What’s your Exit Strategy?
Another thing the wealthy understand that the middle class does not seem to understand thoroughly is the importance of an effective exit strategy. In wealth creation, exit strategy refers to the ability to get out of what you’ve gotten into. It is possible that you will not want or need to get out of everything you do in your efforts to create wealth, but as you cannot predict the future, there is always a need to at least have an exit strategy in place.
Most specifically in terms of wealth creation
An exit strategy for the middle class means getting out of the working world—breaking the cycle of working for a dollar, spending, and working for a dollar more. This exit strategy is what wealth creation is all about. An exit strategy is why people seek wealth creation.
An exit strategy for financial wealth is what most people would think of as retirement. It is creating wealth that continues to create streams of wealth so that you can comfortably leave your job and live life to its fullest.
Unfortunately today, a great majority of middle class people all over the developed world do not have an exit strategy, leastwise not one based on wealth creation. Some people simply cannot see how to create wealth that can finance their exit strategy, and so they default to a life that requires them to work until they die. Death should not be your financial exit strategy (and in truth it is no exit strategy at all, since it only serves to transfer your debt to those you leave behind).
A retirement plan is the very beginning of an exit strategy, and is what is usually sold to the middle class. But in truth a retirement plan (of the common variety) does nothing real to improve life before retirement or guarantee the ability to retire early. All a retirement fund does is build up a fund with which you can live reasonably well until you die. But in many cases these are even far from adequate, and people end up either returning to work at an even more advanced age, or depending on others to live.
A true exit strategy will never stop making you money
The exit strategy that will allow you to leave the working life (at an age early enough to enjoy it) and continue to live well, continue to improve upon your life, is the wealth creation exit strategy. With wealth creation, you can create an exit strategy that is truly sustaining for life, not just for the period before your death.
Sean Rasmussen
Wealth Creation Blog
UniversalWealthCreation.com © 2004 - 2008
Tags: Building Wealth, Finance, Financial Freedom, Financial Success, Money, Success, Wealth
May 17th, 2008 at 10:05 pm
I couldn’t understand some parts of this article s your Exit Strategy?, but I guess I just need to check some more resources regarding this, because it sounds interesting.