How to achieve FINANCIAL FREEDOM or RETIRE RICH?
What does financial freedom means to you ? Retire rich, need not worry and have built sufficient assets, with passive income and sit down to relax, see the world..?
Asking the above questions will invite many interesting answers. In today topic, we would like to share with you some retirement risks and “challenge” your preparation towards financial freedom and retiring rich by anticipating the unforeseeable events.
Life is always unpredictable and that doesn’t stop when you retire. There are people who strike a lottery or get killed by snatches after retiring, or anything in between. Traditionally most people believe in the concept of “put this much in every month now, and withdraw this much every month then“. However, we have to be consciously aware that when we step into the “Financial Freedom” zone, there are 2 key aspects we need to protect :
i) the assets that give you the lifestyle and ;
ii) the health that let you continue to enjoy life.
Here are some situations that could challenge the traditional way of preparing for retirement and some fixes how to deal with them:
i) the assets that give you the lifestyle and ;
ii) the health that let you continue to enjoy life.
Here are some situations that could challenge the traditional way of preparing for retirement and some fixes how to deal with them:
The Risk : Retire before you are ready
Forced to retire before you’re ready. You might plan to retire at age 55 but your company might have different idea. According to LIMRA, a financial and insurance research organisation, averagely two out of every five people forced to retire before they planed to.
Forced to retire before you’re ready. You might plan to retire at age 55 but your company might have different idea. According to LIMRA, a financial and insurance research organisation, averagely two out of every five people forced to retire before they planed to.
The Fix : Have a Plan B
How about have a PLAN B, this could include a little side business. Business could be anything that will bring in income to cover for your family expenses. In worst case scenario simply just move to a smaller home or cut back on some travel.
The Risk : Retire and life too long
You could live very long, stay healthy and independent. It cost a lot of money to live month in month out.
The Fix : Invest to keep pace with inflation
Don’t avoid the stock market altogether and only locked up your money with bond and bank savings when you retire. Some money should be invested for growth. Invest with informed decision.
The Risk : Retire with illness
There are close to 3 million Malaysians are type II diabetes patients, it means if you have sweet tooth and your blood sugar on the rise when you approaching retirement, this is no good news. If Mr. Illness decided to pay you a visit, a chronic disease would require years of daily care, medication. Even you have bought medical or hospitalization insurance, it would only be helpful at the margin. The monthly maintenance expenses will eat into the retirement nest egg.
The Fix : Have adequate critical illness cover
Accumulate as much as possible in solid cash for retirement or just simply get a living or critical illness disease policies to cover the unforeseen or may be a long-term care policy that would cover the care.
