The 3 types of Retirements

Retirement is a crucial issue that anyone should be planning out for, no matter how busy life becomes. By definition, this is what the merriam-webster dictionary defines retirement:

Definition of retirement

1. 1a :  an act of retiring :  the state of being retired 
   b :  withdrawal from one's position or occupation or from active working life 
   c :  the age at which one normally retires "reaches retirement in May"
2. 2 :  a place of seclusion or privacy

From my own study on business & investments, it seems that there are at least 3 types of RETIREMENTS:

1. Minimal or No retirement
- most have not thought about retirement at all, until it is too late
- after "retirement age", they get their ''retirement" from the company or institution they work from, but then they still NEED & HAVE to get more income so they have no recourse but to CONTINUE to work [or depend on their children, which may be OK in the eyes of some people, but may look like be a burden to others]
- you are forced to work or look for other sources of income, because we dont have enough funds, and we are burdened with everyday expenses called "living"; thus, you will need to have recurring income for monthly expenses dependent on the quality of life that you want (whether simple or extravagant)
- unknowingly to some, this is what we need to be prepared for as early as college graduation

2. Retirement at age 60 or 65
- the most common age of retirement
- some Filipinos build proactively for this, but most dont understand that "retirement is not a function of age, but of income"
- they build for this, through different ways: SSS, pension plans, insurance, real estate, asset  accumulation, investments, royalties, stocks, dividends, profit-sharing ventures, and other options
- it is good to retire at the ripe retirement age, at least they have planned for it, and have enjoyed most of their working life (assuming they have a good secure/stable profession or good corporate life)
- the only REAL question now is how much they will be getting from their retirement plan: will it be enough to sustain their everyday living, or their current lifestyle? To know the answer to this, simply ask people who is on the verge of  retirement, or past that, then ask educated/intelligent questions. YOU WILL LEARN A LOT BY ASKING THOSE WHO HAS GONE THRU MOST OF THEIR LIFE YEARS BEFORE YOU.

3. Early retirement
- these are CHOICES made by proactive, very resourceful people; people who investigate, diversify and research ways to build their portfolio or their assets, or at least make a conscious effort to get to their retirement as early as possible
- "daig ng maaga ang maagap"
- some are able to retire as early as their 40's, or even earlier
- a well-known businessman Robert Kiyosaki retired at age 47
- what does it mean by early retirement? You can continue to not do anything, sleep or do anything you want, but still earn enough income to sustain your needs (and wants), depending on the quality of life you CHOSE, not the life you are FORCED TO DEAL WITH
- these are people who prefer this choice than the usual 60 or 65 retirement age, and are very wise to do so

Now, the million-dollar question:
- when you retire, how much earnings do you want to have? how much monthly income?
- do you have children or some circumstances making it hard for you (health challenges, other priorities, etc) which limits you, or requires you to suspend your retirement plans so that your immediate needs must be prioritized first before your lifetime goals or longer term plans?
If yes, the question now is: when do we start putting it off (retirement), and start planning & building for it?

RETIREMENT is important but not urgent (which is classified as a QII activity by Stephen Covey on his time management quadrant, from the book "The 7 habits of highly effective people"),  if you are still planning it out. Probably 80% of Filipinos does not have any plans for it until it becomes too late. Most have not found a real purpose.

The real question really is not HOW, but WHY?

If you have a boss who is retiring soon, it is best to work closely with him/her. Not because you want to replace them at their position, but because you want to learn what kind of life you might have once you get to their age, and start planning ahead. You need to have a plan - your current plan at your current work/profession, and your "Plan B".

Ask your life's biggest questions NOW, so you won't have to regret later.

Good luck on your business / investment ventures & adventures - and your future plans for retirement!



Picture credits:
http://pioneerinstitute.org/wp-content/uploads/retirement-next-exit-1024x567.jpg
http://s2.evcdn.com/images/edpborder500/I0-001/038/123/981-4.jpeg_/opsrp-oregon-public-service-retirement-plan-81.jpeg
http://www.ihatedroz.com/wp-content/uploads/2008/12/out-of-toilet-paper-plan-b-300x225.jpg
http://www.tellus360.com/wp-content/uploads/2012/08/what-would-macgyver-do-on-empty-toilet-paper-roll.jpg

Year-end Escapade

I just wanted to take this short moment to reflect a bit on the year that has just passed. Recently, we went to Palawan, to Coron - to be exact. There's not much words to say.. Coron is simply a super-treasure of our own Philippines! This is definitely one of the best moments in my life so far (and one of the best years, even if I have not yet fully reached my goals -in terms of monetary/financial/business goals).  It was simply a great rewarding, liberating, relaxing experience!

My sister made it happen, she was the one who initiated everything! And I'm grateful to her, & my girlfriend - for a time shared together that was priceless, memorable & inspiring in a lot of ways!

Isn't it just right that we reward ourselves, big time, sometimes? When we have worked so hard all our lives.. that even if we feel we are still not where we wanted to be: we deserve a pat in the back from time to time. This "pat in the back" may even serve as a positive CHARGE or a SPARK that can make us realize & further crystallize our dreams & goals in life, to inspire us, & help further understand what is (or who are) 'most important' in our lives & careers.

One thing that my vacation proved (at least on my part) is that sometimes we can have boundless energy at certain points, even with only few hours of sleep! Maybe it was just the coffee, or the excitement for the new day ahead. But what I've found out is.. We don't have to be chained by the idea of our regular routines where we say to ourselves "I have to go to the gym this often in order to be FIT", or "...in order to have enough energy at work". It is important, but it is not 'living the life' or is the entirety of it. The routine and discipline is still important, it's just that we got to learn how to prioritize our activities & schedules better to be the most productive we can be. We have to understand - and learn, or re-learn, our PURPOSE!

Sometimes, it helps to have a big-picture perspective of things, like what this vacation or year has done for me - helping me reflect, and enjoy life as it happens - but still have a clear vision of what lies ahead.

Some other things that has been cleared up for me - on my reflections during this private time.. I got to have clarity about what has transpired the year before. In terms of my career or professional life so far -- what I understood clearly now is: what really is it that we want or dream in life? Is it travels, or vacation? Is it time with the loves of our lives? Now, how can we really ensure we get the quality time - and not just have the money?

Kiyosaki's principles helps us to understand that being just an E or S (in the ESBI quadrant) is not the answer to all these questions, and that there are a lot of other options, or things within our control, to improve our being. We have to face it – what is it, that we really want, really? If we do just simple things, or be in our comfort zone - think about what about our parents now... when they grow old, when the time comes they would need us more? Will we be there to help them get past thru that phase in their lives - giving back the love they gave us during our early childhood & teenage years? How about our children, when we have a family.. Will your children be contented with whatever it is we offer them - how can you give all your love to them, without getting burned-out, and not expect anything more in return (isn't that true human love?)? And not have to worry for ourselves, as well, in the future - when we finally get old?

The answer is simple. The fact is, however which way you see it - we need MONEY in this physical world. We are a physical being. Yes, we are spiritual, but that's not the whole end of it.

It really is clear to me now - that is the simple fact in the life that whoever has created all things has given us. But the other part of it all is... what I've found out so far is that IT IS POSSIBLE to reach our financial goals and dreams, no matter what status we are in now or whatever background we came from.

We can. We just have to change our way of thinking. Raise it up to another level. Change our mindset. Change, and understand another different perspective.

 Entrepreneurship is the key!

Financial freedom is really the way to be able to have more time, more money & more energy -- you just need to find that right vehicle, the right system, then just do the work, learn thru it all, stick to the plan, fight thru the pits & challenges of life and human nature, as well as learn to lead others.

Whatever your reasons may be - be it for Love, Freedom, or Ego (I read that from a book, shared by friends in my business community).. You have to find your "why" and let it burn deep down in your gut! Because that burning desire will propel you to heights you've never thought possible before.

Point is.. we really need to diversify: nowadays, just having a job/employment is not enough. Think about it and reflect hard: you can't work all 40 years of your life, and expect to say "I have a fully lived life” at the end. There are so many challenges in our current times now happening, and there's still a whole lot more challenges ahead - with the inflation and all. You got to be prepared!

Ask yourself - what type of life do you really want? what really is your dream? we only have 1 life, if you got 1 sure chance to really change it - how would you design it? what would you do? What if at some point, following what Robert Kiyosaki says in his principles-filled books - you found the right vehicle, be it a business or investment: and get to retire early? What would you really do with the money/savings (passive income) and time?

The one true fact is: DEATH is a certainty. Yes, this is the REAL HARD fact. This is not sales talk. It's not just some marketing shit. If you reflect really well - think well, and think more long term - you can do A LOT in 2-5 yrs, or in a shorter amount of time (especially if you work with a team). You can achieve more than the ordinary, if you just put your mind to it, learn the basics of shifting from the left side of the ESBI quadrant - to the right side, where true PASSIVE income can be found. If you can shorten that time, work well with others, learn the proper skills - leverage your time, learn to work in a team concept - you can gain so much more.

You just have to study, and observe - find mentors who are willing to help you back. Or, associate with real people who have achieved real success, learn from their strategies & techniques - and mindset/approach, how they have achieved some degree of financial independence. Talk to them, counsel or get coached if you can (I'm not even sure if you can get some coaching for free, a lot of mentors and so called success-gurus force you big fees - so that those fees are actually now becoming their main source of income, instead of providing real value or a real asset you can build yourself).

In closing, all I am saying is - understand the facts. True financial independence, early retirement, or just simply achieving good/great wealth (you will be the one who will define this) - it all starts with you. If you think it is possible, change your way of thinking - then you have won half the battle.

If you have low belief, in yourself and in the teachings of principle-centered mentors or books - you still have a lot to overcome.

Start the journey now. I'll end with the saying: every journey starts with the first step.

Again - start your journey NOW. I made it myself at some point. I made a bold move to get out of my previous work at one point, out of my comfort zones, and tried some or checked some other options. That's why I started this blog. This is the story of my journey. Now, start yours. It will be well worth it.

Start now. This is not someone else's journey. It's your own journey, your own dream, your very own life. Own it.

Cheers for the new year!