Uncategorized Vivian | 27 Feb 2010 08:04 am

Retirement – Do You Have a Renewable Source of Income?

In today’s uncertain times, having a retirement account may not be enough. You can do all the right things and still see your money evaporate due to forces outside of your control. Having a retirement account is like fossil fuel energy, it’s finite, and sooner or later, it will be used up. What you need is a renewable source of income.

Retirement is something that most people are in denial about. They struggle day to day to make ends meet and are then told they have to save hundreds or thousands of dollars a month just to retire at the same income they are struggling with. Most people just don’t do it.

This is born out by studies. The statistics show that even after of 20 years of tax favored retirement savings accounts such as the 401(k), 4 out of 5 baby boomers have less than $25,000 in savings. What’s worse is that 2 out of 5 have less than $1,000 in savings which is virtually nothing.

Those that have saved usually put their funds into mutual funds which typically invest in stocks. They have done their due diligence and spread their risk. However, lately, they are finding the value of their accounts have dropped due to the latest turmoil on Wall Street.

People who have already retired may be forced to ‘unretire’ because their retirement accounts have dropped to unsustainable levels.

The basic concept flaw of a retirement account that no one wants to talk about is that once you retire, you set up a race to see which runs out first, your money or your life. The recent economic climate points out that most likely it will be your money.

The retirement account is designed to fund your income stream once your job stops. It’s the income stream that is important, not your retirement account.

How do you create an income stream that will allow you to retire? Some of the criteria you might want to look for is will it continue while you enjoy yourself? Can it increase to cover the rising costs of living such as the huge increase in gas prices? Can I do it? And, can you pass it on to your heirs?

One such answer that fits is a home based business. Many home based businesses offer residual income. Residual income is income that comes in long after the work to create it has been done. One example is an author who published a book in 1980 and is still collecting royalties from it 28 years later.

Once you build your residual income, it keeps coming in. Many people have had interruptions in their lives such as medical problems for themselves or loved ones that have taken away their ability to work and the checks continue. Others have taken years off to raise their children and the income continues.

Since the income is under your control, you can increase it to cover inflation. This income is definitely not fixed. In many businesses, your income will grow due to leveraging other people’s efforts without you having to do much.

Most home based businesses offer training and coaching designed to help the average person become successful. The people who help you are more successful when you become successful so they have a big incentive you help you. With most home businesses, you are in business for yourself but not by yourself.

Since you are building a business, it’s an asset that can be passed on to your heirs. If you have a special needs child or grandchild, you can set up the business so that the income will continue to take care of them after you are gone.

Another aspect of creating this renewable source of income is that it can allow you to retire at any age. Once the income covers your living expenses, you are financially independent. You can go into your boss’ office, put your feet up on his desk and tell him that you can no longer afford to work there whether you are 65, 45 or 25.

With all of these pluses, why aren’t more people doing it? The short answer is that it takes effort to build your business. Most people are content to watch TV for enjoyment now rather than invest their time to make their future better.

For the person who has the right ‘why’ and who is will to be coachable, they can own their life with more freedom and security than they ever dreamed.

Rick Rule has taken control of his life and enjoys the lifestyle he wants. He also teaches others how to become generate their renewable income source to enjoy their perfect lifestyle. To see what he can do for you, visit his site at http://www.DiscoverYourOwnFreedom.com

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