Financial Freedom Planner - Part 1

Hi there, this is HD.

Do you know... That there are 2 ways to do Financial freedom planning.

There is a right way and a wrong way.

Now approximately 99% of the world out there, is doing their Financial freedom planning. But they do it in the wrong way.?And because of that, they will never be rich.

And it is for that reason that less than 1% of the population will be rich at the age of 65. Now the conventional way of doing things. When I refer to the conventional way, I mean the way that financial institutions want us to do it.

Is to start very young. At the age of 20 or 25 as soon as you start to work. Do your planning according to their way, which they are also going to call retirement planning.

And then retire at the age of 65. Or after 60 by using their products that are only compatible with their system. So in effect what they do is they set us up to only use their products. So that we can not retire earlier.

And then there is another way of doing it. I call that the Wealth Creators Strategy.

And by simply following the Wealth Creators Strategy.

It is possible to retire a lot earlier, than the age of 60, 55, or even 50.

Depending on your current age. So what I want to do is, show you both scenarios. And in this reading what I`m going to do is to basically give you a quick background as to where I come from. And then Secondly what I`m going to do is, show you the wrong way.

Because you might be familiar with that, as that is the way it is normally done.

Right, so in 1984 I decided to do my own financial planning for myself. I wanted to be in the position to be able to retire at least at the age of 50.

Unfortunately at that point in my life, I did not know about?the wealth creators' strategy.

And the solution.

I tried retirement annuities, unit trusts, shares, fixed deposits, and endowment policies. Pension funds, provident funds .. the normal stuff. Okay, and I could see literally that it would be impossible for me to retire by the age of 50.

There had to be another way, but unfortunately, I only discovered this in 1987. That was when I was 30 years of age. And I`m also going to take you through that scenario.

And show you the whole process that I`ve gone through, and so in other words?the examples that I`m going to give you?are not only your Financial Freedom planning.

But what goes behind that, so that you can be in a position to retire much earlier or more quickly in your life? One thing that I want you to understand is that I am not a financial advisor.

In other words, I`m not certified, I`m not with any board, and I can't give you advice.

I`m going to show you the way that I`ve done it. And the way that I`m doing it up to today. In fact, I`m going to take on a challenge, because Yesterday was my Birthday. I turned 56 and I said that I could build a new let's call it portfolio.

Whereby literally it is possible to retire within 4 years. And have a passive income of at least R50K after tax indexed with inflation. Over my life expectancy.

Right, I want you to understand that I`m not a financial advisor, I`m not giving any financial advice. I`m here to assist you and I`m here to show you the way that I`m doing things.

In order to understand what a wealth creator is…we need to understand a Wealth Creator's Strategy.

And the Wealth Creators Strategy is the Intelligent use of limited resources to go from where you are, to where you want to be in the shortest possible time with the least amount of Risk.

In other words what we want to do... We do not want to work forever.

So if you want to do your planning…between your 30s and you want to do it till you are 65.

Then I am obviously not the right person to help you. There are financial planners and advisors and gurus out there who can help you if on the condition you want to do it the conventional way. And then they are going to give you all the security.

Because they must be registered with all the different boards in the world. But I don't think that they will be able to produce the results that we are going to?show you.

Now, what is the difference between the conventional…and the Wealth Creator's way?

Or

The opportunity-seeking way?and?the Wealth Creators way?

The main difference and the only difference is…A Wealth Creator is prepared to take full responsibility for their life?and do their own planning.

As for where an opportunity seeker is giving the responsibility he or she has over to someone else. So that, that person can manage their money and hopefully so that they?can retire someday.

In short, that is the principle. So if you do not want to take the responsibility to learn how to do it yourself, then I suggest that you stop this course right now, because there is absolutely nothing that I`ll be able to show you.

But, if you are willing to learn then I`m going to teach that to you?the way that I`ve done it.

Now I`m going to put myself hypothetically in a position?where I`m 30 years of age. And I`m going to say that I want to retire at the age of 40. In other words that's only 10 years.

And I`m going to show you the conventional way.

You won't be able to do it if you go for retirement annuities, pension funds, or provident funds?simply because of legislation.

But you can maybe try shares and unit trust and stuff like that. So if I`m 30, and I say that my life expectancy is 80.

And I want to retire at 40.

It simply means that I need to make provision?for retirement for 40 Years. In other words, from 40 - 80 is going to give you 40 years.

And I have exactly 10 years before I`m going to go on financial freedom. Which to me is Retirement. In other words where I want to be Financially free. So that gives me 10 years.

I`m also going to assume that the inflation rate is 9% over the next 10 years as well as the 40 years?afterwards.

So these are the assumptions.

The first thing that I want you to understand is, let's assume that I`ve got an income?currently of R20K and I want to retire with R20K? in today's value.

Now inflation and interest are there to confuse us. So if I`m 40 now, when I retire or when I want to be financially free. And I take that for the next 40 Years how much money must I have somewhere?in a kitty to be able to offset?in other words where I can withdraw?R20K each and every month if there is?no inflation.

Or if I don't get any interest on my money?

It simply means the R20K over the next 40 Years multiplied by 12 which means that I must have R9,600,000 in cash available right now.

This is what I must have.

Unfortunately, there is something called inflation, and luckily I can get?a 12% in other words a 3% real return on my investment.

If I am 40 Years of age today and I want to do that indexed R20K with inflation over my life expectancy but invest the surplus.

How much money do I need in today's value?

I need R 5,586, 835.26 that's what I need.

The problem is, I am not 40, I am only 30. This is hypothetical now, in the example that I`m demonstrating to you now. This is the figure that I`m going to use.

Now when we index the R5,5M with inflation which is 9%?as well as the income. So if I take the R20K and 12% over the next 10 years how much money will I need by then?in order to be able to go on retirement?

I`ll need per month?R47, 347.27.

And to offset that?I`m going to need something like R13,226,070.91.

Right, so that is what I need. But luckily I`ve got 10 Years to provide in order to get to?that R13M. Remember I`m getting R20K / month.and that's my total income.

So how much, if I`m going to invest the money in equal installments?over the next 10 years?

How much money do I need to invest?at 12% in order to build a capital amount of? R13,226,070?

I need to invest?R57,494.98.

The problem is I am only getting?R20K / month So it is more than double what I`ve got.

And for that reason, these people will come to you and say no, don't plan for?FREEDOM plan for retirement and they will also use the terminology retirement planning instead of Financial Freedom planning.

Right, So when I saw this…at a relatively young age.

I knew that the solution, could not be the solution. In other words, the growth that I was getting on my money?would never be able to help me.

So I needed a different strategy. And that is when I started looking, in fact, it took me a couple of years from 1984-to 1987 before I made an amazing discovery.

And the discovery that I made, is the principle on which the?Wealth Creators Strategy is based. It is the intelligent use of limited resources, to go from where you are to where you want to be in the shortest possible time with the least amount of risk.

That simply says, it is possible and I`m going to demonstrate that to you in later training.

That it is possible by applying this strategy, that you can lower the risk. And by lowering the risk, you are going to increase the growth. And it is the growth on your investment, that is going to make you rich.

OK, so in the next lesson what I`m going to do. I`m going to take you through the process of goal setting. So that we can understand it.

And then what I`m going to do, I`m going to take you through the whole process.

But this time, I`m going to do it according to the wealth creators' strategy. Then I`m going to give you the solution. Based on all the information that we`ve got at that point.

How easy it actually is to be in a position. And hypothetically I`m going to use my current age, which is 57. And show you that it is possible to be financially free within the next 4 years.

With a passive income of R50K in today's value, without using any of the assets that I`ve got or using any security or anything like that. And be able to index that R50K with inflation over my life expectancy?or at least until I`m 80 years of age.

In the next lessons, what I`ll do..I`m going to give you the actual Financial freedom planning spreadsheet as well.

So that by the time that we get to your Financial freedom planning?you will have the spreadsheets and you`ll be able to go with me through it so that you can have a full understanding and know exactly?what is possible and of course how to go about in getting it.

So I`m looking forward to seeing you in the next reading.

For more information on the Financial Freedom Planner