ric , how you can retire in 10 years (or less)

Hi ric ,

Traditional financial planning is so simple it can be summarized in
one sentence...

Make more than you spend and invest the difference wisely.

Even the "invest wisely" portion is simple because academic
researchers have fully documented how to properly construct a
passive, indexed portfolio.

There is no "mystery" or "secret". No experts, formal education, or
specialized training required. Anyone can do it. Just open a
brokerage account, save, and invest. You don't even need a broker -
you can do it on your own.

The problem is almost nobody does it.

Why?

When you're 20 years old you can't be bothered with something like
retirement saving because is so far off in the future it appears
irrelevant.

When you're 30 the focus is on buying a home and/or starting a
family so every penny is needed.

When you're 40 the kids need braces, eat like horses, and their
college funds need maximum contributions.

When you are 50 it is too late. Too much time has elapsed to allow
compounding to magically convert small investments over long
periods of time into large sums of wealth. The easy door to passive
wealth accumulation is closed.

That is why I teach the active approach to wealth in conjunction
with the traditional passive approach. They are equally valid...
but only in specific circumstances. You must use the right strategy
for your individual circumstances.

The problem with passive investing in paper assets is the return on
investment for a properly diversified portfolio is governed by
strict mathematical limitations.

For example, Ed Easterling accurately points out in "Unexpected
Returns" how the often quoted average annual return for the Dow
Jones Industrial Average from 1900-2003 may be 7.4 percent but the
compound return (the only return you can actually spend) is a mere
5%. This 2.4% difference may not sound like much but compounds to a
greater than 90% reduction in spendable dollars in your account.

This is an amazingly huge deal. The lesson learned is small
differences in compound return result in huge differences in
nominal account value over time. Don't overlook these facts! They
cannot be overstated.

You must understand that a properly diversified, paper asset
portfolio is not a fast ticket to sudden wealth. A late bloomer who
doesn't begin serious asset accumulation until his 50s or 60s will
need something more.

In one of my most popular blog posts ever I explained how anyone can
retire in 10 years (or less) using paper assets and passive
investing. The link is here...

http://clicks.aweber.com/y/ct/?l=NNrzc&m=1pYQ2Q.bXyc.MS&b=Tk3TN8vVw5p.I.wLyLaTiw

In a nutshell, the answer is frugality - extreme frugality. It is
not everyone's cup-of-tea but for the right person it is a
perfectly viable answer. I give it to you here so that you have
another tool in your toolbox for designing your wealth plan. Use it
if appropriate or discard it if unnecessary.

In other words, if you have 30 years or more then you can take the
slow, passive path using paper assets with traditional allocations
and contribution rates by compounding your way over time. This
strategy works, but only when you give it sufficient time.

If you are in a rush and still want to follow the paper asset path
then frugality can shorten your journey as explained in the post
linked above.

In summary, there are two valid paths to paper asset wealth
accumulation - slow and fast - and each requires you to pay a
different price. One takes time: the other frugality. Both require
discipline.

The only other alternative is to apply real estate and business
ownership as active alternatives to achieve wealth in a reasonable
period of time.

So now you have all the choices. I've discussed all three paths to
wealth, various permutations on those paths, expected timelines,
and a few essential principles so far in this "52 Weeks..." series.

Your learning is far from over, but you have enough information to
take your first crack at designing your wealth plan so that it
makes best use of your unique skills, abilities, and resources by
picking and choosing from these various strategies.

Don't worry about perfecting it. Just do your best with what you
know now and we will continue to improve on it throughout these
lessons.

We have many more principles to apply in future lessons. As I said,
this course is serious education for people serious about achieving
wealth in this lifetime.

Your next lesson will arrive in 5 days. We will continue the paper
asset investing discussion by introducing some important resources.

See you then...

Todd R. Tresidder - Founder
FinancialMentor.com
CreateCorp Business Solutions, Inc.
DBA FinancialMentor.Com
14085 Raider Run Road
Reno, NV 89511, USA

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