What's your Retirement Plan?

Most people either don't have a plan or if they do they focus on a specific number and it's generally the wrong number.

People look to hit a number so it will allow them to have a passive income so they can then eventually retire and enjoy their twilight years.

For example they aim to create an Ocean of Cash so they can live off a stream of income. Therefore if the stream of the money is the goal why not focus on the streaming number first instead of the Ocean first and let the stream build the mountain. This could be a 5 year or even 10 year plan whereas building an Ocean first could be a 30-40 year plan. Based on a projected growth rate of 5% a year, you would need to put aside ￡880 each month for 35 years to build up a pot of ￡1m for retirement

How long are you prepared to wait?

So what's my plan and how am I going to go about it?

My plan is to focus on the stream that a ￡million would generate. According to figures from Brewin Dolphin, one of the UK’s leading wealth managers, a pension pot of ￡1m could provide a gross annual income of around ￡40,000 (4%) per year. This means that I would need to produce a monthly passive income stream of ￡3,333. I aim to focus on properties that will generate a minium ￡230 of positive cash flow a month so therefore I need 15 properties to generate that amount.

What I also have in my favour are other profit centres working for me pushing my return well above the 4%. i.e. Not only am I getting the 4% return on the cash flow but I am also getting the appreciation (based on 3% average per year) and I am also going to be buying below market value which means I will be locking in equity at the start.

Now we reverse engineer (Start with the end in mind)

I know that the number of deals I do is in direct propertion to the offers I make. Worst case scenario that is 1 deal for every 30 offers.

So 15 properties * 30 offers = 450 Offers

450 / 11 months (We are nearly at the end of January and I've been enjoying Xmas for too long now) = 41 offers per month

41 offers / 30 average days in a month = 1-2 offers a day

I will look to pruchase these properties both via cash, bridging, conventional lending, private finance and creative financing where I will work with the sellers. Eitehr that or I will keep putting the lottery numbers on each week and pray to the big man that my numbers will come in.

Do you think this is achieveable? What's your plan?

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