Private Banking

Freedom 55: the Truth

Freedom 55, is that truth or a myth?

To remember how Freedom 55 came about, I’ll need to dig deep into the recesses of my memory…but I do remember the dream…

When I was a boy it was such a huge dream for many of my “elders” to retire at the newly announced retirement age of 55 years. The government had introduced a pension plan that would take care of all retirees for the rest of their lives after retirement. Back then, it was considered great fortune to be able to exceed the magic 60 years of age. But they seem to forget they can’t take that now huge retirement benefit with them. Nor can they do so with a large bank account. Many of my grand uncles, family friends and people of importance seem to fill the cemetary with regularity just after their “retirement”.

Was this a well planned government conspiracy? Or perhaps statistics made it plain that retirement payouts would end then and would still leave most of their forced savings within the “system”? However, in later years, the government offered to let people take early retirement if they could reasonably afford to do so. Which means, the early retirement dream could become reality.

Freedom 55 in reality is really a dream. An innovative campaign by Canada’s London Life became one of the most successful marketing campaigns. Regardless of economic times, warnings from financial “experts” and so forth, achieving financial freedom at a certain age with a fixed achievable plan became very well received. In fact, when you sell the dream people will buy that very dream with the caveats and all attached.

 

Planning Shortfall

Well and good, but not too many people it appears, can and will ever achieve that financial freedom status for a variety of reasons. Many of these savings systems will never be able to save enough for the insured and invested person on most financial plans – simply because of a number of factors:

* Inflation – often, the “planner” only shows an average linear inflationary rate. What’s forgotten is the actual cost of living like housing costs. 

* Stock market crashes can decimate blue chip companies and your entire investment.

* Taxes – special taxes are never foreseen…, also taxes can be variable even during your retirement and when you withdraw that “retirement fund”.

* Lifestyle requirements change – are you still working, do you need special medical treatment or do you travel often?

 

Unpredictable Future Made Predictable

In short, the future is unpredictable. However, what can be made more predictable is to plan for the long term but take action over the near and medium term. This strategy allows one to make specific changes and adjustments to achieve your life goals.

Many health and wealth building home based business experts do constantly remind us all that achieving financial freedom should be a goal from any age. I agree. In one fell swoop, embracing this lifestyle concept suddenly releases you to strive for what your goals in life truly are. You can then see your way to have your own small business, your own big business, your investment/income goals, work till you drop from old age, bum around, go fishing, live a life of little need in a fishing village, or live with princes and princesses of excess.

Bankers and financial planners will often tell you that the longer term investments are the most subject to volatility. That is why longer term bank loans tend to cost more. Similarly, longer term deposits tend to pay more. The cost of money gets more unpredictable the further in the future it becomes. Likewise your future investment planning.

Really long term goals is really better left as a philosophical direction in life. The actual action must be taken here and now, over the forseeable future. For example, you invest in a stock that came very well reccommended. Remember that stocks tend to have a very cyclical life over a very few years or even months. When do you buy it? Do you buy an apparently invincible  blue chip stock like General Motors to hold over a very long period in the expectation it will yield you a very nice annual income, or perhaps as the last financial crash had demonstrated, to lose it all. Or perhaps your strategy would be to follow closely the reccommendations of winners and work the win to loss ratios in your own favour?

What if I told you one of the best performing stocks in China is the China Green Agriculture company – would you you be so inclined to invest in a foreign country? Compare it’s vital statistics to any North American stock and you’ll find it to be a fantastic investment over the next couple of years – but will you even go for it? Or will you be far more daring and break with the crowd, brave the nay sayers, family and friends, the banks who would put you down and strike out on your own business? Most people start small in their own home based businesses.

Now, how does one overcome the fear of such indecisions? The answer has always been missing from our schools – the true financial education where you learn how to function in everyday life financially. One is never taught in school on “How to make money independently”. Instead one is taught to become automotons of labour for the huge corporate entities and the government. Thus when some huge corporation sells you a dream like Freedom 55, a ready made market is already there.

 

Educate Yourself

Educating yourself makes for the best philosophical change you can make. Good knowledge can free you by offering you the directions and know how you can take in order that your life can be directed the way far closer to your desires. Now, this direction may not be for everyone simply because of the fear of the unknown. Knowledge is the great mitigator – offering you light instead of the darkness of dissatisfaction you cower from in the face of fear.

Check through the stories of some of the most successful people in history. In fact, find successful people in your midst. You will find that over 99% of them will tell you a stroy of trials and stories of failures along with success. In the final assessment, you will find that people like you and I, got there simply because they tried and never gave up their dream of their very own Freedom at any Age!

Of course, with all those success stories come failures. But understand, they will tell you, that the apparent failures are really just a learning curve; some more steeply inclined than others. There are a huge variety of winning ways. Some will find it in internet marketing, others in the stock market, you’ll find business Mums competing with corporate Dads, politicians, importers and exporters, investors of all shapes and sizes. You’ll find this is the best form private wealth management there is. You do so at your own direction.

One common thing that they all have also, is their desire to learn to become the success that they have become. It is a given that they all become experts in what they do. That is why they make the bucks and are listened to when they speak out. Call them Gurus. Call them Mavens. But listen to these experts. And educate yourself. Then only then, when you strike out on your own path can you be assured of your very own Freedom 25 to 105. What is your favourite age for freedom?

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