How to Retire Wealthy – A Step by Step Guide By Banjo Smyth At Isnare.com Ezine Articles

So you want to know ‘how to retire early’? It seems like everybody wants to do this but not too many are able to achieve this. Why is this case? What does it actually take to retire wealthy? Is it about creating a 2nd income, is it about creating a residual income opportunity or what about do it yourself super? What Is the secret to learning how to retire wealthy? Quite simply I think that the secret to retiring early and wealthy is to learn how to make your money work FOR you. This will create multiple income opportunities that can in turn give you a passive income, hopefully enough to retire wealthy. Let’s have a look at a simple guide on How to Retire Early.

The first question you need to ask is how much money do I need to retire?

The real question is how much passive income will you need to retire? Once you have answered that one you will need to work out how you can achieve that level of automated income. So if you want to know how to retire wealthy you will need to know how to work out these details. My favorite retirement calculator is as follows.

1. How much annual income will you need when you retire (a)

2. What percentage return do you think is realistic (b)

3. To work out the lump sum amount of money you need to retire wealthy simply – Divide (a) by (b) and this will give you the lump sum amount you will need to save or create in order to retire on your necessary wage.

Eg. Let’s assume that you would like an annual income of $50k and you feel that a 10% return is possible. 50,000 divided by .10 = $500,000.

From here there are three different questions you could ask

1. How can I save such a large amount of money?
2. How can you earn a higher average percentage return?
3. How can I retire wealthy without doing any work?

As good as number 3 sounds I’m sorry but it doesn’t work like that so let’s focus our attention on the first two. To save large amount of money you simply need to learn how to invest. Getting your money to work for you is the only way to achieve this sort of wealth. You will also need to learn some ‘non normal’ investment strategies. There aren’t too many people have retired wealthy and young by investing blindly in managed funds. Don’t have your financial future over to a financial planner. If they were a truly successful investor then they would already be retired themselves. This leads into number two, the only way to create higher percentages is learn new strategies. With just a little bit of research you will be amazed at the large array of investment strategies that are possible and some of the increased percentage results that you can achieve. So if you want to know how to retire wealthy the secret is to know how to invest successfully.

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