Retirement is all in the planning, if you are planning to live out your Golden Years in style and comfort. Unfortunately most of us fail to plan adequately for our retirement. Why?
Quite simple it's intangible. It's too far off and we can't quite see ourselves retired. It's one of those things that will come around one day, but until it does, we have too much else on our plate to worry about it.
Besides, we are saving something so it will be OK. Think again.
Remember when we were 20, 40 seemed a lifetime away? As sure as you will/have hit 40, retirement will happen, too. And sooner than you think (which is good or bad, depending on how you have planned it).
Things ain't what they used to be
Most of us have been brought up with the vague notion that just as our grandparents did, we will retire in our sixties when we are forced out of employment, and that as long as we are putting away some savings, we will somehow manage a comfortable retirement. But exactly what is it you are saving for? Things aren't as they used to be, and we are facing a much different retirement scenario than our grandparents. With the rising costs of inflation, the trend towards a nuclear family and the propensity to live longer, retirement could be a long, hard stretch if we don't get the planning right. Government aid and our CPF funds are not going to go far when we could live 30-40 years beyond retirement!
Think financial independence, not retirement
Who says you have to retire at 62? If you have the funds to retire before, why not?
These days, we think in terms of financial independence rather than retirement. Financial independence is an actively planned for state where you become free from financial obligations and are self sufficient without having to work for an income. When you are financially independent, you can choose when to retire. You can be financially free at 45 and choose to work because you love your job, or retire and start living the retirement life you planned. But that's just it!
Without a plan, it's simply not going to happen. Make a plan that makes it real
It's time now to create a very clear picture of when you wish to retire (remember it can be earlier than 62 if you plan it right now!) and the lifestyle you wish to pursue upon retirement. What are your financial commitments now? What commitments will you have in the future (e.g. your children's education)? Factor in the costs of rising inflation, escalating medical costs and the luxury of travel and visualise the average day in your life when retired. Your next step is to contact a financial advisor that won't just try to sell you products. You need a financial advisor that will listen to your plans and goals, will sit down with you and will devise a financial plan that will make your retirement plan work. A good financial advisor will recommend the financial tools that are going to get the job done. A vague plan is no planHowever, if retirement to you is a vague dream, your financial advisor is going to be as much in the dark as you are.
Don't plan to fail by failing to plan.
Visualise your future goals now, and let your financial advisor set you on target to live the long, comfortable retirement of your dreams!
"You only live once, but if you do it right, once is enough." ~Mae West
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