Last weekend I attended a seminar that teaches a very important concept. If you plan for retirement, even if you can more or less calculate the amount of your monthly expenses living the lifestyle that you desire, you can never truly be sure if the monetary amount that you are saving or investing for that future will be enough. That's because of 1 major factor: you don't really know how long you will live.
The only way to ensure that you will not outlive your money after retirement is to generate a continuous stream of cashflow - passive income that is more than your expenses each month which continuously flows into your account. And we need to build that cashflow now while we are still earning our income.
There are 4 classes of assets that can generate cashflow:
2. Paper assets (Stocks, unit trusts etc)
4. Alternative assets (precious metals, jewellery, antiques, art pieces etc that appreciate in value)
Although good to know, we still have to learn how to invest in one or all of the above classes to generate positive cashflow that will last for a long time. This is where books and seminars play a role in enhancing our investing skills, so that we can build a goose that will continue to lay golden eggs for our golden years.
Don't just earn an income from your job and save for retirement. Build or buy assets that will generate indefinite cashflow, today.