You might have seen some TV ads recently where people literally carry their retirement 鈥渘umber鈥?with them. Each person鈥檚 number varies Wholesale Baseball Jerseys , but it鈥檚 usually in the $1-2 million range.
I like these ads because they reinforce the importance of setting a measurable retirement goal. But merely having a 鈥渘umber鈥?like the ones in these commercials isn鈥檛 enough. Why not? Well, in the first place we don鈥檛 know what the number represents. Is it net worth? Is it investable assets?
Second, how does that number pay for your retirement expenses? In our previous article we discussed how retirement expenses can be grouped into two general categories: lump sum purchases or ongoing expenses. Lump sum purchases include such things as a house, cars Wholesale MLB Jerseys , possibly a big trip or vacation. Ongoing expenses are recurring living expenses - monthly utility bills, food and clothing, regular insurance payments, etc. Somehow your 鈥渘umber鈥?has to cover both categories of expenses. But how?
Some assets generate cash flow and some don鈥檛. That鈥檚 the missing ingredient.
Retirement 鈥渘umbers鈥?usually refer to net worth Wholesale Jerseys China , which is a measure of your wealth. Let鈥檚 say your number is $1.5 million, and it represents your net worth at retirement. There are many combinations of assets and liabilities (debts) that result in a net worth of $1.5 million but to keep things simple let鈥檚 assume further that you have no debts. So you have $1.5 million in assets and no liabilities. You are a millionaire with no debts. Nice going! But we still need to make another assumption - about the composition of your assets.
Some assets generate cash flow Financial Planning and some don鈥檛. That鈥檚 the missing ingredient. Cash flow-generating assets can be used to pay for ongoing living expenses. And if your assets generate enough of a regular income stream - enough monthly cash flow - to pay for both your ongoing expenses and your periodic lump sum purchases, then you will have become financially independent.
That鈥檚 really the ultimate goal, isn鈥檛 it鈥?Financial Independence Having a large net worth 鈥渘umber鈥?- having wealth - is good. In fact Wholesale Jerseys , it鈥檚 necessary. But it might not be enough to pay the bills. For that you need assets that generate cash flow. That鈥檚 even better.
But why wait until retirement to acquire assets that generate cash flow? Wouldn鈥檛 it make sense to start accumulating them when you鈥檙e younger?
Keith Wheelan - About Author: Keith Wheelan, is a professional financial planning advisor for "Cash Flow Navigator" helps to empower members of cashflownavigator community to successfully plan for and achieve financial independence. for more info visit UAV Autopilot Industry -Global Market Size, Types, Demand Cheap MLB Baseball Jerseys , Suppliers, Applications, and 2025 Forecast Research Report
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Major Points from Table of Contents 鈥?p>
1 Market Overview
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