Why You Need To Be Financially Independent: Series #2

April 26th, 2007

Why You Need To Be Financially Independent: Series #2

In this series I’ll be explaining what I believe will happen to families and individuals if they retire without being financially independent.

You can choose to believe me or refuse to accept these beliefs, but either way they are true. My goal is to put forth the best information I can to prepare people for what’s ahead of them. After that, it’s up to you.

The Danger Of Not Being Financially Independent

According to Fidelity, the average amount in a persons retirement account is a measly $61,000. Considering the fact that you absolutely need about $12,000-$15,000 just to get by in a given year at the lowest level of poverty, these people are in for a serious awakening when they retire.

They are relying on Social Security to help them survive through the times which they will refer to as their golden years. However, for the majority of people in the next few decades, their golden years are actually going to turn out to be something more along the lines of the Dark Ages.

Although Social Security was a great idea when it was first signed into law by Franklin D. Roosevelt, the implications it has for todays society has changed drastically. With the baby boomer generation retiring, there isn’t going to be enough money for everybody. Unfortunately, most people didn’t think anything like that could ever happen.

When Social Security eventually falls through, 2 things could happen.

Millions of people of 65+ years are going to be working until the day they die and never get to enjoy retirement.
The rate of homeless folks in the country is going to skyrocket, and poverty is going to be a major issue.

Even for people that are middle-aged now, this has major implications. Most people, my father included, think that Social Security is going to be a long-term solution to living a happy retirement. Although I’ve preached to him many times about it he still doesn’t believe me, probably out of fear that I’m correct. He just doesn’t want to accept it.

By looking at the facts and listening to many top economists around the country, there is a high probability that what I’ve just said is in fact correct. I honestly hope that I’m wrong, but what is the point of hoping that some kind of miracle will happen? You’re much better off getting started on creating financial independence for you and your family than relying on the government for anything – period.

Now on the other hand, what if your investments were making you just as much or more than your job was when you decided to retire? You could then live the same lifestyle, but have even more time to enjoy it!

Once the ball gets rolling, it’s hard to stop it. Compounding is a fantastic thing, which is why you need to start now on your quest to be financially independent. It’s amazing how much of a difference just a few thousand dollars or a year can make in how fast you accumulate money.

In my next article I’m going to talk about some of the things I suggest you look into so you can start to build your financial empire. Some of them I’m already involved in, some of them I will be involved in shortly but have studied them extensively. Everything is different for each individual person.

If you’d like to learn a lot more that is beyond the scope of this blog, please read “Why We Want You To Be Rich” by Donald Trump and Robert Kiyosaki. It will open your eyes up to the tragedy that’s about to happen in the next few years.

Your Perfect Life Awaits,

Jeremy

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