The Five Score Years of Investing
I read an article in the Australian Business & Investment Explorer yesterday. A Score For Life by Graham Hand (Naked Among Cannibals) introduced me to the concept of Five Score Years of Investing. You see, it seems we are now more preoccupied about our old days than our parents -and their parents.
I am a young guy but I am already thinking of the day I will retire. Like all of us, I want to retire comfortable. And there's no secret here: how well I'll live in 40-50 years depends largely on how well I built my financial independence.
"Those who rely on the pension and free public health will be hoping taxes will be sufficient to support a decent welfare system" says Mr Hand
And with a median age of 50 years old by 2051 this means we will need all the help we can get now. That's why planning for retirement starts now.
The Five Score Years of Investing is a framework to help build your long term financial independence. it consists of the following five stages:
- First Score Year: Development of of human capital
The first 20 years of our life should be dedicated to build personal human capital by developing opportunities to learn and gain new skills/knowledge. A good way to do this is to get a good education, go to college (or university). But it certainly isn't the only way. Anyway, this is the period during which we study hard, play sports and all.
It may also be a good time to start investing. You know... put some of that money away.
- Second Score Years: Asset Accumulation
To be Continued ...
Merry Chrismas and Happy Holidays to all!!
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Anonymous |
12:26 PM