Retirement Planning

Retirement Planning -- How old are you now? What is your profession now? Or you will soon retire? How much money in your savings or how much the current value of your investment? Is the value of your investment and the results are expected to meet the lifelong needs of your old-age? If yes, do not answer the above question before. Your financial condition is at the level of financial freedom. All you have to do is be grateful.

But, what about for some old-people was already ahead of the retire, but they are still struggling to meet the needs today, and especially in the future? Anyone who entered the retire or stop working at a company should think about the parents without burdening anyone. So what will we can do to prepare retirement planning?


Prepare funds 
The one answer is prepare sufficient funds to finance their old age. Old age is no longer time to accumulate assets, but enjoy the own assets or at least be able to live independently without burdening our children-grandchildren and others families. In other words to prepare some retirement planning is define first what your financial needs in retirement.

And thank to God, the answer is there are only two, they are the need for daily living up to life in old-age and also needs to be able to pay for medical cost if you are sick.

The need for everyday life in old age is actually much less than when it was still in their productive age. The most important is the need to eat everyday. While the need for transportation costs would be lower. So does the need for clothing. It will be different from when we were productive.

With reduced transportation costs and the cost of purchasing clothing, so the monthly fee will be lowest. But, how much about the decrease? It maybe could reach 50 percent. In other words, the needs for your monthly cost, is only in highest earning 50 percent from the previous.

The monthly fee is different from income. When we were still productive, the need for real consumption should not exceed 70 percent of monthly income. If your monthly income reach to $1,000 per month, the monthly needs should not to exceed $ 700. Now with reduced about the needs, based described above, means that the necessary funds are not more than $ 350 only.

Then, how much your income after retirement? If you are government employees, the retirement income usually will get about 30% of the income. With the example above, it means that your retire income is $ 300. Concretely, there are still deficits compared to monthly needs after retirement which reached $ 350. Adding to, the needs to pay for medical treatment if you are sick. How to cover it all?

Productive assets
You certainly have the assets that you collect while still productive. These assets could be land, houses, vehicles, and may also be deposits or other investments instead. If you are lucky and have it all, you do not need to worry. Your deposit may be able to cover your lack of need for living costs after retirement and also about your health cost. But, what if you do not have a deposit and / or other investments?

There are two ways to set up your retirement planning:


First, you sell your fixed assets and move them into productive assets. If you have a home whose value is quite high, either because of size or location of a strategic home, consider selling the house and move to a smaller house with no longer located in strategic areas, so that more affordable housing prices.

The margin of selling your house or use it to invest at least deposited. From deposit interest rate, you can use to cover shortages of everyday life. In addition, you also must set aside funds to purchase health insurance policy that will be used throughout your life, as part of retirement planning.

Secondly, the very bad choice but not less. You still need to be active again, in the sense of looking for additional income. Could work part time or learn entrepreneurship by using capital from the assets you have. So that your business does not fail, of course, must be considered also to have the same partners who have more experience in that field. Should not have to feel "desperate" when starting a new business. Moreover, the price of its limited funds you have. It is better to choose a less risky business, but can provide additional income for you.

In conclusion, to be financially secure in old age, actually had to put up since early on when you are still productive. However, if the current had already entered the age of retirement, does not mean you will definitely be in trouble financially. Many roads lead to Rome. Some of the above alternative retirement planning might be for your input. Good luck.