How Much Will I Need to Retire? | Kris’ Famous Financial Freedom Formula

How Much Will I Need to Retire? | Kris’ Famous Financial Freedom Formula


How much money are you actually going to
need to retire? It’s mind-boggling to me how so many people really don’t know the
answer to this question. And there is a science to it. But today, I’m going make
it super simple. I’m going to give you four specific questions. And if you can answer
these 4… Which a pretty easy to answer. You’re going to have a really solid idea
of exactly what you’re going to need for retirement. This is the most important financial
question that you can be asking. In fact, you need to know how much you’re going to
need for retirement. But no one really ever knows how to answer it. No one can
give you a formula until today. Without a formula, you’re just going to default to
society’s game plan. And for just a moment, look at what society’s game plan
actually looks like. They’re going to tell you that you should put your money
in 401Ks, IRAs and then you should work on paying off your house. And what that’s
going to do is that’s going to leave you with very little money in the bank and
that’s gonna leave you in a really broke financial mindset. Because if you got no
money in the bank and all your money goes into places that you’re told, “Don’t
touch or else you’re going to get penalized.” It really messes with the brain. I had a
unique opportunity and experience as a very young man that really gave me the
answer to this at a very young age. As 22 years old, I was in college and I got
this telemarketing job. And I was talking to people who 30 years earlier was
following society’s game plan. They were saying “Go to college. Get good grades”,
right? “And then get a career. Work for somebody else.” They had all done that. So,
it was weird. It was like this Time Warp. In my early 20s, talking to people in the
early 50s. And you know what I noticed? I noticed that they had been successful
putting money in the 401Ks. Some of them had 50 grand,
some of them 150 grand. Some of them more. Some had put some money in IRAs for some
tax benefits. And then the rest were working on paying off their house. Some
people put some money in the stock market. But for the most part, that’s what
people did. And after 30 years, do you know what they had to show? They had a
net worth anywhere from a 100,000 to 3, 4, 5 hundred
thousand dollars. Now, here’s a crazy part: Most of people were living off because
they had kids and families. They were living off of 70, 80, 90, or $100,000 a
year. So, after 30 years, they had saved enough
that if they had to spend it right now, they’d be able to live for another 3,
4 or 5 years. And then they would run out of money. As an early 20-year
old, I thought “This is crazy”. My dad told me that I need these good grades to go
to college. And now I’m in college and when I decided I couldn’t be a doctor it
was kind of midlife crisis for me because I ultimately became super clear
with the fact that I’m not going to be the doctor that I wanted.
And I’m not smart enough to get because I just can’t rock the chemistry stuff.
Which means I got to find another degree. And most of the jobs… You know you get
degrees for paper 30,000 year or $50,000 or $80,000 a year. I’m like, I knew the
math. You can’t save enough money. In fact, if you make $300,000 a year. And you’re
not disciplined to save half your money, you’re not going to save what you need for
retirement. And it it became this impossible mathematical equation that no
matter what, you weren’t going to make it. That caused me to basically say, “I need a
functional plan that’s not broken under this garbage 401K, IRA crap.” And the other
thing that I realized… I’m going to have to figure out a plan of how to get there.
This led me to the information I’m going to share with you in today’s video which is
ultimately how do you actually know how much you need for retirement. There’s
4 questions I believe you need to ask to figure out that number. I’ve never
made a video sharing this information before. I think it’s something that
you’re going to appreciate. And let me jump in right now. Number one, the first thing
that you need to know when you’re asking the question. What do I need to be
financially free? The first question that you should be asking is how much money
do I need to replace my current income? Now, the reason why I start with this is
that your current income is a part of the lifestyle. You’ve built a life for
yourself. And a style around that life for how much you make. So, for some of you
it’s $50,000. For some of you, it’s a $150,000. For some of you it’s $20,000. Whatever the amount is,
there’s 4 questions for you to live the life that you want on your terms.
Number 1, it’s going to include replacing your current income. Now, just
for argument’s sake, we’re going to say that this is $60,000. This
is important later. Question number 2: “How much do you need to live where you
want?” And I’m talking about what’s that house that you want to live? What does
that dream house really look like? There’s a payment that is associated
with this. You see that $60,000 on replacing your income is $5,000 a month. But let’s say that you want to live in a beautiful
million dollar house. And maybe it’s not just a million dollar house. It’s a
location or it’s in the country or it’s on a beach or or something like that.
You find out that that house and the mortgage of that house is going to cost
you $8,000 a month. So, we have 5,000 replace your income
then there’s $8,000 to live in your house the way you want. And
here’s the third question: How much travel do you want to do?
Because once people have money, do you know what we want to do? That I’ve been to 40
different countries. I get it. I love world travel. Like travel freaking lights
me up. So, how often you want to travel? I find if most people have the money that
they would want to travel 2, 3, 4, or 5 times a year. And depending on
whether you want to travel with a backpack or whether you want to travel
like lavishly in style. If you’re going to pay out 10 grand a trip and take 4
trips a year, that’s $40,000. And that’s going to cost you somewhere around $3,000 a
month in travel. And then the last thing that people typically want is how much
do you want to get where you want to go? Transportation, right? Does it require you
to go by boat? Helicopter, plane, car? A lot of people in the beginning they just
want a really nice car. If a really, really, really nice car that would
satisfy you or cars. Let’s say that you needed a $3,000 a month budget for nice
cars. Then look at what we have just found out. To replace your income is $5,000 a month. To live in a house that you want is 8,000 a month. To
travel the way you want is 3,000 a month. To drive the car you
want a $3,000 a month. 3 plus 3 is 6 thousand plus 8
is 14 plus 5 is 19. This person needs $19,000 a month to produce the
lifestyle that they want. Well, guess what we can reverse engineer? $19,000 a month. How much money are you going to need to be able to produce that?
Let’s just assume for a moment that you’re doing real estate with me as one
of my partners and I can show you how to earn pretty easily 25% annual ROI?
Question is how much money would you need producing that? This is the math
that I want to show you: $19,000 a month.
How much does that a year? Well, I’m opening up my calculator right here. My
calculator looks like that on my phone. And I say $19,000. If I need that for 12
months out of the year, that’s $228,000. So, here’s the story problem: How much money do I need if it’s earning 25% to produce 228 thousand dollars a year.
Well, to actually get that number, you’ve got to be able to multiply that number
by 4. So, if I multiply that by 4… If I had $912,000… This number you can see on the screen right here. Earning 25% a year, it would produce $228,000 dollars. So, if your investments were producing 25% cash-on-cash ROI, you would
only need $912,000 to produce this lifestyle to
live the life that you want. If your investments are for example producing
only 5%, then you’re not going to multiply by 4.
You’re going to multiply by 20. And so $228,000 if you’re on society’s game plan, if you’re earning 5%, you need
4.5 dollars to live that lifestyle. This is at 5%
ROI and this is at a 25% ROI. What a wild dramatic difference. So,
in today’s video, I really wanted you to start realizing, “Wait a second. There’s a
certain number of deals or homes for me to buy that will give me the lifestyle
that I want, let me drive the car that I want, live where I want, travel the way I
want. Be with who I want and not have to have that job anymore.” It’s a number and
you can learn what that number is. No,w I know we covered a lot in a very short
period of time. You can re-watch this video again. You can share it with
somebody. Sit down with someone who’s good at math. If you don’t feel like you
are, break it down and watch it. And break this math down and realize that for you
to make enough money to support your lifestyle, you’re going to have to figure
out how to do the math. And math ultimately comes down to you knowing
“what do you want?” Today, I shared four questions with you. Number 1, how much
money would take to replace your current income? Because you don’t want that job
anymore, right? Number 2, what kind of house do you want to live in? Number
3, how much you want to spend on traveling a year? And number 4 how do
you want your transportation look? Friend, if you add all of that up, that’s going
to help you understand how much residual income you need. And you know the
ultimate vehicle for producing residual is… Its real estate. Listen, I wrote this
book years ago. You’ve heard me share it on other videos before. If you don’t have
this yet, get yourself this book. If you’ve gotten the book, do yourself a
favor, read the book. The book comes with a free game plan. Someone from my team
will contact you and say, “Hey, what is your game plan? Or do you need help with
the math? Or do you not understand it?” You can talk with a member of my team and
they can show you how many homes you need to buy and this will show you how
to do it. So, thank you so much for watching today’s video. I also have a
video showing how I retired by the age of 26. if you click on that over here,
that’s another great way to understand took the knowledge in this book and how
I put it into practice. So, between that video in the free book, I hope that
today’s video helped you get clear on… If I were to meet Kris live and you were
to say, “What’s your number?” And then just on those 4 questions alone you could
say, “That’s my number. That’s what I need. That’s what my investments are driving
towards.” And then we can reverse engineer how much real estate you need to do how
fast you want to do it to live the life of your dreams now.

14 Comments

  1. PirateShipps says:

    I would say FIRST, but im above that (and all of you)

  2. Austin Saintilme says:

    Kris kohn I am black so will it be harder to become a millionaire I am 14 by the way

  3. Millionaire Runway says:

    Great video

  4. YTBrandyBoii69 says:

    Another amazing video

  5. Chris Bird says:

    Lmfao

  6. RFAB Productions says:

    I'm starting real estate investing and always come back to Kris krohns video cause he inspired me to what REI can bring

  7. Mary Wakefield says:

    BRILLIANT:)

  8. RAM Real Estate Investing says:

    PASSIVE INCOME!!!!!!

  9. Raymond Henry says:

    🤯 Wow this is mind boggling

  10. Ace's Antics says:

    I ordered your book!!

  11. Joel Liew says:

    25% ROI wow sign me up!

  12. ikia malvia says:

    thank you

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