“To enjoy a long, comfortable retirement, save more today.” Suze Orman.
This is the time when you are in your peek of earning as well as spending (including expenditure). Few years more and then you will take your retirement. Things which you want to do from long time, spend your time the way you want everything is going to be true. Your kids are in their higher studies or going to be. As you have planned things are all in place and your investments are working the way you want. However things do not go all easy for many people, hence it is very important in this stage to revisit all the financial goals and investments; make sure things are in the right path.
“As far as your personal goals are and what you actually want to do with your life, it should never have to do with the government. You should never depend on the government for your retirement, your financial security, for anything. If you do, you’re screwed.” – Drew Carey
How to start planning you finance?
Life insurance: Check how long you need the insurance which should be decided on your dependents.
Health Insurance: This is the most important insurance you must have including Super Top-Up. If possible have critical illness insurance also.
Emergency/Opportunity fund: Keep 6 to 12 months monthly expenditure in less risky liquid fund which are easily available at the time of emergency or any opportunity.
Financial Goal: Go through all your financial goals and investments. Make sure all are in place. You also have to decide how much percentage of your investment for your retirement should be invested on equities. For detail information on evaluating your financial investment, click here.
Do not overspend: You are already in your highest spending era, hence have a proper budget and stick to it. Use your credit card wisely and pay your complete bill on time.
Be debt free: Make sure you become debt free before you retire. This will give a peaceful life in your retirement.
After retirement income source: You should work on something which will give a constant source of income during your retirement time. You can think of a rental income, work as a consultant on the field you are working etc.
Plan on spending your retirement life: You should actually start thinking and come up with a detail plan how you are going to spend your retirement days. Doing nothing will make you weak and can effect mentally/physically. After retirement it will be very hard to find out what you should do to spend your time, hence it is best to figure out now itself. You can think of your hobby or working with an NGO or start a new business, anything you have in your mind, start working from now on so that you have a proper plan.
Place where to live after retirement: It is very important to decide where you are going to spend your entire retirement period. Hence visit those places which all are there on your mind. Go spend few days and try to understand whether this is the place or not.
Have a WILL: Make sure you have a WILL by this time. Also write down how your money should be used the way you wish.
Health: Not the least, you should really work on your health. As if you are healthy then only you will be able to enjoy the way you want your retirement life.
“Living each day as if it were your last doesn’t mean your last day of retirement on a remote island. It means to live fully, authentically and spontaneously with nothing being held back.” Jack Canfield.
So your checklist for Personal Finance as an APPROACHING RETIREMENT are:
- Make monthly budget and stick to it
- Cover with proper Health Insurance & life insurance(if required)
- Create an emergency/opportunity fund
- Revisit all your financial goals and investments.
- Use your credit card properly and always pay your complete credit card bill on time
- Be debt free before retirement
- Have a after retirement plan
- Have a written WILL
- Seek professional Personal Financial Planner help for better Financial Future. Do not trust anybody blindly in case of your Personal Finance
The Ultimate Financial Checklist for each stage of life are:
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