For a lot of people, especially those who just got their independence by getting their first official job, saving for retirement is not something to think about. After all, they just started living their lives, enjoying their freedom to do and experience a lot of things. Why save for the far future when you still have a lot of time?
Other people, on the other hand, believes in the saying “You Only Live Once”. The money you save will not go with you after you die. This saying is true, all people will face death at a certain point later on. However, it is also true that we don’t know how long we will live and how long will our physical and mental capabilities to work will last. Who wouldn’t want to live the remaining days of their lives being with their family and having a peaceful life?
A peaceful retirement may mean something different to each individual. There are people who would want to retire and live a simple life. There are also individuals who would want to travel the world or do things they haven’t done before. There are also people who want to remain active later on in their life, engaging in ventures such as investments or building a new business.
There are firms such as Harlow Wealth Management that helps in managing retirement money or setting up a retirement plan. But whether a person acquires help from professional or not, there are important things to do in order to ensure a financially secure and peaceful retirement.
1. Make a retirement plan
What you want to do and want you CAN do after your retirement is two different things. Ask yourself this question: what do you want to do after your retirement? Would you want to travel the world with your family? Would you like to play golf every weekend or just stay at home taking care of your grandchildren?
The truth is, the things you can do later on in your life will depend on the savings that you acquire while you’re working. The more demanding your lifestyle is, the more savings it would need. As early as today, think of what kind of lifestyle will suit you later on and make a retirement plan based on that lifestyle.
2. Save AND Invest
Saving is not enough to ensure financial stability after retirement. It is a good idea to save AND invest at the same time. While young, investing in stocks is a good way to make your money grow. Saving money and investing portions of it maximizes the protection for inflation and other economic factors that can affect savings.
Investing can still be done even after retirement. However, it is recommended to invest in investments that produce regular income. Bonds is the most common investment type that creates regular income, so it is a good investment to add in your retirement portfolio.
3. Spread your money around
“Never put all your money in one place” is one of the most common, but useful advice in investing. There are times when a certain investment is working really well, and there are also times that it will not. Diversifying portfolio is a good measure in order to prevent you from losing all your money when an investment venture is having a hard time.
4. Spend your money on things that last
Spending money on things that last might mean spending on experiences and memories instead of tangible items. This idea is also a good one, as memories will be precious when we reach old age. One way of having a peaceful retirement is by remembering the good old times and telling your experiences to your grandchildren.
But there is another way to interpret this saying. Spending money on capital assets, things that usually last in more than a year is also a good idea for your retirement portfolio. Capital assets such as a house, land, a car, or even an intangible asset such as patents, trademarks, securities, and mutual funds can help in maintaining your financial security and increase your net worth during your retirement.
5. Stick to your plan
The most important part of planning for your future is sticking to your plan. There will be times when you’ll be tempted to make a purchase for something you want instead of putting funds in your retirement savings. However, a successful plan can only be called successful if you stick to it and get the outcome you desire. In this case, a happy and peaceful retirement life.
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