Financial Freedom Strategy With Retirement Planning.
In my previous post, I was vehemently against retirement. And you know why – your very being starts to die. So does that mean retirement plans are bad and should not be attempted?
Money
Of course you should continue to apply it. This is very firmly a part of your financial freedom strategy. Think of it this way. As a smart business person would you or would you not put in place an exit strategy for all your investments? Of course you would. You’ll miss the mark if you can only buy but not sell for profit.
Of course, the more aggressively you apply the savings as a plan for your retirement, the sooner you will arrive at your mark that you will feel comfortable to attain financial freedom. remember, this is your level of comfort, no one elses.
Let us take a look at 2 real world scenarios applied by 2 very different countries and see for yourself which one fits you better (you may go somewhere in between).
Stone Lion Outside A Singapore Bank
1) In Singapore a draconian 25% forced savings was applied across the board on salaries, while employers were required to apply a matching 25% into the savings account of the employee in the Government’s Central Provident Fund.
2) In Canada, the “forced savings” or tax was really fluctuating between 4% and 6% or more of salaries but now, as more people are retiring, the system or CPP (Canadian Pension Plan) is virtually out of cash. A tax break plan where an RRSP (Registered Retirement Savings Plan) through the banking system is very definitely not going to help the poverty level income earners – they simply cannot save.
Now, the huge disparities between the 2 approaches bore hugely different results. The comparison over twenty years saw many people in the first scenario actually buying their own homes even before retirement, travel annualy, get higher education, put their kids through overseas education, or even start their own business from real cash. Yet they still have money left over for investments.
In the second scenario, the fear is that more than 80% of the population will fall into poverty. You do the math.
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[...] really says a little more about retirement planning, and it’s never too early to plan your retirement. After all is that the lifestyle you want? [...]