FINISHING IT RIGHT: A Brief Retirement Guide for You.
Due to the cost and state of living here in the Philippines, most Filipinos miss the chance of having a stress and worry-free retirement. Filipinos are known to be very hard working. This is why after so many years of going head-to-head with life, we only deserve but the best when it comes to the latter part of our living. Sometimes, we often forget to plan our retirement wisely due to many priorities but still, it is very important because it will determine what will happen to us when our body starts to complain and become incapable of working for our own.
Here in the Philippines, the ideal retirement age is 65 but because still have the physical and mental capacity, many still work as late as their 70s. But no matter when you decide to retire, it is a must for be able to envision how to spend the rest of your life after many years of working.
The first thing on the list of most people that are about to retire is having a home. After all, it does not really sound practical to pay for monthly rent when you are already relying on your limited retirement funds. Well, there is no harm in starting as early as possible. In fact, there are many millennials who already started to invest as early as their 20s.
Most start with saving a small portion of their income to a bank account. Then after getting the hang of it, make it a point to allocate 20 percent of their monthly income towards their savings.
It may sound easy, but saving is not for the faint of heart. There is no pressure to deprive oneself of their basic needs and some of their wants. But, it is really ideal for everyone to practice discipline and avoid spending too much for things that are not necessarily needed.
Now, one of the most important question that you need to think of is how sound is your financial health?
As mentioned before, you have to be able to save, save and save as much as possible. However, you also have to consider other things and ask yourself about your financial responsibilities. A bachelor whose entire income goes straight in his pocket may have different sensibilities from those who have responsibilities with their siblings or parents.
Furthermore, you should think about your current expenses and outstanding liabilities. Perhaps settling your credit card bills first would be a good idea before committing to an investment. Allowing yourself to be free from these debts will be the best way to make investments in the future.
On the other hand, it is also equally important to prepare and assure emergency fund, as you can never be certain of the things that might happen. Having a contingency fund will help you build a buffer should unforeseen circumstances hamper your financial strategy.
Now, how concrete do you think your plan would be?
Keep in mind that the more concrete a plan is, the more you will be able to stick to it. Planning for your retirement takes logic and some math. A financial planner once explained that while there is no formula which can specifically address your retirement needs, there is a logical way to estimate how much you will need for your golden years. He said a rule of thumb that planners use is that 80% of your current income should be enough to cover for your retirement income and support your standard of living. If still in doubt, then this is the time you need to consult an expert to help you out understand what you need.
In the end, what everyone wants to experience is just a happy and contented retirement. However, it is what you do in your younger years which would ultimately determine how enjoyable and relaxed you will live your life in your remaining years.
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