Stop Working Soon
After you have figured out how much money you need to retire,
you are stuck with one major problem - well two: How long will
you need that money and where are you going to get that money!
Well both have the same answer in a sense. You find residual
income that is at the very least consistent, but possibly
growing. Residual income by definition is recurring income that
comes, usually without recurring efforts. For example... if you
build a house and rent it out. The rent you receive is residual
in that is comes in regularly and without extra effort beyond
the initial construction. Once you pay your maintenance costs,
then you have your residual profits. You will have that income
as long as you keep the house - and you can keep the house as
long as it brings in a profit - ideally as long as you live!
So besides real estate what kinds of investments bring residual
income with minimal risk and fluctuation? Well if you have
enough seed money, you buy dividend paying stocks or income
trusts. You can easily research the dividend history of a
company, look for ones that pay consistent dividends year after
year. Banks and insurance companies are good for this. If in the
last 20 years they have never missed a dividend you have a
candidate. If they have gradually increased the dividend payout
over time, you also have a solid winner. You don't really care
what the stock price does, you want to know how much dividend
you can depend on from the company.
A $500 000* dollar investment in a diverse group of dividend
paying stocks can let your retire on perhaps $50,000 per year*
(* These numbers are just examples not real or validated.) If
$50k is enough for you to retire on and live on for the next
however long then you know how much you need to accumulate
before you can retire. Another benefit of dividend income is
that the tax rate on investment income in most western countries
is much less than earned income taxes. So you get a break in all
directions.
I recommend that you look into some great online income
generating businesses. Maybe you won't make millions - that's
possible too. But if in the next few years you can make more
money than working could get (unless you are an E*ron CEO) - and
you continually re-invest that in a residual investment vehicle,
you could retire real soon. Your online business would also be
residual and expanding and reinvesting part of that income into
other areas would create multiple streams of income.
But if you are like me, the first major hurdle is how to come up
with that initial investment. Well you build a business that
requires less investment. Then you use the income from there to
invest in other residual income sources. Internet Marketing is a
great place to start with opportunities growing everyday as more
and more people come online. It's easier than you think, but
requires some action on your part. The best thing you can do is
find a mentor - someone who has done it before and is willing to
help you get started. Don't umm and haw - the worst that can
happen is that you don't make all the money you thought you
would - but you have made more than you would have if you did
nothing, and depending on the kind of life you have that little
extra may be just enough!
Batsirai Chada (Author and Friend) Learn even more Web marketing
concepts, all contained in a FREE COURSE at
http://www.internetprofitmentor.com There you will find videos,
ebooks, and everything to help you make a living online.