If I was planning on retiring in the next 10 years and didn’t have money saved for retirement, I would be in between a rock and a hard place. That being said, it is not entirely impossible to accumulate millions for retirement within ten years. In fact, its not even unlikely if you get started saving and building your wealth. The catch is, you need to work hard, and you need to hustle. These next ten years before retirement may be the busiest years of your life, but when you’re relaxing on the white sand beach in Tahiti, you’ll find the struggle was worth it.
Before getting into the step-by-step plan of How to Retire Without Savings, I just want to discuss a few important points that may occur to you. Understandably, being older, you may not have a great grasp on technology. That’s okay. Skills can be learned, passion is priceless! To build a business online, the only skills you need are internet, word processing and HTML, which can all be obtained for free online. Everything else can be learned as needed and all of it can even be outsourced.
Some of you are saying “I only have 10 years! Lament! Woe is me!” It may not seem like it but 10 years is an eternity to build wealth. In fact, according to The Millionaire Next Door, most millionaires make their first million dollars within 15 years. So if you get going now and stick to it, a healthy retirement fund is well within your grasp. But I imagine if you build your own business in an area you love, you’re going to be hard pressed in 10 years to want to retire.
Now for the Key To Retiring Sans Savings:
1 Calculate How Much You Need to Retire
The first step is always to figure out where you want to be. If you haven’t done this yet, check out the post Nest Egg Demystified – How Much You Need to Retire. Once you’ve figured that out we can plot a course. And don’t be so overwhelmed. Take that large Nest Egg number and divide it to see how much you need to save per year, month, week and day to retire. It’s probably less than you think.
Example: $1 Million Nest Egg
$1,000,000 / 10 years = $100,000/year
$1,000,000 / 10 years / 12 months = $8,334/month
$1,000,000 / 10 years / 52 weeks = $1,923/week
$1,000,000 / 10 years / 52 weeks / 7 days = $275/day
That’s only $275 per day that you need to save and invest. If you have 15 years, it’s only $183 per day. Really, that can be achieved! Also, check out the How to Manage Money Better Academy where I explain Real Estate Wholesaling, which is a very attainable way for beginners to make over $10,000/month.
2 Start Saving and Investing
Once you know your savings goal, put the pedal to the metal cause you’ve got no time to waste. You’re in this situation today because of bad or no savings skills used previously. This is your opportunity to change that. As you are nearing retirement, you’ll want to consider placing your investments in safer vehicles like bonds and money market accounts. The problem with these investment vehicles is that they rarely outpace inflation. While it could be risky (i.e. showing a loss at the time of your retirement) I would recommend still investing in index mutual funds with about 2/3 of your money and the other third in bonds or money market accounts. For more in investment advice check out the Ultimate Beginner’s Guide to Investing.
3 Find Your Passion
Don’t worry, this isn’t some esoteric article where you find your passion and magically all your worries are erased and you live happily ever after. I want you to find your passion because you are going to build a business and ultimately a life around it. Surprisingly enough, after all the complaining, most people still don’t know what they want out of life.
Here’s some questions to help you find your passion:
What do I love enough to do for free?
What do I do that causes time to feel different?
What do I enjoy doing regardless of the opinions of other people?
4 Build a Business around that Passion
To the average person, the mention of building a business is enough to make them run in fear as they think of competing with McDonald’s and Coca-Cola. Truth be told, a business is nothing to be scared of. As Josh Kaufman puts in The Personal MBA, “a business is a repeatable process that: (1) Creates and delivers something of value (2) That other people want or need (3) At a price they are willing to pay (4) In a way that satisfies the customer’s needs and expectations (5) So that the business brings in enough profit to make it worthwhile for the owners to continue operation.
The reason you need to build a business is because you will make so much more money when you start working for yourself. You cut out the middleman (aka Your Boss) and YOU get to keep all the profits (minus what the government takes). To teach you how to start a business would take a book or a blog by itself so instead I’ll refer you to a couple excellent resources that have already explained it for you.
First off, for the why of building a business, I refer you to The Millionaire Messenger. This is a great book explaining exactly why you should start a business and how easy it is in modern times.
Next for the how, I would like to suggest Chris Ducker’s The New Business Podcast. Chris interviews all the top names in business and shares their secrets and methods to help you build a successful business. He leaves nothing out and the show is nothing short of amusing.
Last, for a through and through business primer, I would recommend The Personal MBA which will teach you everything you need to know about business and in my opinion is more valuable than a $150,000 MBA degree from Harvard.
5 Cash In on your Passion
Stolen from Gary Vaynerchuk, I know. Check out his book, Crush It, which is all about how to cash in on your passion. Once you’re done reading that, start monetizing your business. You have to find a way to sell your product. I recommend learning copywriting to help your selling and you can find here a great free Definitive Guide to Copywriting. Make your leads funnel as large as possible and make it so effortless and easy for people to buy from you. You will be making boatloads before you know it. Definitely in time to retire.
Get Started Now
If you got nothing else from this article, here is an idea that will make you millions for what you already know. If you are close to retiring, you may have a very profitable product inside you. No, not selling your organs on the black market, but that was a good job keeping your eyes open for opportunity. You have been working for a long time and probably have some valuable advice to share. You see, you’re further along than some people in the world and chances are they would pay you to have the knowledge to get them where you are. So create a product that teaches them what you know and market it.
Get Started Now should be the title of my blog as I say it often enough. As with all things financial, getting started now is the most important thing you can do because time is a huge factor. If you know what to do, I encourage you to start doing it today. If you don’t know what to do, read this post again, listen to the Millionaire Messenger, and just get started because at this point any action is better than standing still. If I can help you out, please contact me.
To Your Success!