Tuesday, October 13, 2009

Day #26: The Automatic Millionaire, Chapter 1

Chapter 1 builds upon the exercises done in the introduction.  The author, David Bach, gets into more detail about the McIntyres. They have no debt and have retirement accounts - even a rental property that is paid for!  He then wants the reader to talk about their retirement wants and the time to achieving the goal. His category "Y/N" is defined as "retirement wants that you want in retirement (Y) or you don't care (N)". This seems a bit ambiguous to me - does the "No" answer mean "I don't care WHEN I get this want" or "IF I get this want".  I'm going to answer the Y/N column as "I don't care WHEN I get my want."

Actually, maybe this way:

R = I want this in retirement
B = I want this BEFORE retirement
X = I don't care if it is before or during retirement



The Automatic Millionaire Goal Developer
Actionable Goal
Y/N
How close? 10 = Achieved, 1 = Not Begun
Save money in my 401(K) and Roth IRA - enough to live off of dividends/percentage of portfolio
R
2
Continue creating passive income streams through blogging, composing, etc
B
2
Enjoy spending money on things that are important to me and not spending money on things that I don't care about
B
5
Give 10% of my income (or retirement withdrawals) to the church
B
5
Sign up for frequent flier programs or a credit card that gives back miles
X
1
Have a vacation fund for this type of travel (not include the "Travel" goal)
B
1
New Zealand!
B
1
Europe!
X
1
Israel!
X
1
Get a Master's degree (perhaps PhD) in Music
B
1
Exercise interests in music, writing, cooking, vegetarianism, minimalism, reading, investing
B
3
Buy/build a  house that suits my creative needs
B
1
Have some sort of self-sufficient house (solar or wind power) if I can handle or hire for the upkeep
X
1


That's interesting. Most of my goals are before I retire. Two thoughts come to mind.

1) Does that mean that I'll still want to do the same things in retirement that I want to do now or in my 40s?

or

2) Does that mean I cannot see that far into the future to be realistic?


Hmmm. Maybe I need to re-evaluate my goals toward retirement.  Or not.

«Laura»

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