RETIRE or not to RETIRE?
One of our common goals is to retire comfortably…while we chasing and dream of that,how much is enough? What is the preparation we must aware of? and will we really can enjoy our retirement or retired for enjoyment thereafter?
First of all the big thing HEALTH!
Because of the advancement in medical technology, humans are living longer than ever.Also, with a balanced diet, exercising and managing the stress in our lives have helped to reduce the chances of hypertension, heart disease, osteoporosis, arthritis, rheumatism and some cancers. The average life expectancy for Malaysian is 74 years (2012 estimate) see Malaysian living lifespan
By having protected by a comprehensive Medical Coverage Insurance will definitely ease the burden on medical expenses!
Next in the list FINANCES…
As a person approaching retirement, he / she must acquire financial insights and discipline to ensure they have sufficient money to last the rest of their life.During retirement, there are some expenses that will be reduced and some will increase as they are not apparent before retirement. It is important we take all these expenses into consideration in the retirement planning.
Additional expenses that are not apparent before retirement :
· Higher medical or dental bills
· Higher cost of home utilities
· Higher home upkeep or maintenance
· Higher recreation, travel or eating out
· Contributions or gifts (for grandchildren, charity and etc.)
Expenses that are reduced:
· Mortgage payment
· Transportation cost
· Children expenses
· Income taxes
· Food
· Clothing
Long awaited TRIP!
Retirees should be encouraged to take a trip. However, most people who have just retired are taking their big 2-3 months trip, only to feel deflated and depressed after they return home.It is more advisable to consider a series of smaller holidays and spread over the coming years.
Dilemmas of new BUSINESS venture
Many will consider venture into some sort of business during retirement. If starting off or venture into a business is a serious consideration after retirement, it is encouraged to understand the following issues :
· working capital requirement. While start up capital is an one-off payment, working capital represent a continuous cash outflow.
· the business cycle, try to understand whether it is a new introduction, harvesting or
maturing cycle.
· the skills and expertise require to run the business successfully
· the business structure, whether a sole proprietorship, partnership or limited company
a better option from tax planning perspective ?
After many years of saving how long will your retirement savings last?
If You Withdraw Both Principal and Interest,
How Long Will It Take to Exhaust a RM 100,000 Retirement Savings Fund?
If we knew exactly how long we were going to live after retirement, this arrangement might be satisfactory. The reality, of course, is that none of us knows how long we will live after retirement. This uncertainty is what makes it so difficult to avoid the risk of outliving retirement income.
With the small sum in EPF of 166,416 (source EPF annual report 2011) and lifespan at age 74, will you be able to retire comfortably or will you REALLY enjoy Retirement without WORRY ??
thanks for share.
You are welcome city.