Filed under: RetirementIf you read my personal finance posts, you know how strongly I feel about the need to save for retirement. Unfortunately, according to the Employee Benefits Research Institute's 2014 Retirement Confidence Survey, only 18 percent of Americans are "very confident" in their retirement financial security, and 35 percent)have yet to save any retirement money at all.
In my experience, people don't avoid planning for retirement because they think it's not important. They avoid it because they're overwhelmed, and they don't know where to start.
This is why, in this constantly connected social media era, I'm finding fresh new ways to get my retirement message out. For example, I'm teaming up with personal finance community MoneyTips.com to co-host the one-hour free #RetireeNextDoor (LIVE) social jam at 2 p.m. Eastern today (Nov. 18).
Advice in 140 Characters
More than 25 savvy financial advisers, accountants and personal finance bloggers will join a real-time discussion on Twitter about what it takes to dramatically improve your chances of retiring successfully -- 140 characters at a time.
One of our esteemed panelists is Robert Kiyosaki, best-selling author of "Rich Dad Poor Dad." To kick off the digital conversation, I asked him to offer his take on one of the key questions we'll be discussing during the Tweetcast: "How do you determine how much you need to save for retirement? Is $1 million enough?" Here's what he said:
"To know how large of a savings 'nest-egg' you'll need, you'll need to know three things: How long will you live? How will inflation increase? What will the various markets do? These answers are impossible to know. You are gambling with your future.
If you change your definition of 'nest-egg' to mean a pile of cash-flowing assets, rather than cash, your problem is solved.
By purchasing and saving cash-flowing assets, you could build a pipeline of cash flow for life-a pipeline that would produce cash in good times and bad, in market booms and market crashes. Your cash flow would increase automatically with inflation and, at the same time, allow you to pay less in taxes. These means your standard of living does not have to decrease, but can actually increase.
You can earn cash flow from real estate rentals, stocks via dividends, from bonds via interest, or from oil, books, and patents via royalties. In other words, there are many ways to stress free retirement freedom. All you have to do is change your definition of 'nest-egg' and you can survive at your current standard of living for as long as you live, whether you work or not. And you'll leave infinite money for your loved ones, too."
His fresh answer to this vital question illustrates why he is one of America's most thought-provoking thinkers in personal finance. He is also one of my favorites.