Could Digital Income Creation Be A Better Retirement Strategy Than Borrowing To Buy Overpriced Assets?



Hi. Matt Clarkson here and welcome back to Easy Home Business. I just wanted to briefly chat this week about the upcoming budget for the federal budget of Australia, and all the sort of things that have been happening in the economy lately and the conversations that people are having around, specifically, pensions and retirement.

I’m very passionate about the Australian population and helping them prepare for retirement. Why? Because I’ve seen our own family have issues with our, my parents and Amanda’s parents having issues in retirement, being able to fund their last stock.

It’s very important that we start to think about our family members, and how are they going to be sufficient in retirement or not, and then ourselves as well. Because even though it might seem like a long way away, inevitably, time creeps on, and before we know, we’re creeping towards that stage.

We need to start to be thinking about, what is the future of retirement in Australia? We all know that we’re being forced to put money in a superannuation. That could be a good thing or a bad thing. I’m not really sure yet, personally, on whether that’s going to be the right thing, I guess, so I’m putting certain money into super, because it’s compulsory. But I’m still not convinced yet the best way for it to be invested.

I’m really starting to think about the market specifically and how it all seems to be coming together and the interest rates dropping down to record lows. What that means is that now retirees are starting to look for high returns, high dividend top of shares and stocks that are going to give them the income they need.

This is pushing the value of those shares into very high places. We’ve got properties going crazy with prices in certain states and cities, but not in others, and record low interest rates.

I find it very interesting that…for me, I also found it a bit alarming that the national treasurer, the federal treasurer is on TV encouraging people to borrow money to invest. The way he was saying it was like, this is the next gold rush, and just crazily go out and just borrow money, invest in something.

To me, that is irresponsible for someone in that position in this country to just be saying that “Willy-nilly” to anyone who could be listening and not thinking through all the fundamental reasons of why they would go and borrow money, and where they were going to invest it into, and whether it is even the right time, whether it’s right for them. I do have a bit of a issue with that.

I’d rather be thinking about…and my philosophy is, “Do we really want the asset?” Traditionally, we’re framed or programmed or think, I need to own investment property so it can give me this income in retirement. Well, my philosophy is, “Do I really need the asset, or I just want the income?”

That’s why I’ll get passionate about creating income streams on the Internet and externally from a job or whatever it is that you currently do.

For me, if I was thinking about retirement planning, and I am, because I still think it’s important that we start planning it as soon as possible. I’m not after assets, I’m after income producing assets, which will be, for me, digital income online.

That’s why I encourage people to think about, and so how are you preparing for your retirement? Are you still thinking, I need to own all of those shares for the return? Or I need to own that specific property to get the rental return?

Well, could you change your thinking and think different from the norm and start to think about, what if I actually just had the income coming in from some form of external income from what I currently do? That’s what we teach people to do. That’s what we’re experts at, and that’s what we see a lot of people gaining success in.

Think about your future. “Do you need the asset? Or do you truly just need the cash flow?” For many people, retirement is more about the cash flow than the property or the asset or whatever it might be.

That’s the thing, you’re going to hear all different messages, I’ve got a message, the treasurer’s got a message, a real estate person has a message. They’re all different. You’ve just got to figure out what’s right for you, what’s going to be the best thing for you in your current situation financially, in your budgets. Moving forward, what have you got planned for and will you be ready?

A lot to think about, I know. But you should be thinking about it now. Don’t wait till it’s too late, because, as the saying goes, “If it’s too late, it’s too late.” I don’t want you to be thinking then. Think about it now. At least get some ideas flowing in your mind, because we see so many people in trouble and that’s the last thing we want to have happen for more people.

A good lesson this week in clarity, thinking differently, and where do we go from here. See you soon.

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