Retirement is the stage where an individual decides to leave the labor force permanently. The usual retirement age for most countries is 65.
The Philippines has been a retirement destination for most foreigners because of its low cost of living. They enjoy a lifestyle that’s cheaper than what they would pay in their developed homelands.
However, many still worry about financial instability, which leads them to ask questions like, “Can I Retire Yet?” This uncertainty costs them to sacrifice the quality of life to sustain their personal and family needs.
Can I Retire Yet?
Before you decide on leaving your career, determine first if you are prepared by answering this question, “Can I Retire Yet.”
These factors will help you pinpoint the onset of potential problems and areas for improvement.
● Decide your most probable retirement age based on your medical history and assurance of employer/family support. You should also factor in your passions in life and how your career affects your fulfillment.
● Your annual and monthly expenses that determine the income that you need to sustain your standard of living upon retirement.
● Geography also matters because each country differ in terms of commodity prices.
● The state of the market movement has an impact on your savings and investment ventures.
● Realistic trends and plan values affect the projection of your investment profits.
● The inflation rate per year has a negative influence on your investment values.
Financial Tips for Retirement
Life can be inevitable, and whether you think you have government or family support, nothing beats a prepared man. Thus, you need to consider these expert pieces of advice to secure financial stability even after retirement.
1) An essential step to make enough income is to start saving early in life. For most of us who are employees, the best way to save is to set aside savings first before you spend. That is, using the equation INCOME less SAVINGS = EXPENSES. This is the right way to save money from paychecks.
2) Some employers have initiated retirement plans for their employees. Take advantage of this which equates to free money. You can do this by choosing the maximum salary contribution available in the program.
If your employer does not have this, consider doing a regular investment plan. Every month set aside a specific amount that will be put into managed fund investments such as mutual fund or Unit Investment Trust Fund (UITF). These are pooled investments managed by an expert fund manager. Ask your bank about it.
3) Consult with a personal financial advisor to help you understand all your investment options to grow your savings.
4) Allocate your financial and property assets based on risks and investment time prospects. Be realistic as well, and keep in mind that small investments will not necessarily produce significant income.
5) Create risks method like diversification to preserve portfolios during unstable periods in the local and global economy.
6) The first investment should be in the form of mutual funds or Unit Investment Trust Funds (UITF) because these allow clients to spontaneously buy small stakes in numerous stocks, which will yield positive outcomes.
7) After years, you can opt to take higher risks by investing in growth equities that target certain sectors and areas.
8) Always remember to buy assets that produce passive income. Stay away as much as possible from liabilities which drains money out of pockets.
Retirement can be terrifying, mainly because you will lose that sense of security that you get from having a stable job and income. However, this part cannot be avoided. Thus, one must take the necessary steps to secure a comfortable life in the future.