30 years ago, a Canadian life insurance company dreamed up the marketing slogan "Freedom 55". The extremely optimistic idea was for people who invested when they were young and received double digit returns could actually look forward to retiring at age 55.
Today is my birthday, my 55th to be exact or what I refer to as "double nickle". I have travelled a mixed road on my way with a few wrong turns, a near bankruptcy but now enjoy a relatively fortunate financial position. But is no sense am I am in a position to retire just yet. Perhaps in 10 years at my present savings rate depending on how the economy progresses? I own only a few hundred in CC debt and will be able to pay off my mortgage within 9 years. I save in excess of 20% annually to make up for under saving in my less secure years. I just received a 3.5% raise this year and therefore put part of that money into increasing my mortgage payment and part to increasing my savings and the rest will cover inflation. I call it prudent financial management. While other dabble heavily in stocks and bonds - I have diversified into precious metals which are the only true money to balance the potential for losses in my pension/RRSPs.
I firmly believe that the world is going to have another financial meltdown - and this time it will be worse than 2008-10, perhaps on the same scale as 1929. The signs are all there, bubbles are being inflated. Oil is volatile and has dropped dramatically in the last few months. Prior to 2008, it happened as well. This time it may not be the US who will start the meltdown, it may be Japan with its +230% debt or China with its slowing growth rate and soaring debt levels. Or perhaps it will be the banks who hold trillions of derivative debt will collapse again? Whatever the initial issue, "Freedom 55" is a unattainable dream, now or in the foreseeable future. The old joke "how do you become a successful millionaire - start be being an unsuccessful Billionaire!" is probably more true.
How about you? How confident do you feel about your financial future? If we experience a financial collapse in the next 18 months, how prepared are you?
Starting Score: EQ 732 October 2007; Current Score: EQ 839; TU 865, July 2022;