Retirement can seem like a reward after decades of hard work. For many, it means freedom from the daily grind, but it also means that you lose access to your usual sources of income. This can be a scary thought, especially when you think of the increased need for healthcare as you grow older.
This double-edged sword that comes with retirement should not stop you from looking forward to this stage in your life. Here are some handy tips that can help you enjoy your retirement with both your health and wealth intact.
1 Protect your wellness by ensuring your income through low-risk investments. Build a retirement fund that also takes your wellness into consideration. Wellness does not mean the absence of disease. It is achieved when both the mind and body are balanced and well-functioning. Preparation is an effective strategy in ensuring that your retirement is not riddled with anxiety.
It is never too soon to prepare for retirement. In fact, the earlier you start, the more chances for you to grow a nest egg. In building a portfolio specifically for retirement, go for low-risk options, such as treasury, government, or corporate bonds. If investing in the stock market, opt for preferred or blue-chip stocks.
Low-risk investments usually mean that your returns are more conservative, but these give the benefit of financial stability in the future.
2 Diversify your portfolio to gain funds for health and wellness pursuits. While low-risk investments are great for your peace of mind, they do not always produce the highest financial yields. If you want to live comfortably, then you should be more active in trying to get bigger returns from your investments.
Set aside a certain amount for more aggressive sources of income. For example, you can set up a business. You can also choose to buy real estate so you can have assets later on in life. These riskier financial moves should be done early so that you are already able to establish your expertise once retirement occurs.
Rising costs of living make it difficult to live on passive income alone. Even with the cushions provided by benefits, you need to be proactive in getting income when you retire so you can enjoy this next phase of life.
3 Ensure that you have cash so you can adequately respond to your needs. Do not forget the importance of liquidity in preparing for your retirement. Having cash in the bank that you can easily access is vital in case of emergencies. Knowing that there is money for your immediate needs is a great way to ease your worries.
Build up your cash by having a separate account for your emergency fund in a savings account. You can get the money quickly without worrying about fluctuations in the market. You can also set up a time deposit account for money that you plan to use a few years down the line.
4 Make sure that you are debt-free. Debt is sink or swim. If you miss a payment, the interest can snowball into something that can derail your finances in the long-term. There are occasions when debt is necessary, such as a mortgage for a house or a car. But be prudent in your choices when it comes to debt.
The ideal situation in retirement is to enter it without any financial obligations. You can opt for shorter payment terms or top-off payments when you can to prioritize wiping away debt.
Being debt-free will allow you the freedom to choose the kind of lifestyle you want to live. You won't have to chase a certain amount each month because your entire income is yours to spend as you wish.
It is equally important to avoid debt when you retire. Medical emergencies or accidents can be a significant expense in the future. Although no one wants them to happen, it is a reality that the later years of life require more healthcare.
Prepare for these situations by investing in health coverage early on. Plans such as Critical Care 100 and MedLife Protect Plus provide benefits such as in-patient hospitalization costs and life insurance. Availing of these early can ensure that you get access to medical attention when needed, without draining your finances.
To find out more about how to plan the retirement you want, submit this inquiry form so we can tell you about the many products that can protect you and your loved ones' future.