Have you tried computing how much you need to have during your retirement days (from the moment you stop actively working for money until you die)? Retirement is NOT an option – whether you like it or not, you’ll retire eventually either intentional or unintentional retirement. So preparing for intentional and unintentional retirement is a must! DO NOT DELAY YOUR PREPARATION FOR RETIREMENT AS THE EARLIER YOU PREPARE THE EASIER YOUR RETIREMENT WILL BECOME.
To prepare for unintentional retirement, which is normally caused by accident or ailment, you need to invest on a life insurance and personal accident insurance today. Why? Because you never know if you’ll be sick or be in an accident and these financial products will replace your income in the event that you are still alive but can no longer work for money due to accident or ailment. How much? Any amount is better than nothing to start with. But the most conservative amount for me is your yearly expenses now multiplied to the number of years before your desired retirement date (i.e., P300,000.00 yearly expenses X 28 years = P8.4M coverage for life insurance and personal accident insurance). The younger you invest on this, the more affordable it is. Contact your insurance agent to learn how much you need to invest on a consistent basis to get your desired amount and how many years you have to do that (you may contact 09289843636 for all your insurance needs).
To prepare for intentional retirement, which is normally a choice by the person, you need to save and invest your savings to investment instruments such as stocks, bonds, real estate, mutual funds, etc. today that will provide you the total amount you need by the time you retire. Why? Because it’s your responsibility to provide your needs and wants by the time you retire NOT your kids, relatives, ex-employer, government or anyone else. How much? Again, any amount is better than nothing. But the most conservative for me is your yearly expenses multiplied to 1 plus the average inflation rate for the past 10 years raised to the number of years from now until your desired retirement age (this is to get the equivalent value of your yearly expenses today on the year you retire) then divide it by a conservative yearly yield of government bonds or bank time deposit where you’ll invest your retirement money to provide you monthly passive income and then multiply it with 100% (i.e., P300,000.00 yearly expenses X [1 + 8% average inflation rate for the past 10 years]^28 years before retirement / 10% * 100% = P25,881,319.16 retirement fund). The younger you save and invest, the easier you’ll reach your retirement fund requirement. Contact your financial planner to learn how much you need to save on a consistent basis and where to invest your savings to get your desired amount and how many years you have to do that (you may contact 09289843636 to help you in planning for your retirement).
In order to have something tomorrow, you have to prepare for it today. Have a good life!
