Planting retirement trees

Many of us encounters prospects who don´t understand the importance of pensions or retirement schemes. Rather then trying to explain the inner workings, let´s use an analogy for you to understand.

Imagine that the day you left school, somebody approached you and said: "During your lifetime, you´re going to be expected to plant trees. Only the trees that you plant in your lifetime will provide for you when you reach retirement, when you want to stop working. Only these trees can be cut down to build your shelter, to make firewood to sell for food and to burn to keep warm."

"If someone said that to you, how soon would you start planting your trees?" Based on your understanding that trees grow, getting thicker, explain compound growth.

Credit: Morwenna M. Clarke, CFP
MDRT member