Financial Freedom Planner - Part 3

Before I`m going to give you the spreadsheet so that you can do your own planning.

Perhaps what I want to do is take you through the normal financial planning where we going to take a look?at what's going to happen in case of disability or death.

Also then?financial freedom and retirement. Now your financial freedom planning and retirement planning are exactly the same things.

The only thing is, you are going to retire at a much younger age. The moment that you follow the financial freedom planning strategy because under normal circumstances in South Africa, you can not retire before the age of 55.

Let's quickly have a look at how I can use this?piece of information in front of me.

In other words, the financial freedom planner to see what I should do.

Of course, if this is a scenario, where I`ve got nothing else. This is the only thing that I`ve got. I haven't made provision for any death cover or?disability cover and I do not have a pension and a provident fund. Group life insurance and stuff like that.

What can I do, in order to see what's going to happen at death?

If I look at my situation if I should die today.

?Then I can take out a life insurance policy. As an example of R4M, that means?that my family would be in the same position that I was going to be if I`ve got the money (the R4M) and I would go and buy some?property as an example.

But I need to make provision for some other costs like estate duties and things like that.

For that reason, I would go to my broker and would ask him for a quotation for a policy for?pure life insurance of R5M. It`s really that simple.

The 2nd thing that I would do is to see if I could get?R4M worth of disability cover.

Permanence disability cover. The reason why I would want the?R4M disability cover is. If I should become permanently disabled, then I can simply use the R4M?and buy the property and I`ve got the R20k/ month?income indexed with inflation.

In terms of Financial Freedom planning. There are actually only 2 ways that I can go about achieving this goal. The first is to start a business, that is going to give me more than 64% on my investment?on the condition that I invest an R1k / month.

In that business or reinvent that and get growth of 64%.

And the 2nd way that I know of, is to go for a property according to the property pro-investment way. And that is literally the only 2 ways that I know of that one can get easily a 64% growth.

So it is actually a very straightforward plan.?Now the moment that you`ve got more competency. I`d like to show you another trick let's say that you can do.

If instead of getting a 6%?which is more or less the norm that people are getting at this stage.

With a little bit more expertise?that you will learn in the investment module.

Say, for example, you can get a 10% yield?then suddenly you are going to find?that you need a property of only R2.4M in today`s value.

or in 10 years' time,?it is the equivalent?of?R5,681,772.82.

So immediately we can see, that we have saved ourselves simply?by having the knowledge and the experience. In other words the competency. Simply by increasing your yield.

The way that you are going to evaluate the property as an example. By doing that, you make provision?that now...I need only R3M instead of R5M.

And I need a disability cover of?R2.4M instead of R4M like in the previous example.

So it is really small things like this, that change everything.

But there is something else that I would like?to show you. If this is the case, then my growth that I need, on my investment...The R1k that I need to invest comes?down from 64% to 57%.

So a very small change makes?a massive difference. On condition that we can follow the right?strategy. This is not possible at all when you?follow an opportunity seeker strategy where you have got?no control and no responsibility to make sure that?your money works for you.

Perhaps there are some of you that may say, but 57% that is?impossible.

You cant get that kind of growth?and maybe let me show you something?that will baffle your mind. And what I`m going to show you is what some of our students have done.

In the last intake in the wealth creators business curriculum. That is called the Rainmakers start-up business, and some of their results on their initial investments.

Ok,?so as an example..you can see, this is serious growth. Unless you do have the competency, there is no way you can go to get to this kind of growth.

And you have to do it according to the Rainmakers start-up business program and the Wealth Creators Strategy.

Otherwise, there is no way, for example,?the first person Alexi received over a 3 month period growth of 652 000% next 135 900%, 45 000% then 804 746%, 457 750%

and many more as can be seen above.

Now when you say to people this kind of growth is possible, they are simply going to laugh at you.

So the trick is... there is something that we call the ceiling of complexity.

So with in the first year, it is actually very, very easy to get this kind of growth.

But to continue with that over a 5 and a 10-year term becomes a bit more tricky. Simply because you need to have the competency. And then there is something else we call the ceiling of?complexity. Which basically states, the more money you`ve got the more difficult it will be for you?to grow that money.

And the only way to overcome that is to simply have the competencies.

The?moment that you follow the?wealth creators strategy. It is 100% opposite to what?an opportunity-seeking strategy is.

So you are going to find that you do not need money to make money. Because in the business curriculum?you can literally learn how to do that.

And the 2nd thing that I think is wonderful,?is that the smaller the risk the higher the growth is going to be?and there is something that is going to work against you unless you`ve got the competencies.

The more money you`ve got, the more difficult it is going to be for you to grow your money.

So in the next part, what I`m going to do is.

I`m going to look at a property quickly to see if it is possible to get a 57% growth on your investment?of a R1000.

If you would like more information on the complete course and included spreadsheets, please see below.