|Question or Comment:
Hi Mr. Rood, I just retired. Can I also use your book and gain from reading it? --Anonymous
There are two situations that describe everyone's financial position when they retire:
1. Your retirement savings will generate enough income to pay your bills and cover inflation.
2. Your retirement savings will not generate enough income and you will have to "cash in" part of your retirement savings every year to pay bills and cover inflation.
If situation one describes you, sit back and relax. Your retirement years will be worry free, at least from a financial perspective.
If situation two describes you, you are in a race. Which will happen first? Will your retirement savings run out or will you die? As I said in Paycheck Independence Day:
Imagine waking up one day at age 80 and saying to yourself "I hope I die this year because I'm running out of money."
Most people don't know which situation describes them because they don't understand money management. Money Management should be a required class in every high school and Paycheck Independence Day should be the textbook.
Back to the original question, if you just retired, here is what you will gain (and not gain) from reading Paycheck Independence Day.
In Paycheck Independence Day, I show everyone how to stop paying bills with their paycheck (which BTW is the purpose of your retirement savings). You will learn the correct sequence for eliminating each bill. One-by-one you stop paying each bill from your paycheck.
For example, the first bill I stopped paying from my paycheck was the Trash Pickup bill. It is a Lifelong Bill, so it should be paid by investment income. The annual amount was $200. At a REALISTIC rate-of-return of 5%, I needed to save $4000 to generate enough investment income to pay that bill. I give examples in the book for people who can invest $500 per month, $1000 per month, and $2000 per month. If you can invest $1000 per month like I did at the time, it will take four months to eliminate that bill and you will never need a paycheck to pay it again. I also describe how to handle taxes and inflation in the book.
How does this help someone who is already retired? You should be able to look at your retirement savings and identify how each bill is being paid. This will give you a good idea whether you have enough in retirement savings to relax or, has the race begun.
Here is what you will not gain from reading Paycheck Independence Day. If you are trying to figure out what to invest in, you won't find it in the book. The book teaches everyone how to make the right money management decisions. It does not name individual stocks you should invest in. As I say "If you even have to ask what you should invest in, there is only one correct answer to that question. You should invest in a Financial Advisor." My father was very knowledgeable about investing but even he knew that he needed a Financial Advisor to guide him through retirement.
Whether you are retired or not, you will gain insight and knowledge about money management that you never had before if you read Paycheck Independence Day. Another important thing you will get is the ability to pass your new-found knowledge on to somebody who will benefit from it like your children, grandchildren, friends or anyone else who needs it. There is no greater feeling in the world than knowing you helped make someone's life better.