In the last article Sue had a capital shortfall of $400,000 in order to support her desired retirement lifestyle. This amount will vary for each individual and will be larger or smaller depending upon your income, age and ability to save money as a percentage of your earned income.

Broadly speaking there are only two ways to build wealth or assets: by being a lender or an owner (having equity) of productive economic assets. In broad terms, this means that you will be allocating your savings to either fixed income type products ( ie. GICs ) where you lend your capital at interest to an institution, such as a bank, or to buying productive assets that create increasing cash flow over time.