13/03/2021
Many of us wish to step back and enjoy the good life in our senior years. This is why retirement planning is important.
๐ง๐ข๐ฃ ๐ญ๐ฌ ๐ฅ๐๐ง๐๐ฅ๐๐ ๐ ๐๐ฆ๐ง๐๐๐๐ฆ ๐ง๐ข ๐๐ฉ๐ข๐๐
When youโre young, you have a lot of time but little money. In your working years, you have money but little time. Such conundrum is the reason why retirement is something that a lot of people are really looking forward to because it enables us to finally enjoy both our time and our money all at the same time.
But itโs not all rainbows and butterflies upon retirement - there are still many things that can go wrong financially. Itโs best to be informed so that youโll know what to anticipate and avoid when you retire. Here are the top 10 mistakes of retirees:
1. ๐ฆ๐ต๐ผ๐ฟ๐ ๐๐ฒ๐ฟ๐บ ๐ผ๐ฟ๐ถ๐ฒ๐ป๐๐ฎ๐๐ถ๐ผ๐ป. The fact is, you will probably live about 15 to 20 years more upon retirement (even longer hopefully). As such, you will still need to grow some of your money and invest a portion on some ๐๐ง๐ค๐ฌ๐ฉ๐-๐ค๐ง๐๐๐ฃ๐ฉ๐๐ ๐๐ฃ๐ซ๐๐จ๐ฉ๐ข๐๐ฃ๐ฉ๐จ like equity funds. While it is advisable to reduce the percentage of your portfolio in more ๐ง๐๐จ๐ -๐ค๐ง๐๐๐ฃ๐ฉ๐๐ ๐๐ฃ๐ซ๐๐จ๐ฉ๐ข๐๐ฃ๐ฉ๐จ, donโt totally remove them.
2. ๐๐ผ๐ฟ๐ด๐ฒ๐๐๐ถ๐ป๐ด ๐ฎ๐ฏ๐ผ๐๐ ๐ถ๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป. Inflation will not retire just because you did. ๐๐ค๐ช๐ง ๐ง๐๐ฉ๐๐ง๐๐ข๐๐ฃ๐ฉ ๐๐ช๐ฃ๐๐จ ๐ฌ๐๐ก๐ก ๐จ๐ฉ๐๐ก๐ก ๐ฃ๐๐๐ ๐ฉ๐ค ๐๐ง๐ค๐ฌ ๐ฉ๐ค ๐๐๐ฉ๐๐ ๐ช๐ฅ ๐ฌ๐๐ฉ๐ ๐๐ฃ๐๐ก๐๐ฉ๐๐ค๐ฃ; which is why I recommended investing in some equity funds during retirement.
3. ๐ฃ๐๐๐๐ถ๐ป๐ด ๐ฎ๐น๐น ๐๐ผ๐๐ฟ ๐ฒ๐ด๐ด๐ ๐ถ๐ป ๐ผ๐ป๐ฒ ๐ฏ๐ฎ๐๐ธ๐ฒ๐. The rule on investing still applies during retirement: ๐๐๐ซ๐๐ง๐จ๐๐๐ฎ. Maintain a healthy portfolio of cash, money market investments, bonds or bond funds, and a small portion on equity or equity funds.
4. ๐ฆ๐ฝ๐ฒ๐ป๐ฑ๐ถ๐ป๐ด ๐๐ผ๐ผ ๐บ๐๐ฐ๐ต, ๐๐ผ๐ผ ๐๐ผ๐ผ๐ป. A common behavior among retirees is they rush into a spending spree. Retirement to others is liberating and the urge to live beyond your means is a very strong temptation. Donโt rush. You still have a lot of time, so take it slow.
5.๐ฆ๐ถ๐บ๐ฝ๐น๐ถ๐ณ๐๐ถ๐ป๐ด ๐ฒ๐๐๐ฎ๐๐ฒ ๐ฝ๐น๐ฎ๐ป๐ป๐ถ๐ป๐ด. You probably will need more than just a will. ๐๐๐ฉ๐๐ง๐๐ข๐๐ฃ๐ฉ ๐๐จ ๐ ๐๐ค๐ค๐ ๐ฉ๐๐ข๐ ๐ฉ๐ค ๐๐ค๐ฃ๐จ๐๐๐๐ง ๐จ๐ค๐ข๐ ๐จ๐๐ง๐๐ค๐ช๐จ ๐๐จ๐ฉ๐๐ฉ๐ ๐ฅ๐ก๐๐ฃ๐ฃ๐๐ฃ๐. Learn about the many ways you can plan for your estate.
6. ๐ก๐ผ๐ ๐ฝ๐ฟ๐ฒ๐ฝ๐ฎ๐ฟ๐ถ๐ป๐ด ๐ณ๐ผ๐ฟ ๐บ๐ฒ๐ฑ๐ถ๐ฐ๐ฎ๐น ๐ฒ๐บ๐ฒ๐ฟ๐ด๐ฒ๐ป๐ฐ๐ถ๐ฒ๐. 60 or 65 is still a relatively young age, so the need for medical concerns is not yet taken seriously. However, while the spirit is still willing, the body is not and it will be good to provide for a time when we will experience physical ailments.
7. ๐ก๐ผ๐ ๐ฟ๐ฒ๐๐ถ๐ฒ๐๐ถ๐ป๐ด ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ๐ ๐ฎ๐ป๐ฑ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐. The need to ๐๐ค ๐ ๐ฅ๐๐ง๐๐ค๐๐๐ ๐ง๐๐ซ๐๐๐ฌ ๐ค๐ฃ ๐๐๐ฃ๐๐ฃ๐๐๐จ ๐๐ฃ๐ ๐๐ฃ๐ซ๐๐จ๐ฉ๐ข๐๐ฃ๐ฉ๐จ should be a primary concern of any retiree. While it is not a good idea to worry too much, being too carefree is not a prudent thing to do. As I said earlier, you still have a long time to go.
8. ๐ฅ๐ฒ๐น๐๐ถ๐ป๐ด ๐ผ๐ป ๐๐ผ๐ฐ๐ถ๐ฎ๐น ๐๐ฒ๐ฐ๐๐ฟ๐ถ๐๐ ๐ฎ๐น๐ผ๐ป๐ฒ. Seriously? SSS is meant for a retiree to survive, not for a retiree to enjoy his retirement. Do the math - ๐ฃ๐ค ๐ค๐ฃ๐ ๐๐๐ฃ ๐ก๐๐ซ๐ ๐ ๐๐๐๐๐ฃ๐ฉ ๐ก๐๐๐ ๐ฌ๐๐ฉ๐ ๐๐ช๐จ๐ฉ ๐๐๐ ๐๐๐ฃ๐๐๐๐ฉ๐จ.
9. ๐ ๐ฎ๐ธ๐ถ๐ป๐ด ๐ฟ๐ถ๐๐ธ๐ ๐บ๐ผ๐๐ฒ๐ ๐๐ถ๐๐ต ๐บ๐ผ๐ป๐ฒ๐. While I recommend that a retiree should still be investing, going into high risk or speculative endeavors might not be a really good idea.
10. ๐ช๐ผ๐ฟ๐ฟ๐๐ถ๐ป๐ด ๐๐ผ๐ผ ๐บ๐๐ฐ๐ต. Alas, while prudence is key during retirement, fear is a very crippling mindset. So long as you follow common sense and have done your best in preparing for retirement, try to relax as this is what retirement is all about. If you are always fearful that your wealth will not be sufficient during your retirement, you may not live long enough to actually enjoy that wealth.
In anything about life, balance is key. You have to prepare properly for retirement but you need to enjoy it as well. ๐๐ค ๐ข๐๐ฉ๐ฉ๐๐ง ๐ฌ๐๐๐ฉ ๐๐๐ฅ๐ฅ๐๐ฃ๐จ, ๐๐ฉ ๐๐จ ๐๐ข๐ฅ๐ค๐ง๐ฉ๐๐ฃ๐ฉ ๐ฉ๐๐๐ฉ ๐๐ฎ ๐ฉ๐๐ ๐ฉ๐๐ข๐ ๐ฉ๐๐ ๐๐ข๐ฅ๐ก๐ค๐ฎ๐ข๐๐ฃ๐ฉ ๐๐ฃ๐๐ค๐ข๐ ๐๐๐จ ๐จ๐ฉ๐ค๐ฅ๐ฅ๐๐, ๐ฎ๐ค๐ช ๐จ๐ฉ๐๐ก๐ก ๐๐๐ซ๐ ๐ ๐ข๐ค๐ฃ๐๐ฎ ๐จ๐ค๐ช๐ง๐๐ ๐ฉ๐ค ๐ฉ๐๐ ๐ ๐๐๐ง๐ ๐ค๐ ๐๐๐ก๐ก๐จ ๐๐ฃ๐ ๐๐ญ๐ฅ๐๐ฃ๐จ๐๐จ ๐ฉ๐๐๐ฉ ๐๐ค ๐ฃ๐ค๐ฉ ๐๐ฃ๐. Ultimately, it is best to secure an insurance that can cover for your ๐ง๐๐ฉ๐๐ง๐๐ข๐๐ฃ๐ฉ ๐ฃ๐๐๐๐จ.
CTTO:
By: Randell Tiongson-RFP
