Recently, Alibaba founder Jack Ma retired from the company, fulfilling a plan ten years in the making. Although he announced a year ago that he would be stepping down from the Chinese e-commerce giant, the plan was actually in his mind for a decade. It took him the ten years to develop and enact his succession plan, reinforce the company mission, and ensure a true meritocracy within the ranks.
Curb Your Spending – if Necessary
So how long do you need to plan your retirement? First, it definitely helps if you are living below your means. If you’re making one million per year but spending one million and a half, you’ll be working to pay down your debt until long past the age you want to stop working. So, reigning in your spending can be a great first step to planning your retirement.
Envision Your Life During Retirement
You also need to know how much money you’ll need to live on in your retirement. If you’ve got a tax deferred income, such as from a Self-Directed IRA, you can plan your income so you’re not caught by surprise. Investing in a Self-Directed IRA is a great way to control your own future, invest in causes and companies you champion, and take responsibility for your finances.
Planning for the Unpredictable
Planning for retirement is something everyone should take responsibility for, from the very beginning of their working lives. Jobs and careers can change, and plans do, too. Even if someone loves working, they’ll still need to plan. Working for yourself and having a Solo 401k or Self-Directed IRA can help cushion the blow of retirement, market ups and downs, or seismic shifts in industry.
So, how long do you need to plan for retirement? How long do your legs need to be to reach the ground? You need to have as long as you can, but it depends on your plan. So work out first what your goals are. Looking to retire from your first career at 45? Then you want to start your own horticulture business? Terrific, gather the numbers, make your calculations, and then you can plan.
You also need to plan for how long you will be out of work – or how long it will be until your new venture turns a profit. Will you live on your Self-Directed IRA income only? Or will you also start a bee business? How much capital will you need to live comfortably and also create your new initiative? How much money do you want to make per year, and what does your spending look like?
Summing it Up
Living below your means will enable you to get your finances ahead of the game more quickly. Once you know your retirement number, you know what to work towards, and you have a real goal in mind. So plan your work, and work your plan, and save to your goal. Plan on living a long life and make sure you have the financial wherewithal to do so.