Forging a Retirement Plan

By Jack Bosch, EO Arizona member and Founder and CEO of Orbit Investments, LLC

Everyone wants to make more money, and every entrepreneur’s main focus is to grow the business and make it bigger, better and more profitable. After all, the future looks great and things seemingly only look up. So the logical step is to reinvest the money we make into our growing business, right?

Unfortunately, many entrepreneurs become so determined to see their organization grow that they do not plan for the many unexpected outcomes that could slow or potentially damage all the work they’ve invested into their business.

10 years ago, I was worth US$3.5 Million and today I can’t even afford your training course of a few hundred dollars.

I’ve heard variations of this plenty of times from entrepreneurs that have fallen on hard times, and each time it breaks my heart. So the question becomes, what could the typical entrepreneur do to ensure “forever wealth” or at least a comfortable retirement no matter what happens to the business long term?

Based on my personal experience the answer is a “part time focus” on what I call “Forever Cash.”

“Forever Cash” is the kind of Cash for which you work only once and which pays you “dividends/royalties/rent payments/commissions” forever.  By focusing on and using just a small part of your profits during the good days for investments, you are creating the long-term stability you need for when you truly want to retire or when the business does go south.

I have a multitude of non-core related investments which I built up for quite a few years now, and I have a couple of long-term staff members manage their day to day issues in addition to what they do for me in our core business. They manage the stuff I don’t want to or don’t need to be dealing with, and even take care of and manage the managers of other fairly passive businesses we now own and which were funded by our core business.

That way you can keep focusing most of the time on your main business, while building an ever larger basis of mostly hands-off investments that are designed to provide for your livelihood whenever you do retire or in the case of a business failure. It is worth it.

Categories: FINANCES general

Tags:

Leave a Comment

  • (will not be published)

*