I remember reading this perspective from someone recently, and I kind of liked the way the author put this forward. Let me re-iterate what I read.
If you have two kids, as a parent you would try to make sure that you provide for the need of both your kids in most fair manner. Now consider equity as your third child, and make sure that all the expenses that you make for your kids are simply divided by 3 and the third poriton goes to equity. Note that you must treat this as expense and not investment.
Now, when you are 60 and your children are busy with their families and may and may not have time and willingness to provide you support, your third child will always be by your side and if you have been fair to him, he would have more than enough to provide for later years.
Isn't this an interesting analogy to bring home the necessity of retirement goal.
An individual may have many goals in life, however the top priority and number one goal in everyone's list should be retirement goal. This is the only mandatory goal one should have, others are really optional. And the key idea behind it is that if you don't provide for yourself who else will.
Ponder upon, if you havn't so far.
If you have two kids, as a parent you would try to make sure that you provide for the need of both your kids in most fair manner. Now consider equity as your third child, and make sure that all the expenses that you make for your kids are simply divided by 3 and the third poriton goes to equity. Note that you must treat this as expense and not investment.
Now, when you are 60 and your children are busy with their families and may and may not have time and willingness to provide you support, your third child will always be by your side and if you have been fair to him, he would have more than enough to provide for later years.
Isn't this an interesting analogy to bring home the necessity of retirement goal.
An individual may have many goals in life, however the top priority and number one goal in everyone's list should be retirement goal. This is the only mandatory goal one should have, others are really optional. And the key idea behind it is that if you don't provide for yourself who else will.
Ponder upon, if you havn't so far.
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