Three Rules: How to Build Wealth and Keep It!
- Spend less than you earn…and save the rest
- Stop losing money: Using indexed strategies (losing no money when the market goes down) will protect you from losses you can’t afford to recover from over a 28-year period. Renovating Retirement Episode 005 teaches you about this concept
- Stop paying taxes…at least grow your money in tax-free growth options explained in Renovating Retirement Episode 026 & Episode 027
If you do these three things you will accumulate wealth. The more you save, the faster it will happen. Do not try to accelerate and pay off your mortgage! This strategy has been disproven and will only hurt you. Read my short 27 page book on why not to here:
“Two Ways to be Debt Free – Mortgage Planning: Part 1”
Make sure to have three types of money before you retire
- IN-Case Accounts – urgency and emergency funds. Listen to Renovating Retirement Episode 039 to learn about how to use IN-Case Accounts.
- IN-Come Accounts – when you stop working you lose your paycheck. Don’t replace that with “I hope my investments do well enough for me to pay my bills” like the Joker Brokers want you to do. Buy a lifetime paycheck once you’ve won the game of saving enough to retire. You can learn more about IN-Come Accounts on Renovating Retirement Episode 040.
- IN-Crease Accounts – whatever money is leftover after setting aside your urgency and emergency funds and buying a lifetime paycheck, you will begin to grow your income, and it doesn’t need to be the stock market. Listen to Renovating Retirement Episode 041 for more information about IN-Crease Accounts.
As you are saving for retirement and working with professionals to stay retired, make sure you are holding THEM accountable and stress testing their suggestions. Learn more about stress testing your financial plan on Renovating Retirement Episode 055.
Once you’ve saved money using The Three Rules, make sure you have The Three IN’s. Then make sure it passes The Five Lives of Retirement Test which will give you a sure-fire way to have an awesome retirement…..for now.
Things change! Keep the plan up-to-date continually with the MERIT Planning Model. Learn more on Renovating Retirement Episode 018.
Contact me here if you have any questions at all regarding your retirement plan or how to hold your advisor accountable.