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The $100 MBA Show
How To Retire In 7 Years Starting With $0 (Proven Step-By-Step Plan)
00:11:15
What if you had just seven years to retire and nothing prepared? Most will tell you it’s too late, lower your expectations, and settle for less. Omar knows that’s wrong.
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Introducing Fidelity Trader plus, the next generation of advanced trading from Fidelity. Customize your tools and charts and access them seamlessly across desktop, web and mobile. For faster trades anywhere you go. Try the all new Fidelity Trader Plus. Learn more about our most powerful trading platform yet@fidelity.com TraderPlus investing involves risk, including risk of loss. Fidelity Brokerage Services llc, Member nyse, SIPC and this just in. The Comcast Business Price Lock Guarantee is back. For a limited time, you can lock in the same great rate on gig speed, Internet and advanced security for five years, all from the company with 99.9% network reliability. Switch to the Comcast Business 5 Year Price Lock Guarantee today. Learn more at comcastbusiness.com ends March 29, 2026. I need to retire in seven years and I currently have zero dollars in savings. What do I do? That's a real question I got from a listener called Vicki. Vicki is 53 years old, former accountant, empty nester. She's smart, she's capable, she's disciplined, but she's starting late. And when most people hear that, the advice that comes fast and brutal all over the Internet is it's too late. Just lower your expectations. Be realistic. Is this even possible? Yes, it is possible. I know because I did it. And if I wanted to retire today, I could because I followed a very specific five step plan that I'm going to share with you today. Now, I got to warn you, this plan is not popular with cautious, traditional thinkers. It's not going to win you any applause from most of your friends and family who believe that retirement only comes after like working hard for 40 years and sacrificing everything. If you're starting late, saving harder and skipping lattes won't save you. The only way is something most people never consider building an asset you can sell. Let me show you how. Welcome Back to the $100 MBA Show. I'm your host Omar Zenholm where I deliver practical business lessons three times a week, Monday, Wednesday and Friday to help you start, grow and scale your business. I got a quick favor to ask if this show has helped you in any way. Leave me a quick review. You could do so wherever you listen to podcasts. This helps me and my team reach even more people who need the same no fluff practical business advice that you're getting from the show. It only takes a few seconds, but it makes a huge difference. Thanks for being a part of our journey to help others on their journey. Step one of five steps is Build and an asset, not another job. This is where Most people immediately go wrong. They hear retire and they think I gotta save harder, I gotta spend less, I gotta max out retirement accounts and hope the market just behaves and does what it's supposed to do. That works if you're starting at 25. It doesn't work if you're starting at 50. Time is not on your side. I gotta tell you the truth. You don't need another job. You need an asset. An asset is something that creates value without requiring your constant presence. It's something that can grow over time and can eventually be sold. Key point here. Some examples are like a software business, a content brand with products, a niche service that can be systemized. You don't need to be technical, you don't need to be famous, you don't need to be special in any way. You need to solve a real problem for a specific group of people with the experiences and skills you already have. That that's how assets are built. For example, Vicky, asked at his question, is a former accountant. She can hire other talented people to provide the service and start to scale and grow value in her company. Step two, and that's where we get into step two is to grow the asset to a $2 million in profit business. Notice I didn't say $2 million in revenue. $2 million in profit. What you have left over after expenses. This is where clarity matters. You don't need a billion dollar company or unicorn startup of some sort. No, you don't need a massive team. You don't need millions of followers on social media. You need a business that can produce results. And by results, I mean 400 to $500,000 in profit each year over the course of four to five years. That can slowly grow to become $2 million in profit. And that's very achievable if you have a high margin, offer one clear core product or offering tight operations, you're very thrifty when it comes and you focus on execution, on delivering on your promises. Now, most people never reach this stage, not because it's impossible, but because they get distracted. Too many ideas, too many platforms, too many pivots. Focus beats brilliance every single time. As they say, most businesses die of indigestion and not starvation. Too many ideas. By the way, if this kind of thinking is resonating with you, make sure you subscribe to the show because we have an upcoming episode that I'm working that's called five realistic side hustles for people who are over 50 that require no new skills. Even if you just need a Few thousand dollars more each month on the side so that you can retire comfortably. This episode will show you how hit subscribe so you don't miss that episode once it comes out. Step three, Sell the asset. This is the part people avoid talking about because they fall in love with their business. They see it being so profitable and it's growing. But listen carefully. You don't build a business just to run it forever. Okay? You can't because you will die. Right? You build it to create options for yourself. Remember, we're doing this as a means to an end. Because you got seven years to retire. Selling your business is not quitting, it's graduating. And the thing about selling anything is you need to sell it when it's on the up, right? When it's valuable, when it's promising. It's really hard to sell a business when it's really doing well. I get it. But that's the best time to sell because it's really hard to sell a business when it's on the way down or even plateauing. You want to be in a position of leverage. If you build a clean, profitable, well run asset, buyers will pay you a premium. Especially if they see growth year after year. They will pay 3x to 6x annual profit, sometimes more. But these are the averages for buying a business that has these types of profits. If you're making 2 million in profit, that's really impressive. That means if your business is earning $2 million in profit, you could sell your business for 6 to $12 million. That's not theory. That's how exits work. I know because I experienced it. And that lump sum becomes the fuel for your next chapter and leads us into step four. Running a business is complicated. There's dozens of software programs that you need and they're all so expensive. And since they come from different companies, they don't always play nice with one another. But what can you do, right? Odoo. That's what Odoo has all the software business owners need. We're talking sales, CRM, manufacturing websites, literally every kind of software. And it's an all in one platform. So it all works together. And it's quality software, so you're not sacrificing. It's simply a better experience than a hodgepodge of programs trying to fit together. You'd expect to pay a premium for it, right? But that's the most amazing part about Odoo. This interconnected suite of business software costs less than the mismatch of disconnected programs you're currently using. So the question is why spend more on software programs that are less efficient when Odoo's simple software program can handle everything for a fraction of the price? Discover how Odoo can take your business to the next level by visiting odoo.com that's o d o o.com Today's episode is sponsored by Upwork. Listen, Hiring help shouldn't be a headache or a drain on your budget. Upwork makes it easy to hire specialized freelancers quickly so you can get the expertise you need. Now I know this firsthand because I've used upwork for over a decade and we made some of the best hires through upwork. This is because they're a one stop platform to find, hire and pay expert freelancers across web and software development, data and analytics, marketing, business operations and more. It's free to sign up and posting a job is easy. Upwork helps you grow your business by giving you fast access to specialized talent across more than 125 categories so you can fill skill gaps, launch projects faster and scale support up or down without committing to full time headcount. I've hired software engineers, managers, marketing specialists, copywriters, social media experts. Upwork is truly amazing and with Business plus, you can access the top 1% of talent on Upwork. And with AI powered shortlisting, you can get matched to the right freelancer in under six hours. No endless searching required. Visit Upwork.com right now and post your job for free. That's Upwork.com to connect with top talent ready to help your business grow. That's upwork.com upwork.com now, before you start blowing all that cash, we're going to be smart. We're going to lower expenses and be intentional as you prepare for retirement. This isn't about deprivation, it's about clarity. It's about you knowing what you can live off comfortably. And in a way that feels good. Okay, when you know exactly how much it costs to live well, I'm not talking about being extravagant, but just feeling comfortable and feeling like, hey, you're retiring in your own style. Like for example, if your lifestyle requires you to spend like a million dollars a year, retirement feels impossible. But if your retirement is like, more like I'm going to spend $200,000 a year or $300,000 a year, it's very possible. Now you're playing a game that you can win. You're in a position of power. Okay, now that you know, okay, this is my budget for retirement. How much I can, you know, pay for my Expenses and live well. If I stick to this budget, even if it's just a little bit over the budget, I'll be okay. Now step five, invest in cash flow assets. Only now does traditional advice finally make sense because now you have some money to invest. After selling your asset, you want to move your capital into conservative income producing investments. Dividend paying investments, boring, predictable cash flow vehicles. Okay, I know this sounds a lot of jargon and by the way, this is not financial advice. Speak to an accountant or a lawyer, right? I'm just giving you the something for education purposes, okay? So that you can wrap your head around how this is possible at this stage. The goal isn't growth. The goal is income without effort because you're retired, right? You're not working anymore. So you're going to try to find assets like real estate that can generate rent, like, you know, putting money in the stock market and taking a dividend that can actually give you cash flow, positive returns and meet your financial goals. Now, one of the things I highly recommend is to invest in a financial advisor or a financial expert. I highly recommend you shop around because I shopped around a lot until I found a great one. Why? Because it's money well spent. These people are definitely well versed in how to invest money and they know how to get you to your goals. So you could say, hey, this is how much money I need every year to live comfortably. Here's my lump sum for my sale of my business. How do I invest this money so that I can have that reoccurring income? Now I highly recommend, when you're looking for a financial advisor, find somebody with a fixed fee. These people don't have a dog in the game. When they take some sort of percentage of your returns, then you know, it can be kind of skewed. I kind of like the fact that when they have a fixed fee, because when they have a fixed fee, they're going to do everything they can to help you out. And they're not biased. They're not going to try to convince you to do something that you're not comfortable with so that they can make more money. At least that's my experience. So why does this work and why do most people never do this? Most people try to retire by playing defense, by saving leftovers, right? By avoiding risk. But when you have limited time, when you have seven years to retire, this plan has to be all offense. It requires you to, you know, brush up your skills and develop some business skills. Focus up, right? You're going to have some short term discomfort from for the next seven years. But you're gonna have long term comfort and long term thinking of hey, oh, in seven years I'm gonna retire. Everything's gonna be smooth sailing from there once I sell my asset. And it works because you're not relying on time or luck or market's behavior. You're actually taking control of the situation. You're relying on value creation. And value always gets paid. Before I go, I wanna leave you with this everybody. Who's listening? Vicki, who asked today's question? If you're listening, you, yes, it is possible. But not with the old rules, not with fear, not with excuses. Seven years are going to pass away like this, right? Snap of the fingers. The only question is will you still be asking is it too late? Or will you be living a life that finally feels like yours? You're going to need to invest to earn that life. You need to invest these next seven years. It's going to be a little bit harder than the last seven years, but but you're going to take control and make it happen. If this episode clicked for you, then you're going to want to check out one of our previous episodes that we published called how to make your first million dollars in one year without getting lucky. No matter what your circumstances are. I'm not saying it's easy, but I'm giving you a game plan and it will help you understand what to build and why this plan will actually work for you. If you found today's episode helpful and you want more practical business lessons to help you start, grow and scale your business, the best thing you could is subscribe to this podcast, hit subscribe or follow on your favorite podcast app, the one that you're using right now. Whether it's Apple or Spotify or ever you listen to podcasts by hitting subscribe, you get our next episode automatically and it's the best way to support the show. It's absolutely free and it's a way for you to commit to growing your business. And now that you subscribed, I'll check you in the next episode. 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