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Three Stage Retirement Plan

Achieving financial freedom begins with establishing a specific GOAL with a deadline. After reading The Millionaire Next Door (TMND) By Thomas J. Stanley, I decided to incorporate the formula provided in the book in my Retirement Plan. Instead of having one goal with a very long duration, I decided to divide it into three short stages. Smaller goals will make it easier for me to achieve and will motivate me each time I complete it.


Goal Setting

The FIRST STAGE of my retirement plan is to become an Average Accumulator of Wealth before I turn 40. The book states that a person needs to have a net worth his/her age multiplied by his/her annual household income then divide it by ten to be considered an Average Accumulator of Wealth.

Age x Annual Income / 10

This formula provides an exact figure serves as my first goal. Although it is prone to changes, since future income is unpredictable, I used the inflation rate to establish a conservative estimate of my future income.