How to Retire in 7 Years

How does early retirement sound? No matter how old or young you are, you could retire in seven years by following this plan. It will take hard work. This isn't a get rich quick and easy plan, its simply the best retirement investment you can make: residual income.

Difficulty: Challenging

Instructions

1. BECOME FAMILIAR WITH THE POWER OF RESIDUAL INCOME.
   
   Residual income is income that comes monthly or yearly without any ongoing work of your own. Stocks with dividends are a good example. A better example would be book royalties, rental properties, or franchise opportunities. Residual income is a powerhouse compared with typical retirement investment strategies.
   
   If you save 1 million dollars, you can count on getting about 65,000 out a year without eating into your principle. Residual income doesn't require you to be a millionaire. Build up just $5500 dollars of monthly residual income and you are living like a millionaire.

2. LEARN A RESIDUAL INCOME EARNING STRATEGY.
   
   Think of it as a retirement investment strategy. You could buy franchises that managers run for you, purchase rental properties, write books, write online articles, sell e-books, or any other form of ongoing residual income. The key is, you will have to learn how to do it. Pick a strategy you think you can enjoy, learn how to do it, and pull the trigger.

3. ADD $100 OF MONTHLY RESIDUAL INCOME EVERY MONTH.
   
   If you do that, you can retire in seven years with 100,000 of yearly income, regardless of social security, pension or IRA. Most figures assume a monthly income of $100 per apartment unit in the rental business once they are established. Many online writing sites will average about $1 per article per month. That means if you write 100 articles a month you will get there. A franchise takes a lot more up front capital and often real work to get to the point of farming out the management. But if you get there you can be pulling out $24,000 a year after paying management to do everything for you.
   
   You get the idea. The key is finding recurring income that will keep coming in even when you aren't working on it.
   
   ** See more tips below on retiring in seven years.

Tips & Warnings

• Live frugally and keep reinvesting some of your residual income back into creating more residual income.
• Consider continually investing in Roth IRA's and other retirement investment plans to have a back up. This will also help take care of inflation by increasing your income as you age.
• See related articles on this page for more.
• Never risk more money in a residual income plan than you can afford to lose.

[dorigillman]

on 9/6/2009 thanks

[botticelli728]

on 9/6/2009 Great advice, esp. for those who can start young. 5*

[joanhaines]

on 9/6/2009 The warning is prudent, and the method is smart. There is a lot to learn about residual income, but how sweet to have success with it. Worth the effort to figure it all out. Thanks.