How middle-income employees can retire earlier
The ability to retire and be financially independent earlier is a luxury. It offers peace of mind and even if we continue to work, it will not be as stressful as we know that it will not be a huge financial impact if we choose to stop for whatever reasons (illness, more personal time, better quality of life).
This site focuses on the “How”. It applies to anyone in any stage of his/her career. It can also work with anyone who has retired. Tri-O Retirement Plan is about setting up a budgeting system. Once the system is in place, it will work whether you are in the accumulation or decumulation phase of retirement planning. Simplicity is the key.
Tri-O Retirement Plan is about dividing all your assets or monies into three “O”s or three circles. The three “O”s are EXPENSES, RESERVES and INVESTMENTS. Implementing this can be as simple as having three separate bank accounts for each “O”.
In the accumulation phase, excess money from your monthly salary after deducting EXPENSES are ploughed into the RESERVES “O” and INVESTMENTS “O”.
In the decumulation phase, investment income from the INVESTMENT “O” will fund expenses in EXPENSES “O” and RESERVES “O”.
Simplistic? Yes. The foundation of this plan in the accumulation phase is there must be savings every month and an automated system to enforce the discipline of squirreling the savings into investments. In the decumulation phase, Tri-O Retirement Plan will propose investment instruments that can simplify the generation of investment income to take care of expenses.
The Tri-O Retirement Plan is simple and sustainable. It can be followed, without much intervention and efforts, in the many years of the accumulation and decumulation phases.
Next, let’s look at the FUNDAMENTALS of the model and how the Tri-O Retirement Plan works. If you like what you read, there is a section on HOW TO GET STARTED. There is a spreadsheet in that section to help you CALCULATE your monthly savings as well as your projected income from your investments. Feel free to CONTACT US if you need some help.
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