The vast majority of U.S. citizens are not prepared for retirement and are behind on saving for their golden years. Warren Buffett is one of the richest people in the world and one of the single-most successful men to ever step foot in the Wall Street game of stock investing.
The chances of matching his success or bank account is virtually impossible, but anyone can achieve a retirement much like his. Buffett, 88, is still working and has shown no signs of slowing down, even at his advanced age.
Per The Motley Fool:
Staying employed that far into your 80s is no small accomplishment. As anyone who works in a physically demanding field, has ever had a health scare, or has faced a mandatory retirement age can tell you, keeping a job can get tough as you age. Buffett has created a strong structure around himself that gives him the opportunity to keep working long after others have stopped.
Of course, you’ll probably never become the CEO of your own company like him, but you can keep yourself engaged long into your golden years.
Key Factors to Buffett’s success
- A strong ownership stake in the company he works for
- Sufficient control over his money so that it works for him
- A job he clearly enjoys
- Work that he can accomplish even as his body ages
A Strong Ownership Stake
Buffett owns around 283,000 shares of Berkshire Hathaway’s Class A stock. At around $314,477 per share, that’s around $89 billion tied up in the company he leads. Like any owner of that stock, he has a say on the company’s board of directors and leadership team, and because he is a substantial shareholder, his vote is particularly impactful. As a result, as long as he wants to remain CEO and his mental and physical health hold out, he will very likely remain CEO.
It goes without saying that you will likely never own a big stake in a company that large, but you can own your own small business and have the same level of control. If you’ve never owned a small business, a good place to start is by looking to purchase the business of someone else who is ready to retire.
Going that route, you’re essentially buying yourself a job. And if you buy a proven business model or buy into a franchise, you are somewhat limiting your options to those within the structure of that business or franchise. Still, if your goal is to remain active, engaged, and involved well beyond an ordinary retirement age, being the owner gets you a lot of say over whether you get to do that.
Solid Control Over Money That Works for Him
Warren Buffett is worth about $89 billion but he is famous for his frugality, living in the same house he bought for $31,500 in 1958 and eating breakfast at McDonald’s for $3.17 a day. By keeping costs under control and having money that works for him, Buffett is financially independent.
That’s valuable to your quest to retire like Buffett, even if your net worth is well below 0.005% of his. Cash flow management is an essential skill for any household or small business. Bankruptcy from spending more than you take in, after all, is one of the only things aside from health that can force you out of a job when you own the company.
A Job He Clearly Enjoys
Even at 88, Buffett shows up to work and has given no indication that he plans to quit any time soon. Clearly, he loves his job. And when you love your job, it doesn’t really feel like work.
Likewise, even in your golden years, you still have 24 hours in your day and seven days in your week. If you are able to fill your time with personally meaningful work that you enjoy doing, why stop? Many retirees report boredom as one of the unexpected side effects of life after work. With a meaningful job you enjoy, you can fill your days far more productively than simply rocking on the porch, watching the world go by.
Work He Can Accomplish Even as His Body Ages
Buffett himself will tell you he’s not what he once was physically, so a major part of the equation here is that he doesn’t have a physically demanding job.
For that work, he needs a sharp mind, which is possible to keep despite a body that is showing signs of age.
Likewise, as you look forward to your own active career that lasts past a standard retirement age, you should plan for work that you’ll be able to manage as your body changes with age. Remember that being the boss via a strong ownership position and control over your own cash flow lets you choose what to do. You can choose what to work on based on what interests you and what you can accomplish, and as long as you’re the owner, nobody is really in the position to take that away from you.
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So while you will likely never see the type of monetary returns of a Warren Buffett, you can be just as active and have a job you love way past the standard retirement age. You too can own and control your own successful business and do it for as long as you like, and as long as your health holds up.
Even if being the CEO of a multinational company isn’t in your future, you can follow what worked for him to improve your chances of remaining successfully employed long past a traditional retirement age. The first and most critical step is to make sure you’re in control of your cash flows. From there, you can set the rest in motion and set the stage for many productive decades to come.