Respite In Retirement
Even with a pension plan, experiencing financial freedom can be challenging in today's economy, what with inflation, increased cost of living and economic downturns. Fortunately, if you start preparing early, old age may not be so bleak after all.
Ready for retirement
Firstly, have a plan. Consider your health condition, besides the daily expenses you may incur in old age, and certain health matters you may be predisposed to. This requires you to alter your savings and spending habits for a secure and comfortable life in your twilight years.
Out With: "I never have to work again".
In With: "Retirement means I'll work less, but do more of the things I enjoy".
Why: It's proven that part-time work in retirement is beneficial for overall health. It keeps your mind alert, sense of purpose intact and your physical mobility in better condition.
Out With: "I'd paid for my home by the time I retire".
In With: "I may still have a mortgage to repay, but I'll also a healthy retirement fund".
Why: "Owning a home is like owning one big stock, which means owning a home is actually not a guaranteed retirement asset. The best way to be ready is to have ample cash in an emergency fund".
Out With: "So long as I'm putting enough in my little nest, I'll be OK".
In With: "Where I invest counts as much as the amount of money I save".
Why: Cash value fluctuates against global markets. If you have $100,000 saved up today, it's value in 20 years may drop to $20,000 by the time you retire. There are no guarantees on returns in savings per se. So to keep your money and its value relevant, you have to keep on investing - wisely.
Out With: "I'll do whatever it takes to get my children through college".
In With: "I need to take care of my retirement, or else I'll have to depend on my children in my old age".
Why: "Your retirement savings should always take precedence over your children's education. If they do well in school, they are eligible for loans and scholarships. The best help we can offer our children is by not burdening them financially in the future".
Ready for retirement
Firstly, have a plan. Consider your health condition, besides the daily expenses you may incur in old age, and certain health matters you may be predisposed to. This requires you to alter your savings and spending habits for a secure and comfortable life in your twilight years.
Out With: "I never have to work again".
In With: "Retirement means I'll work less, but do more of the things I enjoy".
Why: It's proven that part-time work in retirement is beneficial for overall health. It keeps your mind alert, sense of purpose intact and your physical mobility in better condition.
Out With: "I'd paid for my home by the time I retire".
In With: "I may still have a mortgage to repay, but I'll also a healthy retirement fund".
Why: "Owning a home is like owning one big stock, which means owning a home is actually not a guaranteed retirement asset. The best way to be ready is to have ample cash in an emergency fund".
Out With: "So long as I'm putting enough in my little nest, I'll be OK".
In With: "Where I invest counts as much as the amount of money I save".
Why: Cash value fluctuates against global markets. If you have $100,000 saved up today, it's value in 20 years may drop to $20,000 by the time you retire. There are no guarantees on returns in savings per se. So to keep your money and its value relevant, you have to keep on investing - wisely.
Out With: "I'll do whatever it takes to get my children through college".
In With: "I need to take care of my retirement, or else I'll have to depend on my children in my old age".
Why: "Your retirement savings should always take precedence over your children's education. If they do well in school, they are eligible for loans and scholarships. The best help we can offer our children is by not burdening them financially in the future".
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