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So not super
29 May 2013
At what stage do most people take a serious look at superannuation, longevity and future lifestyle? My answer? When it's generally too late to do anything meaningful to preserve one's dignity.
In July 2011 The Australian newspaper reported that a $500,000 superannuation nest egg was insufficient if you chose to live comfortably, retired at 65 and lived to more than 89. If you retired at 60 with $500,000 in superannuation, it will apparently last until you are about 84. According to a research study conducted in 2010-2011 by Challenger in conjunction with figures from the Australian Bureau of Statistics and ATO showed that the average amount of superannuation for Australian males at age 60-65 is about $198,000 and females is $112,000.
One solution to a comfortable retirement comes from planning an income stream that includes annuity income from as early as possible. In addition to income that results from trading time as the majority of people receive their income through traditional employment methods that are time for income based, annuity income involves establishing revenue streams that come from non-time traded sources.
Saving for a comfortable retirement is a myth for the vast majority of people and the sooner this is realised the better outcomes many people can have for a comfortable retirement. If let's say your targeted income for retirement is $10,000 per month, and your current assets excluding your home amounts to $150,000. If you had 15 years to work, and an estimated post retirement lifespan of 20 years and if inflation is 4% and after tax return on investment is about 2%, you'd have to save $6,807 per month from now if you want to also leave $150,000 to your family.
The only way to stop worrying about a lack of superannuation and achieve financial prosperity is to build a business that will provide cash flow for you and your heirs on a long terms basis. To many this sounds risky and unattainable, and in my experience as an entrepreneur only 2% of people appreciate how easy this can be.
I laugh when I recall hearing Donald Trump addressing an audience in the US a few years ago and his response to being asked what he would do if he lost the lot and had to start over. He said something along the lines of that he would find a successful network marketing business and market it like crazy. That's not the funny bit by the way. What's also not funny is that the response from the audience was to ridicule him. It's also not funny that he replied to this ridicule by saying, "that's why you're down there and I'm up here." What is so funny is that someone with obvious success, someone who does things in business that only 2% of people are willing to do is not taken seriously when in my mind he is offering a brilliant idea that used ethically and professionally is life changing and incredibly positive for generations and generations. I also laugh because countless times I've been asked how did you leave employment at 21 and start your own businesses, and when I share my story receive negative sentiments. I have learnt that to be successful in business means being prepared to do what many people will never do. And the reason why they will "never" do what it takes has nothing to do with skill, education or intelligence. People find between their left a right ear enough negative self talk to reinforce negative beliefs that are the paralysis for success. We can all create these stories with ease, it's a choice to rewrite your future with something more compelling. If you were to write your own eulogy today, I suggest for many people it would say "should have" on every line. What would it mean to you if instead it said "did."
What all smart business people strive for is to have both time and money. Surround yourself with the best people, lead and delegate effectively, give quality, reward and you will prosper. This is the formula for big business and it's what the 2% know. I can share with you that by following the fundamentals of a network marketing model, investing less that $2,500 joining a strong, reputable network marketing business, knowing your ratios for marketing approach and sales volumes you can build ten of thousands of dollars in monthly annuity income in the space of less than a year and grow this continuously based on consumers continuing to purchase quality merchandise by what today is fast becoming the most preferred shopping method in the world, on-line. This small business is big business without the risk. Typically not a bottomless pit of investment, no stock risk, no overheads and no staff. Partnering with the right company in a growth industry in particular one publically listed on a stock exchange for transparency of assets and incomes and ratified by the World Federation of Direct Selling Organisations is less risk than expensive rent in a shopping centre for your new small business or an $500,000 investment in a franchise that you'll have to work in yourself to realise any profit. Most people I have worked with in the network marketing industry are in profit within 3-4 months, and the annuity income grows from month to month and year to year, even while they sleep and take holidays.
So back to the not so super superannuation. Clearly it's a personal choice as to whether annuity income is going to be important to you or not. It may be a good time to talk to people you may know who are nearing retirement and ask them some questions about how they are feeling about their retirement security. Will they be travelling the world or watching it on TV?
Lipstick Learning is an initiative of Sydney based business leader & entrepreneur Madelaine Cohen. Sharing information and joining forces with people who choose to lead. Madelaine has more than two decades of inspiration from her businesses in consumer products, sports marketing and healthcare. She takes a leading role in helping people transition from employment or trading time for income to their own business in the health, beauty and anti-aging sectors. Madelaine works with business models including a 10 x 10 process and 10:6:4:1 ratio strategy for generating profit of $100K or more per annum in your own business.
Lipstick Learning is an initiative of Sydney based business leader & entrepreneur Madelaine Cohen. Sharing information and joining forces with people who choose to lead. Madelaine has more than two decades of inspiration from her businesses in consumer products, sports marketing and healthcare. She takes a leading role in helping people transition from employment or trading time for income to their own business in the health, beauty and anti-aging sectors. Madelaine works with business models including a 10 x 10 process and 10:6:4:1 ratio strategy for generating profit of $100K or more per annum in your own business. Why? Inspire people to lead in free enterprise & together we can create lifetimes of health and happiness.