Is $1 Million Enough To Retire?

The issue of the decade, and if it isn’t yet it soon will be, is a simple matter of retirement-ability. While $1 Million used to be good enough to get you buy (pun intended), it seems that along with a once strong dollar goes the hope of so many Americans who live the work-40-years then retire-rich mentality. Sure we have our 401ks, IRAs and MEWs, but the fact remains, it just might not be enough.

In a recent U.S. News article, the matter is addressed. Without petty details, there are 3 main issues that must be reckoned with: How much you have, how much you’ll make, and how long you’ll live.

Chances are, what you have isn’t enough to retire on. And chances are that what you make today won’t suffice till tomorrow, especially if Merck comes out with a miracle drug that make you live to 105.

About your “safe” job, who says you’ll last another X years? Service workers in GM 30 years ago were in what they considered the safest job in the World. Today they’re being let go.

And what about Inflation: “I know”, most people will say “I lose about 2-3% annually to a declining Dollar”. No! That’s so 90s. With all the money the Government is pumping into the system to save the economy we are probably looking at 70s-style inflation all over – we’re talking about a possible 10-15% annual increase in the basic cost of living.

So what to do? To make more you have got to think bigger. You may want to consider starting your own business with the skills you’ve accumulated over the years. It’s a lot easier than people think. The problem is that people often don’t.

You may also want to consider alternative investments that aren’t Dollar based. Allocation to gold or may suffice, or maybe some international investments such as foreign real estate or stock funds. But when stuck between two options… always choose a third:

Split up your retirement
In the 4HWW, Ferriss brings great yet simple logic to the table: If you hate your job, why would you want to suffer with it for the next 10, 20, 30 years? If you love it why would you want to retire at 65? If you don’t have the millions necessary for retirement, your job won’t help. If you’re so entrepreneurial that you have made your millions, what makes you believe you’d just resort to sitting on the beach all day once you do turn 65?

By splitting up your life into a series on “mini-retirements” you get the best of both worlds, allowing yourself to enjoy life while you’re still young and saving some for your old age.

“But how do you do that? How can I take time off what I do? How can I have fun for the same price of my current lifetsyle?”. This my freinds is what our blog is all about!


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