When you get right down to it, the pattern we all follow to reach retirement escape velocity is very much the same.
Our nest eggs are all governed by the same two simple equations.
Universal Retirement Equations
1) Income – Spending = Savings
2) Savings x Growth X Effective After Tax Rate = Nest Egg
That means there are four universal levers we can use to grow our nest egg, and mastering them in the right order can send you hurtling at light speed toward retirement. In typical order, here are the skills you will find you need to master to retire quickly.
- Master spending control
- Expand your income potential
- Deploy your money for optimum growth
- Minimize your tax exposure
In this two part series, we’ll explore each equation: how to start tackling each stage, how to get at the low hanging fruit, and what to expect around the corner. Check them out below.