Of all the things you must learn to manage in your life, cash flow may be the most difficult. Saving and investing takes effort and discipline. Some people even consider it painful. There two types of pain, the pain of discipline and the pain of regret.
Do you know the answer to these questions?
a. What return would you have to earn on your savings and investments for you to retire at your current standard of living?
b. What is the minimum amount of money you need to be putting away each year to enjoy your present lifestyle during retirement?
c. How long will you have to work before you can retire and be able to enjoy your present standard of living until your life expectancy?
d. How much will you have to reduce your present standard of living to make your money last to your life expectancy?
What you don’t know can hurt you!