Face The Facts: Part V

How much wealth do you need? Good question and this will vary with people depending on their perceived needs, age, and where they are financially at this juncture in their lives.

The recent stock market crash has drastically changed people's financial status, to put in mildly. Refer to Warren Buffet in my last blog.

Social security, medicare, and all other government programs are problematic at this time and no one really knows how this will play out.

Your future does not have to rest with the government. If you play that card, you are playing against a stacked deck. You need to take charge of your own future.

Homework time. Where do you stand?

1. List all of your assests: stocks, bonds, CD's, IRA's, savings accounts, etc.

2. Do not include your home or your car. Why? You will probably still want to drive and you need a place to stay. You will not liquidate these.

3. List your liabilities: credit card, loans, business debts, etc.

4. Subtract your liabilities from your assets.

If your net worth is less than $300,000, you are not in a position to retire any time soon. Not that you want to or need to retire at any time in your life. With the proper finances in line, you can choose to do something different with your time.

What you really need is to accumulate enough capital to generate a passive income that will pay for all your basic bills: housing, food, utilities, etc.

This is what CreatingWealthThatLasts is all about.

Jacques