I am running a workshop on money since last December, where I deconstruct the process of making money and managing it efficiently and thus multiplying it. So in the process of selling that workshop and on the workshop I have seen people who ask me why we should do this. That is a good question, indeed. I also noted an interesting point that most people even the well-educated and well informed group have no clue when I bring up the topic of retirement.
The process of making money is very systematic and sequential and retirement in that as far as I see is just a choice. I would like to put some stats in front of you. The social security act was passed in USA which first determined the retirement age would be 65. Most of the countries made retirement law based on this act passed by US. That law was passed on 1935, while America was experiencing the harshness of the great depression. And it is important to note the average life expectancy at that time was 61. This is how outdated we are. In this context people know retirement is must but have no preparation for it. Generally, if I ask for a road map for the retirement, it goes like this.
Good graduation —> Job at a reliable company —> Get promotions regularly —>provide education for kids, buy a house and some gold—>Retire—>Play with the grandchildren.
I ask then what about money after retirement, they usually believe their children who are grownups would take care. Will that be the case anymore? If you see the stats I provided in the second paragraph, the retirement age is set well beyond the life expectancy time. But now things are changing dramatically, and the average life expectancy has gone up to 10 to 15 years more. So the process which was handed over by our parents and ancestors to make money will not work. Even if we apply the principle of “beginning with the end” given by Mr. Covey. I.e. starting by planning for retirement, things will not work.
So the new way is to
Start early —>have multiple source of income —>invest it diversely —>aim for constant cash flow —>run a business —>build a community—> if physically worn out after a period of time, share your knowledge.
There is no need you have to be confined just because you are 60. It is time to rethink retirement and have a fun filled quality life after 60.