It is the new year 2017 and the decisions you make now will determine if you will retire happy. With regards to long-term savings, saving more money for retirement should be a top resolution if you are government worker, a private company employee or a business owner.
11 Financial Decisions to Make in 2017 to Retire Happy
It is the new year 2017 and the decisions you make now will determine if you will retire happy.
With regards to long-term savings, saving more money for retirement should be a top resolution if you are government worker, a private company employee or a business owner.
The DemandSupplier team have listed 12 realistic moves you can make to improve your chances of a happy retirement.
Increase your Retirement Savings
Apart from your RSA, add an extra 5-10 percent of your pre-tax income to a personal retirement savings. Use a standing order on your account to make this happen easily. You will be thanking yourself in another 5-10 years because you will know you will retire happy.
Maximize Catch-up contributions
If you are an older worker, you can make up for lost time or increase your chances to retire happy by adding extra contributions to your personal retirement account. At age 50, you can add an extra 15-20 percent rather than 5-10 percent on autopilot as well.
Minimize your debts
Reduce your debt now so that you’ll find it easier to save money for retirement and to live comfortably. While there are many ways to approach debt repayment, we recommend starting with paying off your bests with the highest interest rate first. Once you block the biggest outlet leaking your money, you can focus more on saving.
Diversify your retirement income
Have streams of income from multiple sources in retirement. A good strategy is to have a mix of investments with different taxes on them. This implies having some money invested in real estate, in stocks, in a retirement savings account (RSA).
Stop stressing about the stock market
The Nigerian Stock market has been going up and down. However, it does not matter as long as you invest in blue chip stock and invest based on a naira cost averaging model.
This basically means you keep buying regularly regardless of the market performance or indices. The market always outperforms our expectations on the lone-term and the fact that you are buying shares in blue chip companies means you won’t lose your all your share value unlike with penny stocks.
It is always the right time to get into the market especially if you have a long-term investment plan and by that we mean at least 10 years.
Instead of worrying about the right timing, invest as soon as possible to maximize stock market gains by the time you retire.
Set Up an Emergency Fund
Another way to get rid of stock market worries is to build an emergency fund.
An emergency fund helps you to avoid dipping into your retirement funds. If the stock market nose dives as you retire, you will be able to get out of the downturn by using your emergency fund.
Cut down your Cost of Living
There are drastic and simple ways to do this depending on your current financial condition from stopping to eat out to moving to a smaller house in a cheaper neighbourhood, cutting down your cost of living will free up funds for retirement. Lifestyle changes can be overwhelming, but it doesn’t have to be permanent “forever”.
Protect Yourself with Insurance
Insurance can save your life and business in Nigeria. Find out how you can use insurance to protect your most precious assets – assets that if you lose, will ruin your life – your home, your health etc
Have a Health Insurance
Health insurance is very important as you grow older but the secret is to have one at a young age so that the premium is much lower. Even if you company has a health insurance cover in charge, find out the limit and decide if you will need to increase the benefits.
Invest in yourself
This is the most important investment you can ever make. Initially, it may not seem like money move but you can never go wrong taking time to improve your skills, expand education and network. These all pay huge dividends including getting a better job and income and more money for retirement.
Befriend Lawyers, Bankers, Financial and Real Estate Experts
You will need to identify exactly how to make 2017 a great year in your retirement savings plan. Hire a financial professional to help fine tune your retirement plan. This is a smart move to help you meet your retirement saving goals for 2017. You also need the right kind of guidance from lawyers, bankers and real estate experts. Small tips from these guys may lead to large financial gains for you. We hope to retire happy.