What to Think About Before Retiring?
Every person wishes to have a happy life after retirement. However, what is usually happening is the opposite. Retirees suffer more financially because they were not able to prepare for their retirement. We know that you don’t want to be one of those unhappy retirees. If you want to become a happy retiree think of the following 5 advises below.
Estate Planning
Without Estate Planning the people you leave after your death will be in trouble. Assets which are under your name can’t be claimed by your relatives or by your children without paying its estate tax. We all know that estate tax is expensive. If your descendants can’t afford to pay it, the government will hold your assets which are under your name.
In order for your descendants not to grieve more after your death, you must have an Estate Planning while you are still living. This is naming in advance those people, charities, and organizations that will receive your properties after your death.
Build Your Own Pension Fund
Don’t commit the common mistakes made by the previous retirees. Their pension from the government or from their employers became their pension fund. If you place yourself in their situation, would that be enough to cover all your monthly expenses? Obviously, it’s not. Your salary when you are still working is even higher than your monthly pension.
Build your own pension fund by learning how to invest in the different investment vehicles. Such as in the stock market, mutual funds, real estate etc.
Avoid Bad Debts
While you are still on the accumulation period learn how to avoid bad debts. This is a kind of debt that doesn’t help you to increase your cash flow. If what you use to buy a car is from a borrowed money, would that be a bad debt or good debt? It’s a good debt if you use the car to make more money. But if you will only use it for transporting yourself to your work place, that’s a bad debt.
Increase Your Cash Flow
Don’t stay with a single source of income. If you’re fired by your boss without prior notice where will you get the money to cover your expenses? While having your day time job look for another source of income. Rent your properties, build your business online, invest in the real estate etc.
Get a Health Insurance
As you get older your health continues to deteriorate. Maintaining your health during your retirement age is the most expensive among all your expenses. But if you have a Health Insurance some of your expenses will be covered by the Health Insurance company.
Get a Life Insurance
If the cause of your retirement is due to a disability, yet you have a Life Insurance. You won’t be in trouble financially because the Life Insurance company will become the source of your income. When you died also and you’re covered with a Life Insurance, your beneficiaries will receive some amount of cash from the Life Insurance company.
The amount of cash that will be issued would still depend on what premium you chose from the Life Insurance company. In order for you to know what type of Life Insurance you should avail, consult a neutral Financial Adviser. These are the people who don’t represent any Life Insurance company.