and planning for your dream retirement is now.
I know someone who has a net worth of $500,000. He thinks he's flush with cash. Come retirement his income will be at the poverty level - which is not a pleasant thought.
Your dream for your retirement is not an entitlement which is the bad news.
The good news is, it's never too late to start saving for your dream.

When you combine exuberant savings with moderate compounding the results are staggering.

What you save today will determine how you'll live in retirement.

Two options - one choice. Dream or nightmare!


Let's go sell something . . .


Jim Meisenheimer


PS - one way to save more is to earn more. My new Ultimate No-Brainer Selling Skills Manual Vol. II - won't cost you a penny because the payback for you is immediate. You'd have to be brain-dead not to be able to take these invaluable sales tips and convert them to new business.http://www.meisenheimer.com/products/manual2.htm



PPS - Inner Circle Update: FYI - This month's CD will be an interview with Bob Burg, the author of Endless Referrals. He's a master at creating more sales in less time and I'm sure you'll get some great ideas you can share with your salespeople: http://meisenheimer.com/sales_coaching/individual.shtml

# posted by Jim Meisenheimer @ 8:11 AM