Rich Retirement

Many of us today whether young nor old one day we all will make this solemn decision of taking a bowl French leave from working getting busy as we look forward towards retirement with trepidation the anxiety stems from the unsavory stories and pictures of harassed and listless retirees.

Getting retired is as inevitable as falling asleep, so, you might as well get use to the fact and be prepared for it then retirement ought to be the golden years of one’s life, when you have all the time and money to indulge your every passion.

Rich retirement simply means being financially independent, being able to maintain a level and quality of living above the average, being able to indulge your passion without financial worries, being generally well provided for.

Plan Your Finances

It is a facts of life that things easily get done when there is a well drawn out plan on how to achieve them, for one who wants to succeed in life ought to have a well written out planned such plan must include a current realities, the expected goals, with the right time frame achieve it tools/medium needed to realize the goal and with the expected steps to be taken. With all these in place other things will fall into place, then you get these other things in place;

Write out your annual income and annual expenditure.

Determine when you hope to retire. This will let you know the time frame for your savings/investment also you as well need to determine how much money you need for retirement which gives you how much you need to save. The greater percentage of your income saved the earlier you can retire.

Save Early and Regularly

As human being we do put off what we should do now till later hoping that by then as times goes by then the condition will be right and that the big break we hoped for would have happened. Saving early and regularly is to start saving as early as possible. It is equally vital to save regularly and this is where discipline comes into play. Now consider these individuals Deborah and Paul.

Deborah was 25 years when she started working she decided she was going to save 30,000 annually towards her retirement of which she started immediately, Paul also started work at 25 years like Florence he started up with the savings of 30,000 would go to his retirement account. But unlike Deborah, Paul never got started until he turned 40 and suddenly realized he was sprouting gray hairs and few wrinkles here and there and there. He was lucky, though, for he had a lucrative job. To make up for lost time he upped his retirement savings to N70, 000. At retirement aged 65, Paul had saved N1.75million while Deborah N1.2million saved. But because of the power of compounding, Deborah retired with N44.09million and Paul had only N6.7million at retirement. The 15 years lost by Paul cost him about N37million.

Diversify

This cannot be emphasized enough for no matter how good or sound your investment vehicle is or how well you understand the vehicle, you don’t want to take a chance on it crashing, with your goods in it that’s why you need to diversify your retirement portfolio lets face it this way new and tested vehicles do crash sometimes.

Earn More Money

To achieve this cut your expenses and increase your disposable income of which you cam then invest or better still find another means of income.

The more money some people earn the more they spend on residual expense, that is luxury items that consumes money for maintenance like a vehicle and a house etc.

Finale

It is up to you to retire the way you want it or desire but you have to make a sacrifice now. Once you understand the concept of savings and investment, “it becomes painfully obvious that the small luxury items you think is nothing of are really costing you millions and millions in future wealth. Now you have it…so retire rich.