Leaving Your Retirement to Luck (or worse!)

September 30, 2005 by Nicola Cairncross
Filed under: Wealth Coach Diaries 

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Andy’s put up a blog posting today, commenting on the recent news stories about how people are taking their chances on the Lottery or a hoped-for inheritance to provide for their retirement and Andy’s wondering how people can go through their whole lives without saving.  He raises lots of interesting points and I’d like to elaborate on a couple from the "other side" as it were….. 

First of all, saving (as most people understand it) is just deadly dull and simply does not seem worth depriving yourself, on a day to day basis, as the returns are so tragic.  I remember well, in my twenties, working out that actually I could not afford to save anything as my outgoings were always more than my income, but even HAD I been able to save say £10 per month, at 2.5% interest, or whatever pathetic return the average savings account paid, per annum, that I would not be significantly better off - even in a million years time.

I didn’t how important it was to "pay myself first" rather than Sainsbury’s, the taxman, the Escape Club, Ted Baker, any credit card and bank loan interest that offered me money, I didn’t understand the miracle of compound interest (or only dimly) and I certainly didn’t understand the difference between savings and "investing" and how, if you learn to invest well, you can seek a return of 30% per annum, 50% per annum or even 100% per annum. 

And it was only when I met the Passive Investment guys that I really understood that you could do "no money down" deals where you put a bit of money down to get into a deal, but that you always got it back, making it a "no money of your own" deal with an "infinity %" return on investment deal.

Do the sums on investing £10 a month and getting a 30, 50, 100, 1000% return on investment per annum.  Very exciting.

So, in conclusion, it’s possible to increase your income so that you free up money to invest, it’s possible to learn how to create a 30%, 50% 100% or 1000% per annum return on your investment, it’s possible to become a multi-millionaire within 5-10 years.  Ask Andy!  Come to the Wealth Creation Conference and find out how to do it for yourself. 

Or don’t and rely on the lottery to sort our your old age.  And we all know that it’s more likely that you will get run over than win the lottery.  That would sort it out as well!

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