"For Men and women Who Want to Allow Working Some Day"

 

For: Camilo Pinto
Publisher



It is common to speak with friends, relatives and clients who assume that in some moment of his lives they will be able to allow working and will devote themselves to live through his golden years; this stage of the life where the freedom is had to do what more loves and if this way he decides, not to have to work again. I do not try to alarm him, but the numbers show an end of not such a happy history...

According to statistics of the Administration of the Social Insurance of the United States of the Americans who come at the age of retirement of 65 years:

	45 % depends on his relatives.
	30 % survives for the charity of others.
	23 % will have still to keep on working
	Only 2 % will be able to stay alone and will have some type of economic independence.

The same governmental office affirms that 85 % of the persons who come at the age of 65 does not have not even US$250 saved for his retirement.

It is shocking and it is sad but it is a problem that almost all the American families share.

If that is in the United States where we all know that the standard of living is quite superior to that of the Latin countries, does he imagine what the numbers will be for these countries?

Although I have not found the same official information on the part of entities of the government for our countries... something sure is that the numbers are much more alarming!

The majority of the Latin Americans does not have the most remote idea of how managing to turn his sleep in fact. In fact, in a study of the cooperative of investigation L.I.A.M.A, of the men who were admitting to be a financial defeat, the immense number of 93 % was making sure that his problem had to do with the fact that they did not have a financial plan.

There is not he doubts that we have a lot of sleep, but there are pure fantasies until we have a plan defined to reach our goals.

Since we saw already in the edition Not. 1 of "My Personal Finance", a thing is what there want to plan you and other one what he needs to plan. (If he wants to consult the past edition where there is done emphasis on the importance that can have for you to initiate a process of planeación financier, please click in the following link:


As part of our professional responsibility in Planning Advisors we feel in the obligation to announce those targets that must have a high priority in HIS planeación, independently that you decide to give or not him the importance that they deserve. The decision will always have it you but at least it must know the implications of his decisions.

That ALL the persons must be focused in gliding to have financial health in the Age of the Information we call them to these targets the List of Gold. The target that it heads is ready is of planning his strategy of Libertad Financiera.

Some persons tend to refer to this target like strategies give a pension to them, but the concept of financial freedom is much wider and powerful. In fact the strategies give a pension to them there are a part of the strategy of financial freedom. It is clear that it is important to consider the topic pensional since with the Law 100, his regulatory decrees and the reform pensional of beginning of 2004, this is a point that it is necessary to examine very closely and that must be known. (The Law 100 corresponds to Colombia and December 23, 1993 was the beginning of the reform of the social security in this country).

The concept of financial freedom to which we refer has to do with the concept of wealth that many experts raise after half of the nonsales. The wealth has to do already only neither with the revenue of an individual, nor with his patrimony but with the TIME with which you can support his quality of life if you leave all kinds of linear income. (A linear revenue is that that receives product of a work that you do and that disappears if you stop realizing this work. The personnel and the persons that consultants work of independent form like some book-keepers, doctors, lawyers, dentists, between others, they perceive linear income).

Likewise the persons who obtain income product of financial yields, rentals of property root, dividends, or for being proprietors of companies that run in automatic pilot they receive income of residual type; that is to say, they do not have to realize a work to receive his revenue.

Therefore, one of the definitions of wealth with which more I identify is the quantity of time that you can spend without diminishing his quality of life if his linear income source disappears. Do many persons scarcely survive a pair of months... and you?

If we take into consideration the previous thing, a strategy of financial freedom contemplates the action plan so that you perceive income of residual type. It does not allude only at a specific age in which most of the persons are given a pension as in case of the strategies give a pension to them. The plan of action of financial freedom is different for every person since it is implemented from the current situation of everyone and in accordance with the target that every who has as for the total needed from residual income in a moment of time that is defined. In most cases it involves the implementation of strategies of investment much specialized like starting point.

Why is it important to plan this target? So that you are not a statistics and not between to being part of this group of Colombians who have to keep on working or to live of the relatives' help when they overcome the age of 60 years.

All that for basing his calmness and his retirement only on the famous pension, which every time tends to be a minor due to many conjunctures that leave of the scope of this report but that have to do with the Colombian fiscal deficit, the reforms that very probably will come, the situation of the Social Insurance, between others.

The wrong idea does not take. The obligatory pension is important and for many persons it can be an essential part of the strategy of financial freedom, but hardly ever it must be the component only one of the same one. All forms it is vital to carry out the pertinent analysis and that includes the projections of the possible stipend pensional, the possible pensions of death and of invalidity, the bond pensional, between many other things.

If he wants to study in depth the topic of the obligatory pension and know one of the best options for the handling of the same one please click in the following link:



Why is this target of financial freedom important? To plan the moment in which you will be able to buy his time.

To what do I refer with this? Some persons plan financial targets, but rarely they include inside these targets when they will have all the time to dedicate to doing what more they like how for example to travel, spend time with the spouse, with the children or with the family, to study, to learn a new language or to touch a new instrument, to devote itself to a hobby, anyway... or perhaps simply to keeping on working or developing a productive activity but for the simple pleasure of doing it...
This is the reason by what Libertad Financiera one calls him to this target. It includes much more than money, includes time and his combination, achieving a real quality of life.

What would you do if the time and the money there were no problem?
Does it have a plan to achieve it?

Or simply is following the "genetic program" legacy of the industrial age that he supposes studying and then working for 35-45 years later to live of the pension?

It is important that his golden years really are gilded and not an illusion without financial sustenance. You must include a target of financial freedom as one of his priorities of planeación!

There exist 3 basic vehicles across which a person can enter the world of the Financial Freedom:

1.	Financial vehicles: they are based in constructing a capital little by little using the time like his best ally, so that in the future the created capital supports part of his expenses across the financial yields that it produces. Inside this strategy there are investments in the financial sector across different assets like actions, bonds, multimanaged briefcase, etc. Also is the obligatory pension, be already across a fund deprived of pensions or across the Social Insurance (for the case of Colombia). The interesting thing of this is that you do not have to be expert in the topic, but there exist certified financial planners who can face it.
2.	Vehicles of Farm Root: it works just as the previous one but across strategies of buy and sale ó buy and rental of property root. The residual revenue in this case comes route rentals in many of the cases. (Although also there are strategies of buy - remodelación-venta, in which the farm root only becomes a link in the process. Namely the capital does not remain long periods of time in this type of investments). This strategy normally demands a lot of more time and more learning of his part than the first option because in the majority of the cases there do not exist certified consultants of investment in farm root but sellers of farm root... and both are very different things: the first one knows how to invest in farm root and in general he is also an investor, while in the second case, the majority they are selling but that in his life they have never invested and do not have the investors' mentality. Nevertheless, they can be very useful at the time of wanting to have a pulse of the market in certain moment.
3.	Companies in Automatic Pilot: this third strategy clearly is the one that more time needs to be able to construct really a source of residual income. I believe that it is a vital knowledge to differ between those proprietors of companies in which more it seemed that the companies are their proprietors, with those businessmen who across the years develop a system that allows to the company to produce without them to have to be present. In the first case if the businessman is not present the company might not produce any more than one pair of months. In the second case, the company turns into a source of income without the businessman having to be 100 % dependent on the operation and it is there where normally it is possible to count like a source of residual income and like part of the strategy of Libertad Financiera of a person. Each of these strategies is important, they include a lot of information and probably it would need a finished book to develop each one, but along the editions of "My Personal Finance" little by little we will study in depth these topics so that every time it is provided with hardware to improve his financial life.

Now well the action plan to achieve it depends much of the particular situation on every person: part of a diagnosis and it involves a heap of elements that later will know them in "My Personal Finance".

As every person is a different world the only way in which you do this of punctual form and with the professional rigor that he deserves financier is with the guide of a specializing consultant in planeación, who has all the technical knowledge to help it and the hardware to be able to do the projections and simulations that come to the case.

If he is still not our client and wants to study in depth more this topic please click in the following link:



Since I always say goodbye hoping that this bulletin should have helped him in his target to take control of his financial future.

Camilo Pinto
Publisher
Tel.: (571) - 6914692

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