My dad gave me a lot of advice as I was growing up, as any dad would. Two things really stuck out though, from a financial point of view at least. One was regarding mortgages and the other about planning for retirement. Bearing in mind, when I was kid in the 70’s and 80’s he was paying mortgage interest of 14%. Yes, you read that right. It’s almost unimaginable now.
He advised me when I was looking to get my first mortgage to make sure I would be able to afford the repayments if the interest rate went up to 15%. My first mortgage interest was 5.9% and I remember thinking it was a great deal at the time. Still, I took heed of his advice and bought my first (very) modest property on the assumption that interest rates could double and I would still be ok.
Of course, since then, interest rates have fallen and fallen and it’s been below 1% for the last 8 years! This has been an absolute winner for mortgage holders like me, but a nightmare for savers looking to get a return on their savings.
This brings me onto his second bit of sage advice which was this:
“Graham, most people assume they need less money when they retire. They’re wrong. They will need more. They’re no longer working all day… they’re free to do anything they want. But if they’ve got no money, what can they do? Watch TV? Don’t find yourself in that position. Make sure when you retire you’ve got more money coming in than when you were working. Don’t rely on the government to support you.”
And of course, he’s right. I’ve been working on that assumption all throughout my career and never give a second thought to a government pension. Besides, the full basic State Pension is currently £119.30 per week.
Really. That’s just over £6K a year.
Could you live on that? Would you want to live on that?
And this is why I always find it strange when I hear people complaining that the retirement age to qualify for a state pension is going up. Does it make any difference? You’re not seriously suggesting you’re worried about having to work a few more years before you can retire on the princely sum of £6K a year?
If you’ve not already planned for your own retirement, it’s time to start. The best you can hope for from the state is survival rations and you really don’t want to be spending your golden years in that position.
If you received my newsletter yesterday you would have read some testimonials about the PIE strategy. I received an e-mail this morning from one of the chaps that gave a testimonial. To remind you, this is what he had originally said:
“I have to say I am very impressed with PIE. It was really nice to finally meet you both and I was reassured about asking questions in the future. I couldn’t wipe the smile off my face last night.”
Anyway, what he said to me this morning really resonated with what my father advised me all those years ago. I have removed some of the details, in order to protect the IP of the strategy:
That’s my comment on your blog, I completed the course in November 16 in London and I have to say that I am now convinced that the system works perfectly as I have tried with several paper accounts to break it; and I have happily failed on all occasions as long as the rules are adhered to. I have also tried several variations on the system and have found that…
Between November and February I had made 19% on my best paper account, however, since applying these rules I had to start another paper account 4 weeks ago and so far my profits for March are 11.45% and I still have until next Friday to close out my contracts which will undoubtedly boost that to over 15% (in a month).
So by following this strategy and targeting 6% per month (which is not greedy at all considering the results so far) I am certain that in 7 years following my initial investment in the summer I will be retiring at 55.
Now, as you can see, Peter is also already planning for his retirement… and 55 seems like a perfectly reasonable age to retire, should you wish to. And it’s certain that he won’t be on £6k a year either.
Five years ago when I first learned this strategy I said that this was life changing. I knew that this meant I could retire when I wanted rather than when the government told me I could retire. And it’s true. It changed my life and it’s changed the lives of hundreds of others who have learned the strategy.
Maybe it’s time to change your life too.
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