How to Plan your Retirements in your 40s – Learn How to Save, Use the Passive Income Ideas to Invest and Build Wealth for your Family.
Aside from your voluntary retirement savings and contributions to Pension account, everyone is supposed to invest independently for passive income before one clocks 40. While this advice also applies to the 20s, 30s are considered the most appropriate time because it is the period one should aggressively build and own potential lifetime passive income assets.
When you clock 40, you ought to have moved from earning a salary to investing and from investing to generating a sizable passive income that will take care of you and your family.
The question is how much is considered a passive income? Well, there is no single exact figure to consider a passive income but I always think that if everyone has an idea of his/her monthly/annual living expenses, then one can work towards building an asset that generates a cash flow that covers these expenses with extra savings, this, in my definition, is what my definition of passive income.
For instance, if your family expenses on a monthly basis are between N100,000 – N150,000, (which translates to N1,200,000 annually), a true annual passive income, say N1,400,000 should cover these monthly expenses with extra cash savings.
Now if you are in your 20s or even 30s, you have enough time to start building your investment portfolio or asset for passive income. But if you are already above 40, that window may become narrower especially for the late 40s.