Thursday, July 3, 2014

Stress Free Retirement, I Want!

Last week I got a chance to talk to one of our colleagues at work. On our way to our meeting at our head office, we talked about having extra income aside from our current full time work. He told me that Daddy Allan already told him that we are into online shop business and I said yes but it's not yet in full bloom.

He then said why not can we exert full effort on the business because not all are blessed with this opportunity. I got his point but I still have my full time work and as mush as possible I don't want to mix business with work. But I will admit that sometimes I am guilty of using my idle time at work doing some business. 

Also, I feel that in order to fully operate my own business I must give up my work. I believe I cannot serve two Gods at the same time. I need to choose, and besides we still have less than 4 years to pay for our house amortization.

Maybe he don't get my point. I just want an assurance that we can pay our house for the next 3 years, then after that I can decide whether to quit my work or still work until our ideal retirement age of 40. Yes, I want to retire at 40 and focus on our business. But still thinking of immediately resigning after we pay the house or when we have enough emergency funds. 

Speaking of retirement, most of the people I know retire from work at age of 60-65 years old. If you are working in a government, you are luckier than most people working in a private company. Just like my mother who retired from a university almost two years ago. She got her retirement benefits that includes leave pay, PAG-IBIG, GSIS, etc.

But money disappear so fast especially if you don't take good care of it well. In my mother's case, most of her retirement benefits went to debts but she's still lucky because she's staying with us and everything is free. Also, she still has ample money she can use in case of emergency. How about those senior retiree who still need to spend on their own and has house to keep, or family to feed?

I want a stress free retirement... You too right? So let me list down some tips on how we can retire peacefully, not underground okay? Haha. But let me clear this first, I am no expert and these are just my own ideas based on my observations =)

First, do not rely on the retirement benefits when you retire. Start saving for your retirement as early as now. 
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Try to live within your means, if you can't be too frugal. Most of the retirees I know act like they win a lottery. They go on vacations, buy this, buy that. Spend gift for their children and grandchildren. Until, they realize their retirement benefits and savings are almost gone. I am not saying to be too stiff with your money, but just learn to know what you don't need and when to give in with loved ones requests. I am not also saying, don't travel because if you can really afford then go on, but not too much. I know for sure you want to enjoy your life after so much work and stress.

Don't allow anyone to manage your money unless... Unless you really couldn't manage your financial, at least find someone or a loved one who can do it for you with all honesty. Like in case of my mother who is sick. Since there have been issues with my siblings regarding her money, I bravely stand for her and keep her money securely. It was not easy for me because I have to deal with my siblings judgement. But if I didn't do that, she may not have even a cent right now.

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Invest in business. This has been our goal to have a business before or after we retire. Right now we have this online shop that's blooming slowly. For now, I don't need to rush and the extra income we got from it is helping us a lot with our expenses. It's just too tiring to manage work and business at the same time. But in time, I can focus on our business and this will be our bread and butter in the future.

Now, if you already own a house upon retiring you can apply for reverse mortgage. Reverse mortgage is like a home loan but instead of you paying, they will provide payment based on home equity. The payment they will give can help you out with your expenses. This is already available in some country and I wish it will be available here too.

But don't stress too much about planning your retirement perfectly, okay? I believe that God has always a better plan. Just enjoy life and your freedom after years of becoming a slave.

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