How Much Money Do I Need To Retire

Updated : Sep 05, 2019 in Articles

How Much Money Do I Need To Retire


A really important question today. How
much did you save for retirement? Like, what is the real math? What’s the real
number? What are you going to need to retire? I’m glad you’re asking because
not a lot of people actually even care to think about it but the reality is,
there is some science to this and that’s what we’re going to break down for you
today. How much money do I need for retirement? How could I really know, it’s your
business not mine. – So how much do you need for retirement? This is what we’re
talking about and this is a personal questions, you’re going to have a personal
answer, it’s going to be different for everybody but I think more importantly
than how much do I need, I want you to get focused on what exactly is that you
want in retirement. Forget retirement, let’s go back to what we had talked
about before, fulfillment. What will create fulfillment for you? So again,
let’s get away from the word retirement and let’s just start using fulfillment
for a moment. What do you need to feel fulfilled? – Because this is the world
that we live in today. We live in an accumulation mindset. Everything in
society and raised up as go to college, get good grades, get a degree then work
for somebody else, save save save, 401k and what we’re doing is, we believe that
we can save ourselves to freedom. Well just for a moment, let’s actually go with
your math, let’s actually say that you get a good job, you’re making more than
the national average, let’s say instead of 44,000 a year you and your spouse are
working, maybe you’ve got a combined income of $80,000 a year and you’re
setting money inside the 401k and IRA, you got a match, oh, I’m getting my
match. So I’m doing everything right according to society,
let’s fast forward 10 years, pit stop. My 401k has accumulated a little
bit of money, I’m feeling good about it cause I got something in there. I’ve been
paying down my house that I bought right because after 10 years, I’m now done
paying the front loaded interest and now I’m starting to pay down more and more
as a good assistant manager, I paying down some of my vehicles, 10 more years,
driving driving driving, pit stop, we’re 20 years in, you got more money
in your 401k, you got more of your house paid,
yeah that’s going away – Wait, your daughter just got married. – Yeah, we picked
up some more debt but don’t worry, we got time, we’ll pay it off. – But
how are you going to pay for the wedding? – Well, I’ll probably with the car that we
just bought for her, I don’t know yet. You know what, time we’ll solve
this, this plan has been taught to us, it will prevail. – Let’s refinance
your house so we can pull out some money, pay for
the wedding. – Yeah, that will be great but don’t worry,
we got time, okay. Cheers ten more years left, we’re 30 years into our plan, my
401k is actually, you know, I just passed a hundred thousand dollars a month.
I’m putting some money sat in there and then all of a sudden my house,
I had to refinance it along the way one more time but you know, we still have a
hundred thousand dollars of equity and how am I feeling? I’m
starting to feel a little desperate, I’m starting to feel like okay, wow. I’m on
the other side of the fence, I’ve been following society’s plan 30
years into it and it’s not very much money when I’m being honest, I don’t
really want to look at that but it’s not everything that I was home being that it
might be, that’s okay, you know what, let’s go, let’s go. – We’re still saving. – 10 more
years goes down the road and all the sudden pit stop, it’s like, how are we
feeling? Panic, right? It’s all studying and it’s
like, I don’t got enough money, I got laid off once, I picked up another job, they’re
telling me I’m too old, I’m not marketable, I got these wrinkles, I go
they go away and the more weddings and at the end of the day, a divorce down the
road and it’s like, crap, I followed the plan and actually thought I was
executing it quite well. Let’s just say though that in all of that accumulation
you have $300,000, you’ve got your house, let’s say it’s paid off,
your $250,000 house paid off, let’s say you’ve got a quarter million
in 401k, no one does but let’s just say you do, you got a courthouse paid off,
you got a quarter million in 401k, you even put $50,000 into an IRA
but we’ve got a half a million dollar net worth, we got $500,000,
I worked for 40 years, I accumulated and the reality is that, I
live off of $70,000 a year so if I have $500,000
now that I’ve spent 40 years building it, how many years will it take
for me to decimate it, annihilate it, destroy it, reduce it to rubble?
7 or 8 years from now, guess what? A lifetime is gone and
this is what Steven and I are asking, is that a good plan if you know it can’t
work? – I want to talk about this in terms of a quick just analogy, building a
home. Now I don’t know if any of you have ever built a home but this is what we’re
talking about, you’re building your financial home and this is that kind of
accumulation mindset so just stay with me for a moment.
You start with this foundation, you build it then you frame up the home then you
put the systems in the home, you put the exterior of the home, you put the roof of the home
and your building building building building. Once you’ve completed your home,
would it ever makes sense to you to then in retirement,
in this fulfillment time, to start taking apart that home board by board, brick by
brick – Let’s start with the roof – until there’s – Rain’s getting inside. – no more home left. Like,
does that ever make sense and the answer that I have for me is no, that makes
absolutely no sense. The reality is we are all doing this financially, we build
this financial home in accumulating only to then disperse it, spend it, put it
out there and to take it back down to nothing at the end so do we want to
accumulate your retirement? – The reality is the reality is that if you’re stuck
in the accumulation mindset, let’s get even, let’s actually talk about the very
few that becomes super successful with accumulation. I’ve met people that has set
a million aside or even one and a half million and to get there, they were
financially petrified, terrified and scared, they’re living in scarcity,
they’re living on bread crumbs, their cheapest church mice and who they’ve
become in the process of there is this much and there is an energy of
negativity and it’s because they’ve done the math and they know the reality, it’s
like, I don’t know when I’m going to die, I don’t know what my d-day is and so I
got to make sure that I’m prepared for that, maybe leave something for my
children so here’s what we’re going to say, if you have this accumulation plan
through a job and you think you can accumulate a million dollars, maybe two
million dollars, you can definitely put a basic life together. Why? Because a
million dollars in retirement sitting in an annuity at 40 at 4% is going to give you
about $40,000 so if you have two million dollars, $80,000. You would
need $2,000,000 to replace your lifestyle of $8,000 and
we’re not even talking about putting inflation which is eating at your money
3% a year into account. So when you start doing the math, it’s like, for the average
person in this country, the average household income, they do need
$2,000,000, that’s the number that they need but how far will they fall
short? Not by half, they won’t even get a quarter of it, most of them are going to get
between 5% and 15% percent of what is needed with the accumulation
mentality so we need something different, we need a really really big upgrade and
today we’re going to talk about something that generates real freedom way sooner
way quicker instead of how much can you accumulate, it’s how much residual income
can you establish? – So again, the question is how much do you need to retire? How much
do you need for retirement? Instead of getting to that accumulated number, that
end-all-be-all number, like you said, the reality is, how much do you need on a
monthly basis? What do you need to sustain and to keep your lifestyle?
– And don’t forget the fulfillment, the dream, the fulfillment parties on the grand kids. – Absolutely, right. What do you need to grow into a retirement or into a fulfilled life
today and tomorrow? What can you do also to pass that down. I’m want to talk about this for a
second, this is important here. It’s not just about that retirement number but a
lot of people in retirement want to help their kids, want to help their
grandkids, right? And so, how do you build that proper legacy and one of the
reasons why Kris and I gravitate to real estate so much is because real
estate is that thing that can do that, it’s not about accumulating all this
money, it’s about getting real estate that works for you, that’s paying
you on a monthly basis so we had a scenario where you talked about earlier,
right, if you had a choice, now it’s going to give you either a million dollars on
one hand or allow you to earn $10,000 a month for the rest of your life, what
would you choose? – Well I know that there’s a lot of people would say, I want
to be a millionaire so I’ve freakin’ bad but the reality is is that the $10,000 a
month every month for the rest of your life, not only does that represent 12% 14%
return on your money but more importantly, it’s the fact that if you
can create a lifestyle that fits inside of your residual, you’re set. I was just
talking with great these are a couple of our clients, they’ve been with
us now for I think maybe 6 years, they’re now working on their night house
I think it is. They’ve got several thousand dollars a month residual income,
$4,000 or $5,000 and I don’t know what their retirement goals
are but what I do know is that they’ve got a wealth building plan that
started out very small. Bought a property, $300 a month cash flow, bought another
property, $750 of combined cash flow and when I
retired the first time, it came down to, what’s my no matter what residual income?
And real estate can produce that predictably, you can also insulate it
from market crashes because winter will come it always does, we’re in suspended fall
animation right now and so the good news for you is instead of trying to dream up
a two million dollar number or a 5 million or a 1 million dollar number,
instead, you just kind of ask, what is it that I need every month to sustain my
lifestyle and then how do I invest an asset
that produce that? And friends, that is the secret to arriving at your number,
what you’ve got to ask yourself and then I want to give you a bonus. I want to invite
you to ask yourself right now, how much do you want every month automatic is in
minimum coming in and that’s going to help you figure your mouth out, if it’s $6,000
a month and if that represents paying all of your bills and
then having some, a little bit of travel on this or maybe it’s $15,000,
whatever the number is, that’s the number for you to focus on and you got to start
translating your big dollars into residuals. Now here’s the bonus that I
want to share with you. If you want to know the most important financial
decision you will ever make in your life because you’re about to make it, the
singular most important, okay, this is a big, there’s no hyperbole, this is a
really big super – I’m excited for this so – that single biggest most important
financial decision that you could ever make comes down to one thing, how much
money are you going to take religiously out of every check that is set aside for
building that residual income? For some of you, might be 10%, might be
5%, it might be 20%. You see, we live in a world part of this
accumulation mindset and part of the way so many of us even get to check to check
is because we actually don’t pay ourselves, we’re actually paying our
bills instead of paying us and when you pay yourself, you can’t pay it off the
bottom because by the time you’re done with your bills, guess what.
There’s nothing left so you got to start paying yourself when? This can get
a little personal for a second here but my wife and I, you know, we we pay 10%
to charity every single year through our church, that’s something
that’s really important to us that we do but in addition, there’s an amount of
money of our income that we take every month out as a bill and we shove it in a
place that basically it’s not for spending, it’s not for touching, it’s not
for bills, it’s what we set aside for our investments and recently, I called my
wife up and I said, you know what, I want you to add 10% more of our gross revenue
off of that and at first I didn’t explain myself, she’s like, why are we
doing that? We’re allocating so much money every month to our investments
and the things that we’re investing in, why are you wanting another 10%? I
said because I know that if with every check that goes into our account, if you
pull 10% more out and put it in that account, we will always magically
still find a way to have enough for bills, we always do, there’s always going to
be enough so I don’t care whether you’re check to check behind, if you don’t have
money, if you right now are totally check to check, I could challenge you right now
to take $200 a month and put it away in account and you would say, Kris, that’s
not possible. – Do it. – Take me to the bank, put that
200 there, make it totally untouchable make it the first thing that you take
out of your check and then go balance your budget and I promise you, you will
not only find a way but it is through these simple and small means, through
this one most important financial decision that you start accumulating a
little bit. Now if you understand the power of compound interest a little bit,
can you accumulate to finally put into the right investment, in an investment
like real estate that’s going to grow. Listen, if you look at, if you snapshot
in 5 years like, I can’t retire on that. Guys, that’s a snapshot, that’s a blip,
that’s a moment in time but if you keep compounding it and you check in 5
years later, it’s like, where did all these houses come from? Oh yeah, I made
the most important financial decision while and I stuck to it no matter what
and friends, that’s how you get the money set aside for your investing. Now if you
wanted to go faster than that then you would do it with Steven and I through
our partnering program and partnering is where we show you to go and find people
to have the money that will invest in our real estate with you and then we’re
going to do deals together so there’s always a way to go faster but if you’re
not going to take our lease option course, if you’re not going to join our real
estate community, our paid community, if you’re not going to join our partner
profits program then at least do this, make the most important financial
decision today which is decide the percentage of your check that you get
that you will automatically pull out and set aside because through that little
means, you can grow that and compound that over 10 years, 20 years and you can grow
that into a fortune with the residual income that you can retire. So what’s
your number? How much do you need for the retirement you want? What do you need for
the passive residual income? If you want some help not only calculating it but
getting a real plan that can support all the real estate you need to make that
happen then check out our website, we’ve got awesome tools and and free gifts and
reports and more hand-holding that we can offer you to walk you through
exactly how to make that happen.

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