Are you planning to retire soon? There’s an old saying that goes, “If you fail to prepare, prepare to fail.” Planning your retirement can be tricky, but you need to prepare yourself for the biggest retirement blunders and avoid costly pitfalls you’ll likely regret. If you are an OFW planning on coming home to the Philippines when your retirement age hits, it is wise to have a plan for your future because your retirement funds can quickly run out if you’re not careful.
Here are some points to consider when you retire and on why having an investment plan in place will help ease your retirement so you can do the things you love without worrying about money.
Thinking you still need a good source of income
Manage your retirement fund properly or else it will eventually run out. Just because you’ll be receiving a hefty retirement fund from your company and a monthly stipend from the government’s social security system doesn’t mean you’ll be fully set for the rest of your retiree years. You don’t have to be actively involved in your businesses and various investments, make sure to make your money work for you.
Considering living expenses
There is always the factor of the high cost of living especially in the big city as a retiree. Paying rent won’t stop when you reach your retirement age, so it’s best that you start early in investing and owning a home or condo in a place that is fully equipped to satisfy your lifestyle needs.
Having enough funds
Under the Republic Act 7641, a covered employee shall be entitled to a retirement pay, the bigger when you have stayed for a long time in the company you’ve worked in. One of the most common mistakes, however, is your money quickly running out because of factors such as health problems, accidents, emergencies, daily living expenses, and even for some – still providing for their children. So if you haven’t prepared enough funds, you’ll find yourself working as quickly as you retired.
According to a study by Social Enterprise Development Partnerships Inc, one out of ten overseas Filipino workers (OFW) is broke despite their relatively huge salaries because of poor or no financial planning (source: View article here). Luckily, there are many retirement guides out there to help OFWs retire financially prepared. That’s why a lot of Filipinos are wise to make their money work for them through investments and starting businesses.
Predicting health factors
It’s a given that your physical well-being will get a little more sensitive nearing and during your senior years. Don’t make the mistake of overlooking the need for health or life insurance, it’s one of the biggest retirement planning mistakes people can make. So apart from eating healthy and exercising, make sure you have life insurance to cover medical bills.
Acquiring Passive Income
One of the wisest moves you can make before you retire is starting to build your passive income. There are numerous ways for you to generate income without being actively involved, such as a business, real estate leasing, and investing in stocks.
If you want a long-term passive income, one of the best ways is to purchase or invest in real estate properties located in key areas in the country. Buy a property and lease it out to the younger generation in need of a place to stay near their office or to students who live in provinces and study in the city.
If you are not, however, savvy for sales or investment, Megaworld Prime RFO’s property specialists are here to assist and prepare you for the best property investment options you need to help you grow your retirement money and make most of your ventures into condo investment.