Yesterday we attended a seminar. This particular seminar are for government employees who were retiring soon from decades of employment and among those participants are my mom.
The night before we attend that seminar conducted by a government agency, we had a talk with my parents. What could be the topic for tomorrow's seminar? I thought it was a wealth management or financial planning seminar for retirees and it would be great if I can learn a lot while still young.
But we were wrong. It was a little bit different from what we expected because it was a seminar for the technicalities of how to compute and how a retiree could claim their retirement fund.
I did learn a lot from the presentation, I learned the basic of computation and criteria how to measure ones retirement fund and monthly pension but I wish there's more. See sample formula below.
As we go on with the presentation, participants ask great question and pretty hard cases but these question are in particular only to technical side of computation and conditions on how to claim.
Nobody ask if what's the best way how to manage that funds. Learning that in young age would be a golden nugget for me and to all readers who are still young professionals.
Learning the money management part is really a daunting task and requires lot of time learning and doing. If you put up something on early or middle of your career, you certainly did a good job having the courage to take some risk. But what if you aren't able to do so?
Psychology of a retiree
What do you think they have in mind? I just always telling my mother just make it simple not to live too fancy.
Different person has different situation and family set up. But I do hope at the end of working days, priority must put in first place. It's very tempting to spend and get what we can't afford during our career.
Yes there's no problem pinching some of that fund and put in a nice brand new car, but think about it for a minute. Considering paying some leftover loan and house amortization by this point.
Getting all the pleasure from the fruit of our labor is very fine to me but as long as we kept something because we can never know when emergency and crisis comes. There's some risk at the age of 60 and that is health issues.
If we were unable to build another source of income by that time and we doesn't save too much, retirement fund will definitely deplete at the blink of an eye and the only option we got is just to wait month after month from pension. See ways to save here >>
"Money without financial intelligence is money soon gone" - Robert Kiyosaki
Where do retirement fund should go? At this point we should learn to grow and learn the discipline of money handling.
Possible areas to consider putting the fund. Consultation and planning should still be considered.
- Paper Assets that are conservative type of investments with minimal risk. It's difficult to recover from a lost at this point. High risk should be only taken during younger years. Research and consulting would be wise.
- Real Estate that gives cashflow. There's bunch of real estate properties not all are investments.
- Traditional business. Start small and cautious before getting into big ventures. Research, discipline and passion would be require.
- Savings account. There's little risk but the inflation of goods and services prices. Very advisable for emergency cases. If you can lived with the pension alone it's fine. But what if there's so much people still relying on your fund and pension? These would get into different topic to discuss.
Homework
Every type of investment and venture requires different mindset. Acquiring those mindset should help you on what you prefer. At the peek of age, we really need to take care of our self and those fund that we earned.
We always have the choices to pick the right lifestyle for us. Just to live as it is, simple or even more.
Finding worth doing at retirement is I think is a must. We can't just sit on our rocking chair and watch TV all day? Or just to take care of their grand children alone. Many people suggested this as this were they think are appropriate at that time. But for me I know you can still do something and find worth doing.
We always have the choices to pick the right lifestyle for us. Just to live as it is, simple or even more.
Finding worth doing at retirement is I think is a must. We can't just sit on our rocking chair and watch TV all day? Or just to take care of their grand children alone. Many people suggested this as this were they think are appropriate at that time. But for me I know you can still do something and find worth doing.
Be cautious
In time, there are people you would encounter offering a lot of promises and lot of things. Never forget to consult, research and ask from reliable resources before putting in that hard earned money.
As with all information on this site the above is provided as general information and not advice or direction for your investments. Seek professional advice for your investments.
See related article here
Why You Need Emergency Funds
Risk Takers
Feel free to subscribe to our mailing list below.
Comment Box is loading comments...
