What is the goal of our Exit Strategy?
Level 5 - Ultra-rich - $1 million or more a month
Level 4 - Rich - $1 million or more per year
Level 3 -Affluent - $100,000 to $1 million per year
Level 2 -Middle Class - $25,000 to $100,000 per year
Level 1- Poor- $25,000 or less per year
* $ in USD
For Robert, he took 9 years to move from 0-> level 3 (Affluent), 5 years from level 3->level 4(Rich), and 3 years from level 4->level 5 (Ultra-Rich). From the book “Retire Young Retire Rich”:
“Once we decided on our goal, in 1985, we worked backward and developed our exit strategy, our investment plan, and then and only then did we determine our entry strategy. Once we had our exit strategy we knew what to do and where to begin.
We created our plan in 1985 and exited in 1994. In 1985, we chose a plan that would get us to the affluent level quickly as well as give us the required education and experience that qualified us to move on to the rich and ultra-rich level.
Because our investments brought us more than $100,000 in passive income per year, we were able to move on to the rich level simply because we had time,money and the basic qualifications to move on to the next levels. We went from the affluent level to the rich level in five years.Next stop is the ultra-rich level of residual income. If things go as planned, that should take three years.
It was to build businesses and invest in real estate… we made mistakes,corrected and learned….we started out slowly but we gained education, experience, and friends of the same mind-set.
The good thing is that we are working less and less, while earning more and more. Things are going according to plan.”
