There is SO much hype around how to prepare for retirement and making sure you have "enough". It can be plain confusing - scary even. It makes us nervously look at our superannuation, investments, budget spreadsheets and savings and chew our pencils down to the lead. Predictably, there is a whole vulturous industry out there making an absolute killing from folk's retirement fears.
As a dividend investor, I pretty much completely ignore all the advice floating around and I most certainly ignore the TV, glossy finance magazines and the papers.
I calculate my future retirement income needs differently - here's how:
Four Simple Steps To Retire
1. How much yearly income do I need to not have to go to paid work anymore and live a simple but interesting life? (write down your answer)
2. As a conservative, old-fashioned investor of fully franked dividend shares, then how many shares will I need to hold to give me that exact dividend income each year? (write down that number)
3. Get busy buying up that exact number of shares over as shorter time frame as possible.
4. Once that number of shares is bought - retire.
It truly is that simple. Start today.
I am going to do a post on each of these 4 steps to practically flesh this subject out a little - but it honestly is that simple.
Take care folks and stay nice.
Mr HM (Phil)
PS - today's blog picture is home made pizza made with scone dough as the base and left overs from the fridge as topping. Freshly baked, frugal and gone in a flash by the hungry hoards.