In the past most everybody never retired. They died. The average life expectancy was much less than it is these days, and there were no financial planners around to help many people save up enough to quit work. As recently as the 1960s, if you did manage to save up enough funds to retire, youd be lucky to live another 5 or 6 many years before you kicked the bucket. This made financial planning for retirement a little easier because you really only needed enough income for a few years.

Nowadays, if you retire, chances are you can live forever. Well, it can seem like foreverespecially if you havent saved up enough money. It is a daunting task, attempting to set aside enough money to supply an income for 25 or 30 months, in the 15, 10 or 5 decades you have before you retire. We say this because most people dont get really serious about their retirement planning until they hit 50and realize they had wanted to quit work at 55!

This is the standard model that has been followed since we began living long enough to bother with retirement savings. You set aside enough cash to cover things off at some future distant instant. You build the nest egg and then hope it lasts, and the financial planning community is right there to help you. And yet this is not how the most successful everybody in our community do things at all!

Still, most all the people are busily trading their instant for their funds . As an employee, you are limited by how much measure you may actually devote to your job, and you are limited by how much instant you want to devote to your job. Time you give to your workplace is time you do not get for yourself. Its similar for self-employed people such as our selves. The more successful we are as financial advisors, the more in demand we become, and the less time we have.

Retirement looks pretty grand when youre an employee, or a self-employed person. Youll have the funds coming in, and the instant for yourself. The problem is that it is an awful long way off. Is there another way?

The first measure Rick read Rich Dad, Poor Dad, he just got irritated. After all, this was the book that pointed out how he was locked in the self-employed cycle where success leads to less free measure . And he likes his free time. However, author Robert Kiyosaki also proposed an out. Its called passive income. Passive income is income you have coming in to the household that you dont really work for anymore. The key is that it is constructed to happen in the near future instead of the distant future.

Since reading his books we have begun to change our financial plan. Instead of continuing to organize our finances around future income for a distant retirement, we are re-orienting things toward near-future passive income and financial freedom. We have been doing this by purchasing income-producing real estate and by looking to beginning internet businesses.

The success of our new passive income plan remains to be seen, but it is interesting to note how changing our finish result from retirement to financial freedom has completely altered the road we are getting. These two goals are NOT the same. When you contruct a retirement nest egg you are looking to draw an income from it at some future instant. When you are looking to attain financial freedom, you are looking to purchase or create assets which provide you with passive income right away.

Should people be changing their financial plan? Of course not. For one thing, many many people hate the idea of being landlords, and many others do not have the stomach for business, let alone the technology business. Retirement planning is still needed. RRSPs, mutual funds, and other longer term savings programs still have their place. There will always be employees and self-employed everybody who rather like what they do and are quite okay working until their retirement age.

All the identical , if you are wondering if there might be a better way to ensure your future financial wellbeing quicker , perhaps you should pick up a copy of Rich Dad, Poor Dad and get irritated. Either way, it will most definately turn out better for you than it did in the past.

In the past most people never retired. They died.