Happy Retirement Facts
Introduction By Bea Rico Of BPI-Philam Life
The moment you start earning money is usually the time that you begin thinking about your future. Whether you’re a full-time corporate employee, a business owner, or a freelancer, you should start considering where and how to make the most of your finances early on. Your goals and priorities tend to shift as you go from one life stage to the next. This change also reflects on your income, spending habits, expenses, and lifestyle. With this, it’s crucial that you understand the different investment opportunities available so you can choose the one that best suits your specific situation. Investing is a major financial decision that is a lifelong process, which is why it requires considerable amount of thought and research. Wherever you are in life right now, there’s a type of investment that fits your current stage and financial position.
Investing for life stages
We all have a different approach towards investing and money. One thing is for sure: your life experience and where you are in your life cycle affects the investment vehicle you choose, the financial risks you take, and your overall spending habits. For instance, you’ve just gotten married and you’re expecting your first child soon. You’ll have to balance your finances to cover for the additional expenses that come with a new baby while preparing for your child’s education. Perhaps you’ll need family insurance or you can look into educational plans. When it comes to planning for retirement , however, it’s best to start while you’re still young so you can maximize your gains. It’s difficult to depend on pension alone once you retire, for it may not be enough to support your lifestyle and the health expenses associated with aging. Of course, make sure to build a sizable emergency fund so you don’t have to worry about your finances when the rainy days come. Before you start investing, it’s crucial for you to have a solid grasp over your spending and savings habit because once you begin, you have to be 100% committed to growing your investments.
Below is an info graphic that excellently breaks down major life events together with the investment options you may want to consider. If you do it right, these investment vehicles can help you reach your financial goals.
Modern retirement planning began with Vickie Robin’s 1992 book Your Money or Your Life. Mindset is vital to dealing with money. The book asked its readers how much do you really need. Less material thing means more money. Vickie Robin’s works deal with being financially stable not just retirement planning. The World has changed a lot since 1992. The stock market is in a bull market, Low unemployment, and new technologies create new opportunities for people to earn money. there is a movement in the personal finance community called the fire movement. Happy retirement in this sense is retiring before the age of 40.Financial independence retire early. It is possible but there is a lot of focus on savings while there is not much focus on multiple income streams. You would be a millionaire in 18 years if you invested in SP 500 or municipal bonds. It starts with what type of lifestyle you want live. Do you want to travel several times a year or do you want to live in a warm place single family but with a great view and a hot tub? People in the Midwest can live comfortably on less than $3000 a month while people in San Francisco or NYC may need 3x that income to achieve a similar lifestyle. The yield on bonds get lower and lower with each year due to interest. You must take time to research income producing investments or other ways to earn money . We encourage people who retire early or retirees in general to find a purpose. First step is transitioning from work life to retirement life.
Happy Retirement How much do you need?
Not everyone will be good on expensive cruises. In order to retire at any age, a general rule of thumb holds that you need to save up at least 25 times your annual expenses. In Alabama or Arkansas $30,000 may the annual expenses for 1 person. So you would need at least $750,000 saved up.
Happy Retirement Things To prioritize
Money is all and good. Working 10 more years can earn you money. The true cost may be years of life and added stress.The maximum possible Social Security benefit in 2019 for someone who retires at full retirement age is $2,861. In order to collect the maximum benefit, you would need to earn the maximum taxable amount for 35 total years. That is $132,900 or the cpi equivalent over 35 years. Maximize your income. Then reinvest in assets. Most people go for stocks. They are shares in a large successful business. Open either a robinhood or vanguard account and start training. Real estate is great . You will need cash for unseen expenses and dealing with tenants. Assets with monthly cash flow as they can replace your job income.It is very possible to become a millionaire by investing in these assets for 10 years this man achieved it. Low cost index funds and 401k. The latter maxes out 55,000 a year-18,500 a year plus your employer’s contribution.
Happy Retirement Health care
Enjoy a happy retirement with great health care. Health savings account is great for contractors and retirees.
Happy Retirement Work Life Balance
Retirees who have no particular hobby or retirement job planned are more likely to suffer from depression. It can be difficult to go from working to retired, particularly if you’ve always defined yourself by your profession. There is another extreme group. Those who want to travel without the burden of a job. People need purpose. Even if it is volunteering. You will need to be frugal for a few decades. No more credit card debt and cook your own meals.
Happy Retirement For Younger Readers
If you are under 40 there is a lot opportunities you can take Advantage of retire earlier. Education is important . Certain states like New York offer free tuition if you fit a certain income requirement. If you don’t want to go through higher education community colleges or trade schools offer career opportunities without massive student loans.
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