Quote:
Originally Posted by Shap
It's sad to see how many people have pissed away retirement and a great life in exchange for short term gratification. Unfortunately I know more people in this industry who have blown millions than people that have saved millions.
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It's mind blowing. Absolutely mind blowing. I've run calculations in situations showing what someone would have ended up with at retirement if they would have put the money into a long term guaranteed investment vs buying a $100,000 sports car. It would make people who bought a garage full of them (who are now broke and sold them off pennies on the dollars) cry if they could see how much that money could have grown into 20,30,40 years from now.
I'll throw some rough numbers out so people can really see what I am saying. If you get a 7.2% growth rate on your money, it will double every 10 years. There are guaranteed long term investments you can do to get a rate like this.
Years Total
0 $100,000
10 $200,000
20 $400,000
30 $800,000
40 $1,600,000
So if you are 30 years old, would you have rather the nice sports car or $800,000 at age 65 ? especially if you stopped making lots of money and had to go get a job, you will never be able to retire, but hey you had a nice sports car for a couple years, and will be able to tell nice stories about it to your grand kids
This is really cool, if you can let the money grow (as shown above) for 40 years. Take someone 25 years old that made lot of money and instead of blowing it, he took $100,000 and invested it as shown. At age 65 (40 years) if he pulled out 6% a year to live on he would have $96,000 a year income. So he puts $100,000 away and 40 years later he will have $100,000 a YEAR for the rest of his life, and the kicker is he never touches the principle, which can continue to grow at 7% since he is only taking out 6%.
Don't get me wrong everyone wants to have fun and blow a little money. But a lot of people in our industry took all of their money and blew it on toys. The little investing that they do is into a restaurant or bar or something very high risk that they wind up getting screwed on. I came up with the saying " do you want to look rich or be rich ". I think we know where a lot of people in our industry fit into that.
Everyone should have a plan for themselves and take a percentage of their money and put it towards short term (some risk) and long term secure investments, to be diversified in different things, if you want to put some in gold, stocks, real-estate etc... as long as you are diversified and put some of it into secure long term investments (plan b) if all else fails you know you will at least be able to retire later in life and enjoy it.
Quote:
Originally Posted by Shap
Btw cool of you to take the time to write and post this Will  |
Thanks.