5 tips on how to plan for retirement
Many people when they retire they will be confused as the money they have saved all the time for their retirement is not enough. Most will have to continue working beyond 55. Of course many of us will dream for early retirement.
I recently heard from my friend that his brother is going to retire in another 5 years time. He is 40 now and planning to retire at the age of 45 and enjoy life. He will be looking to bring his wife and kids to see the world. I am pretty sure many of us is dreaming for that sort of life. But can we achieve it by then?
Talk is easy but when comes to practical, its kind of hard. Below are a few steps one need to take if they are looking to plan for their retirement
Start planning for retirement early
It is never too early to play for retirement. It may seem a distant future but early planning will ensure one will enjoy their golden years without much worries or headaches.
Think about how you want to live and where
The place we want to spend our time when we retire is also important. Make sure we calculate the amount of money needed to ensure that we don’t overspend our money when we decide to settle down at a certain place
Plan for the possibility of living longer then expected
One must be prepared to have a fixed income for a 20 to 30 years period. Medical insurance is also important and must be sure that protection for medical bills and expenses is well prepared and covered.
Seek advice from expert financial planner
Do not be shy to scared to share your financial plans with a financial planner. They will know how to plan a retirement according to your needs because they are the expert.
Be debt free
Pay your home loans, car loans and all your major cash flow drains as quickly as you can. When you are debt free, your retirement money can be used to enjoy your golden years with your love ones.
Conclusion
Start now as it’s never too young to start planning for retirement. Don’t only start to prepare the umbrella when it rains as you might get wet by then. Prepare the umbrella before it rains. Don’t be caught off guard when you retire as you will be caught with your pants down if you don’t prepare well when you retire!
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5 Responses to “5 tips on how to plan for retirement”
By Mrcoolku on Dec 5, 2009 | Reply
I wish I know it when I was 18 or younger. I wasted much of my times during uni days. Obviously, my retirement need to delay a few years already cause I realized it at the age of 22. Or maybe i need put double effort to speed up.
By Kampung Boy on Dec 5, 2009 | Reply
@Mrcoolku
How old are you now Mrcoolku? If you are only 22 and you are worried, trust me you should be worried at all. There are many ppl older then you but still haven’t planned anything! -_-
Anyway i am in my mid twenties and i have bought an endowment plan for myself where when i retire at the age of 55 i will have around 200k ++
That is not enough i know but that is just a beginning of many of my retirement plans.
By Lai Seng Choy on Dec 6, 2009 | Reply
I started my retirement plan when I was 28. I also wasted great amount of time on playing around without proper savings before that.
Since then, I achieved my first target to fully settle my housing loan within 5 years tenor when I was 31. I am now accelerating my plan on early retirement (target by the age of 42) with support of sufficient insurance coverage and investment plan. I feel great when I see that I am closer to my target each and everyday. What am I planning to do during retirement as I will be still considered young? Books writing.
FYI, all my financial plans are do-it-myself. I do not trust any financial planners as I come across many of them are not planned based on my best interest. They just simply earn for living.
No matter how, I wish everyone of us to have comfortable retirement life, soon.
By Kampung Boy on Dec 8, 2009 | Reply
@Lai Seng Choy
Can you share with us how you started your retirement plan at the age of 28? Did you buy property or invested heavily on savings plan?
How did you pay off your housing loan so fast?
It is hard now a days to find financial planners that plan on needs. Yes, they do plan on their needs instead of ours! -_-
How many more years to retirement bro? ^^
By Lai Seng Choy on Dec 10, 2009 | Reply
Actually, I allocated most of my monthly savings to partially settle on monthly basis. The purpose, to fully settle my housing loan that was bearing high interest charged during financial crisis in 1998 ASAP. I was single and stayed with my parents. As for my own house, I rented it out for rental income. It needs real discipline to get it done. Actually, what I did was to set the target and work towards my target, no matter what.
When I was 28, one year after I get married, I felt I need to provide financial security for my wife and my future kids. That is why I started to buy books and attend seminars to learn how to plan. The plan, of course, is reviewed and improved from time to time when I gain more experience in money management. I am now attempting to share my money management experience in my blog. Do feel free to visit.
I do not invest in properties as it does not provide good liquidity. Instead, I invest in REITs. I also buy shares. Of course, sufficient insurance coverage in a must.