Financial Preparation for Retirement


What comes to mind when you hear the word retirement? Whether you're preparing a financial retirement? Probably most people will do associate retirement with old age, no longer battled to earn living, living humbly, face the risk of senile, post Power Shot syndrome, and others.

You're lucky if included among that already have adequate retirement preparation, for example in the form of retirement provision is already sufficient. However, not least among which are entering retirement with the preparation of a potluck. Pension office of the mediocre, the necessities of life are on the rise. When you include among these, it's time to think to return productive financially.

Because of the formal sector already does not provide a place for the retirement age to continue working, the only way is to work in the non-formal sector. There are many options that you can learn to keep it financially productive though have entered the category of retirement age, among other things, start a business or use the assets you have to be able to continue to provide a regular income. For example, take advantage of the home is not livable as the contracts or invest some savings days old in fixed income instruments or fixed income, such as deposits and retail.

Another option is to become a professional appropriate expertise you have. For example, you are working in the field of taxation. When retired, you could explore a career as a tax consultant. Some professions may also not know retirement, such as doctors, architects, and others.

You can also optimize your relationship or work network and pioneered the profession as a broker or middleman. "Take advantage of the experience of working with teaching, giving seminars, or becoming a consultant. Whatever the activities of retirement you'll choose, you should have already made preparations or articles for at least a year or two before retirement arrived.

Financial Preparation for Retirement

When you choose a business

If you tend to be more comfortable starting businesses as pension activities to keep earning, it's time to move. Some criteria that could venture were founded by retirees.

- First, businesses with relatively low risk and stable income.
- Second, the business is easy to run and not asking for a high stamina.
- Third, the business's value continued to rise though silenced.
- Fourth, the businesses that suits your interests and expertise.

Business in accordance with several criteria, among other business in the real sectors, such as agriculture, forestry, animal husbandry, tourism, services, and business properties. Another option is to buy a franchise. "By running a franchise business, we've cut the time of study because the system is already prepared the franchisor.

Here are some things you need to do when you want to be an entrepreneur in retirement:

Secure money
Businesses still have risks. Then, when they wish to make pioneering efforts in the condition have retired. As limited-income retirees demanding you to more carefully arrange the money. "Secure funds for daily needs in instruments with a stable return such deposit or annuity.

For daily needs in the future, you should not rely on the results from the new business started. Emergency Fund also keep you need to prepare in anticipation. For business needs, use another budget outside the budget for daily needs.

Prepare a capital
So that the money stays safe in retirement, pioneering efforts better wear their own capital funds not alias debt. Nor a capital fund invested all you have for one business only. Back up a portion of the funds in anticipation of when your first business experiment failed. The trend of failed business startup is quite large.

Business concept
Start a business could not quickly successful. In order to be more mature, prepare the business plan are clear. Need not be too complicated, just the clear line of business, markets or consumers are targeted, the conditions of competition in the field of business, the marketing plan, and what is the uniqueness of the business (unique selling point). Don't forget, the simulation effort contains an analysis of turnover, cash flow projections, and so on.

When should owe
Then, what if the capital for business is not enough? Can glance at bank credit or debt? The financial planners compact do not recommend it. If business still new and has yet to give a stable income, yet it's time we take credit with regular repayments.

A retiree's income is generally much smaller than the still-productive. It would be too risky If start a business at the time of his retirement with a capital debt. "If they take credit when retirement, its use is for the expansion of existing businesses. Not for the pioneering effort.

If indeed your personal funds are inadequate as a business capital, there are still other avenues. You can employ an investor. Invite the cooperation of a friend or relative as a business associate so that venture capital is not 100% come from debt.

When did have to owe to the new venture capital, you should pay attention to the following things in order for the debt not so doom in your retirement.

First, the ability to pay the mortgage debt, "What is the pension you receive enough to pay off the loans and shore up life?
Second, the use of debt funds, some banks offer a credit for current retirees. The requirement is easy. Decision letter retires so guarantee mortgage payments because the debt is cut directly from the debtor's retirement money.

If you do not have a strong commitment and the count is clear about the use of the funds, it is better not to run to credit bid. The risk is too great.

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