Can You Afford To Retire If You Win The Lottery?
The sign on the whiteboard in the lobby of the bank made me stop and shake my head.
“Retirement units paying $166/mo. Inquire today!”
What’s a retirement unit?
If you give my bank $100,000 of your money they give you $166 a month in interest. Then the government taxes it. Then you get to buy half a bag of groceries with what’s left.
Retirement sounds like a scam, doesn’t it?
Pretend you win $1,000,000 in the lottery. That’s ONE MILLION DOLLARS.
Can you really afford to retire?
Make It Rain Paper Up In Here Yo!
That million in the bank pays about $1600 a month before taxes. Yes, I know you can make a higher rate of interest. You can lend your million to good old Uncle Sam and earn half what my bank pays. You can lend your million to Aristotle and the government of Greece and make waaay more. Just don’t hold your breath. Interest is simply a reflection of risk to your principal.
What can we learn from this?
a) if you can create a simple $150/mo sideline income in your business, it’s like having $100,000 in the bank.
b) Baby Boomers might be in a little trouble when they do the math about retiring
c) you can predict a massive surge in grey haired people doing second jobs
d) you can predict a massive surge in micro-entrpreneurs in the next 20 years
e) your entrepreneurial brain and ambition is worth a lot.
f) never pay retail again. Boomers will be selling their junk to buy groceries in retirement.
Don’t let an exercise like this discourage you in any way. Just resolve to create additional sources of income in your life. It’s fun and relatively simple once you get the hang of it.
How can you create a new $150/mo in your business?
What’s holding you back?
What’s your #1 idea right now and when will you take action on it?
- add my feed to your RSS Reader
Hey, you could even hit the +1 button if you wanted!
Related posts:
- Did You Try Trading For It? Money is cotton paper with pictures of deceased politicians. Why...
