Freedom 55 and Other Lies

Investments and Insurance Planning, Calgary

Turning 30 was the most difficult birthday for me. It's different for everyone, but for me 30 was old. I still didn't know what I wanted to do. I wasn't settled. We didn't have much in the way of assets, savings or investments. I felt lost and a little hopeless. Age 55 still seemed so far away. When we are young it seems so easy to think that we will have it all figured out by the time we are older. Somehow, we think that we will have lots of money by then.

How much money will you need to stop working at age 55 and start doing whatever it is 55 year olds do?

What would a 55 year old need right now to retire? Let's assume a scenario with a married couple with grown kids who own their home. To maintain their lifestyle, let's say they will need about $5000 per month.

They do not yet qualify for any Government pensions, so the $5000 must come from their savings. To generate the $5000 a month to fund their lifestyle they will need to accumulate $1,000,000. They will need to earn a 6% return on their money to make $5000 a month.

2 Questions Arise:

Where the heck can you get a 6% return without exposing the capital ($1,000,000) to too much risk? 

How did they get the $1,000,000 in the first place?

Let me put this into perspective. How do you save $1,000,000?

A 30 year old will need to save $1700 per month for 25 years with an average annual rate of return of 5%.

A 35 year old will need to save $2500 per month. 

A 40 year old will need to save $3800 per month.

You can take more risk to see if you can get a higher rate of return (that's what most people do) but keep in mind that will increase your risk of losing more as well. Alternatively, you can save more each month.

You can also delay freedom longer than age 55. Based on your current situation, at what age will you have your freedom? Just follow this link to McKenzie Calculators and put in your own numbers. We love this calculator.

Your 50's can be your peak earning years, so why would anyone want to quit working so soon? At this stage of my life, I'm settled. I know and understand my strengths and weaknesses and now, I never want to retire. I want to create the lifestyle I want now and live it for as long as I can. I'm no longer focused on retirement or a "future target number".  I'm focused creating a sustainable cash flow to fund my lifestyle right now and for years to come. The whole freedom 55 marketing scheme is utter foolishness. What's important is living everyday with purpose and a plan. 

For Nancy and I, creating that cash flow includes having both passive and active ways to earn income. Every month we earn a little money from several businesses. Writing, rental income, investments and giving advice. We love what we do and will do it for many years to come. For us it's freedom 45.

You also can take control of your life!  Stop letting other people or circumstances dictate how you live.  Our son and his wife are only 24 years old and have 14000 subscribers on their YouTube channel. They are now earning money from google for advertising on their channel. When Nancy and I were 24, we wouldn't imagine doing something like that. Check out their channel (Ayla and Caleb)

There are countless ways to earn extra money doing what you love. It takes creativity. Do some research. Be willing to try something new. Forget about Freedom 55 and focus on Freedom 25, or Freedom 35, or Freedom 45. It's your life and your money, why not enjoy more of both now? 

 

 

Want to get your financial house in order? Then book an introductory meeting in our calendar below and we'll help you get clarity around your goals and values, complete a financial summary on one page and show why a written quality financial and investment plan will provide your highest probability of success in reaching your goals and creating financial security for you and your family. 

Your Trusted Advisors,

Willis & Nancy

587-755-0159

 

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My wife and I realized a long time ago the value of a financial planner over just a bank representative. We just felt like a number to the banks as every year it seemed we saw a different adviser with a different view. But finding a trusted, knowledgeable and personable financial planner took a lot of time and effort. It just seemed, so many large corporate Financial Planners were more concerned about what they could make off of us rather than what they could make for us.
What we wanted, was not just reasonable returns now, but good personal advice in our preparation for retirement and what happens when retirement actually arrives. We wanted someone who would be walking with us, guiding us on our way to retirement.
From the first time, we found the web site for Langford Financial Inc, we could see the knowledge of Willis and Nancy and a real effort to educate and pass on their knowledge through seminars, workshops and their personal service. Once I reached out through their web site for more information, Willis was quick to respond, offering and giving whatever information I was looking for and never was there pressure to commit to anything.
The feeling of comfort and ease when talking with Willis was inviting enough for us to want to meet with Willis and Nancy, just to see firsthand if there was a connection and what working with them would look like.
And when we did meet for the first time, that feeling of comfort and ease was very evident. It was a unique experience for us to be able to sit down and get to know a financial planner (or a team of both Willis and Nancy) and not have any sales pressure on us. Just getting to know Willis and Nancy was important for us. We needed to be comfortable with them and see their competence in the business, and it was obvious that Willis and Nancy wanted to know us better so they could know how best to help us.
Once we decided to move our accounts over to Langford Financial, we found their process was comforting and refreshing as Willis and Nancy first worked at evaluating our complete situation. They dug down to get a complete picture of where we were at, where we wanted to be and how to get there. This took some reflection on our part but once we saw how they put it all together in our “Financial House In Order” binder, we were confident we made the right decision to go with Langford Financial.
Since the time we started working with Willis and Nancy I have attended many of their seminars and can say the information they have been teaching has been amazing. Always relevant, and consistent with their desire to help those coming up to retirement, and covering so many different situations as everyone has a different life situation. I know more than one of the tax-saving strategies they taught at their seminars will work for my wife and I, so we are very happy about that.
We would definitely recommend Langford Financial, not just for all your retirement planning needs, but they have great ideas on savings for your grandchildren too!
Paul and Elaine Radder

Paul & Elaine Radder
Long-term Clients

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