Retirement planning is kinda like running a business.
First you start the planning and thinking about it.
Do the calculation, market research, ask around for more info, etc...
Some people don't plan and just chiong... go in blindly...
Sometimes, the people who chiong succeed, sometimes they don't. Never know really. Sometimes even those who plan fail as well.
Then, need to find money to start it out.
Which is usually your savings, you know, like excess money after your personal expenses.
Then the execution and growth of the business.
Save, invest, borrow money to invest, leverage, diversify.
Year on year, you want to keep growing the business.
You need to manage this "business", what strategy you want to take, how you want to grow, etc.
Must make sure the business is profitable, grows, and is cashflow positive.
Well, some people might be cashflow negative when they buy a property. They rent it out, but the rental isn't enough to pay the mortgage so they have to input even more capital.
Some people also do that for their business, they have confidence that their business will grow, but just needs to input more capital at the start.
Then as you grow older, maybe you want to chill on the business.
So you don't grow the business as much and just keep the existing business and just enjoy the cashflow.
At this point probably won't want to input anymore capital. The business probably should be able to run by itself now.
Or maybe you want to leave the business to your kids so you keep growing the business and teach your kid how to take over the assets when you leave it to them.
Even if you have a large retirement sum, you may want to be able to hand it over to your kids and have them grow it for their kids in future as well.
The thing about it is...
This planning for retirement "business"... needs to be work out. I mean... well some people don't plan for it and just scrape by... I suppose that works as well. Some people think that having kids is "retirement planning" in itself.
But if one wants to live fairly comfortably in their later years, I suppose embarking on this "business" is pretty much necessary.
The earlier they start on this "business" the more they can grow their business without injecting too much of their own capital.
A comfortable retirement is probably one of the more important things to plan for in life.
A typical person would retire around 60-85... Or something along those lines.
around 20-30 years of unemployment depending on how long one lives and the date he/she decides to leave full time employment.
It's a good 30+% of ones' life. Not short.
I think really too little people put enough thought into it and delay planning for it until much later in life.
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