I always see a lot of regret in the eyes of many adults when we do financial intelligence training. They feel like, why didn’t I get to hear about this much earlier? I understand this feeling too well, which is why today, I’m arming everyone with a letter to any young person they love. Send this to them, and let them know you will send more later. If you want to be an FBI coach, get ready to do the training and ace the examination. You can reach out to me to find out more.
I hope this letter finds you well as you embark on your new career. I wanted to reach out to you to share some important information about preparing for life after work. I’m sure you are shocked I am writing to you about this, but I wish I had known when I started decades ago that the best time was at the beginning. As you know, retirement is a time in our lives when we no longer work and rely on our savings to support us. It’s never too early to start thinking about this important stage of your life.
As someone who has been in the workforce for many years, I have seen first-hand the power of time and compound interest. One of the most important concepts you need to understand is compound interest’s power when saving for retirement. Let me give you an example: if you were to invest $1000 at a 20% interest rate for ten years, you would have $6,191 at the end of the ten years. If you had started investing the same amount ten years earlier, you would have $38,337. As you can see, starting early can have a significant impact on your savings.
Another concept to consider is financial freedom. This means having passive income sources that cover your living expenses, allowing you to live without the need to work. Building assets such as rental properties or building a business that continues without you can provide you with residual income and help you achieve financial freedom. It’s important to focus on building assets that provide passive income, as opposed to having a large amount of cash saved up.
Unfortunately, many young people don’t think far enough ahead and may not enjoy the freedom they desire later in life if they don’t start now. According to recent statistics, only about 10% of Americans are able to comfortably retire, which is why it’s crucial to start preparing as early as possible.
In conclusion, I encourage you to start thinking about your future and take advantage of the power of compound interest. Consider building assets that provide passive income, and remember that the earlier you start, the more freedom you’ll have later in life.
I wish you all the best in your new career and your future.
Adeolu Akinyemi (You can replace my name with yours)
Your Financial and Business Intelligence Coach