WHY YOU MUST SAVE

by Bill Tucker on November 9, 2015

“Are Retirees Better Off Than We Think” is the title and topic of a MarketWatch article by Alicia Munnell.  What screams out at me is not the methodology used to calculate income, but rather how poor retired folks are!!!!  Look at the chart below.

Income for Retirees

Regardless of how you calculate the results, 60% – yes, well over half – of all retired households live on under $27,000 per year.  20% live on under $10,000 per year.  That is a hugely sad statement regarding the financial situation of retirees.  A family works their entire life, over 40 years, to get to the “Golden Years”, and has saved exactly $0.00 dollars.

What kind of retirement living do you get on $27,000 per year?   That is only $2,250 per month to live on.  That’s the top of the scale!  You are not traveling abroad, when an economy ticket for one costs over $1,500.  You may drive south for week or two and stay in a lousy hotel.  And that’s best case.

If you’re in the bottom 40% (nearly half of all retirement households), you’re maximum income is only $17,000 per YEAR, under $1,500 per month.  That may cover a modest rent payment and food.  Hopefully you have no credit card debt at that point.  You may be living on macaroni and cheese and hot dogs.

It is time to get an understanding of how dire this situation is.  This is true especially for young people, because the earlier you start saving, even small amounts, the easier it is to get into the habit of paying yourself first, and having a retirement that is enjoyable and meaningful to you.

What do you want to be when you retire?  If you want to be poor and broke, don’t save money.  If you want an enjoyable retirement, start saving now, no matter how hard it seems.

 

WHAT’S A LIFESTYLE BUSINESS?

by Bill Tucker on October 23, 2015

Andy Mueller

Andy Mueller was a sales rep for The North Face Co., living in the Rockies. It was a job and location he loved. Then he lost his job.  He did not know he was ready for a change.  So what did he do? He sold nearly everything he had and traveled to Costa Rica, Nicaragua, Panama and eventually to Hawaii.  He fell in love with the travel.

Eventually, funds ran out. So what did he do then? Andy started a painting company in Hawaii. He decided to try it out for a few months and see what happened. What happened was that Andy got busy. He painted for 2 years.  During that time he took two additional 4 month trips, and his lifestyle business was born.  That has worked so well that Andy has maintained that lifestyle and business.  In his words, he makes money in the 1st world and spends it in the 3rd world.  He has been to nearly every corner of the world at least once and many places far more often. He has met an incredible number of people, gotten immersed in numerous cultures, eaten nearly every food known to man, and has generated experiences that most people can’t even imagine.

His 2014 East Asia blog in which he took with his girlfriend (now wife) through Southeast Asia tells a great tale. A lifestyle of traveling the world sounds fantastic and exciting, and for Andy, the painting business has been a lifestyle business that has allowed him to pursue his passion for exploration.

You don’t have to travel the world to be successful with a lifestyle business.  But Andy Mueller is proof that you can create a lifestyle business that suits your lifestyle preferences.

Top Reasons To Start a Business

October 20, 2015

Do you want to start your own business?  I have started about 15 of them.  So why do people start their own business?  To become super wealthy?  To be the next Mark Cuban or Mark Zuckerberg?  Build a billion dollar company?  Somewhat surprisingly, becoming wealthy is not a top reason for starting a business in […]

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100 Day Project – Do Something Every Day!

October 17, 2015

  Tom Wahlin immersed himself in The 100 Day Project. Each day he created a Wallpaper Disco illustration. It’s a great example of building habits, a little bit at a time.  Each day for 100 days, Tom sat down, and created a new Wallpaper Disco illustration.  Some days it took 5 minutes, some days it […]

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What Do You Want in Life and Business? – Mike Cook

October 14, 2015

Mike Cook — think Buddha meets Mark Cuban — is one of the brightest, most honest, most enjoyable and most direct people you will ever meet.  He has owned management consulting businesses for 30 years, focusing on helping individuals and organizations get aligned toward success. The first question Mike is likely to ask you is […]

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Henry O’Donnell – Surfer Dude to Entrepreneur Making Waves

September 21, 2015

Henry O’Donnell, co-owner of Automation, Inc., a light manufacturer and distributor of high tech robotic devices.  His company has about 50 employees in a 40,000 square foot space.  You would think Henry would be very successful, and you would be right. The past does not always indicate the future though. After graduating from UCSB, Henry decided […]

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Want to Retire a Millionaire?

April 1, 2014

Here is how much you would need to save each month at a 6% annual rate of return, starting at different ages to accumulate 1 million dollars For example…If you save only $499.64 per month starting at 25, you’ll retire a millionaire.  

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Retirement at Risk with One-Third of Workers Have Less than $1,000 Put Away

March 31, 2014

More Americans are confident about their retirement prospects for the first time in seven years, but even so, more than one-third of workers (36%) have a measly $1,000 saved for their later years, according to a new study by the Employee Benefit Research Institute. Read the full article at USA Today. Financial security is usually […]

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