We’re in the first year of a new decade, and you have a great financial challenge ahead of you in the next ten years. Now, more than ever before, you have to figure out how you will create lifetime income for yourself and your family. Sustainable income, at the level you want, to live the life that you want, is fundamental to prosperity and any hope you may have for financial freedom in the years to come.
Why this issue, and why now? Because the landscape of the job market and the overall economy has changed. Some of you may have jobs right now. You work for an employer. And someday, you will have to retire from that company, or change jobs, or perhaps you may even lose your job. The corporate contract when you worked for a company for most of your working years, has been broken. There is no job security any more. Young people today, even mid-life earners in their forties, do not expect to work for the same employer all their lives. I have two nephews in the computer field, and each of them (ages 42 and 39) have already had a minimum of four jobs.
And, for some of you, working for someone else may no longer be an option—like my 56-year-old friend, who got downsized out of a 20 year job with a pharmaceutical company, and had to go back and retrain to become a teacher. She now earns less than half of her corporate salary of four years ago.
What you may have to face, and it may be the best thing that could happen to you, is that you may need to generate your own income, in a business you create, offline, online, wherever you can find a market with a customer who needs what you know, or skills that you have. And, you also might realize that you may well be working well past the age 65 normal retirement years that many baby boomers wonder if it is a realistic deadline for stopping their earning years.
Why might this be the best thing in your financial life—to have to create your own business? Because it gives you control of your financial destiny. Let’s face it. You may well live into your 90’s or even past age 100. If you’re 40 now—that means you have 60 more years to fund if you live to be a centurion. If you want to earn $50,000 a year, and your government pension brings in only half that. Do you have e $500,000 saved in tax-deferred accounts that could generate you $25,000 addition income at a 5% return?
Are you counting on an inheritance for your parents to supplement your lifetime income nest egg? Do you have any kind of corporate pension to supplement these other sources?
How will you sustain a lifetime of earning money to support your lifestyle.
These kinds of questions pose a real challenge for many of you. It’s important that you take a look at your financial situation right now, and create a lifetime income plan.
If you have questions at how to do that, write to me at firstname.lastname@example.org. We will create a life plan and a lifetime income plan for you.