How to Plan for Retirement : My thoughts

Let’s face it:  We would all love to retire someday.  Our parents and grandparents had those same thoughts.  For some, they planned well, and for others, not so well.

How to Plan for Retirement, planning for retirementIf you  have not retired yet, but would like to some day, then you’re in luck because I’m about to share with you few things I think  you must consider as you plan for retirement.

After being the breadwinner for the family for a few decades, retirement means the beginning of a new phase of life. When you hit this point, you can no longer work to bring in continuous cash that will allow you meet your desires a comfortable life, spending these good old days in the coziness of the room, and occasionally going on vacations.

However, in order to enjoy the retired life in a fine way, you have to make proper plans and a smart investment strategy before retirement. A proper investment plan will ensure that you have a tension free retired life and no financial problems to worry about.

Many people in developing countries do not think about retirement until they’re about to retire. This can not be you. So here are some things you need to start putting in place NOW!

1. Increase your income

One of the most effective investment strategies for retirement is the positioning yourself to make more money. As soon as you cross the age of 55, you may want to reduce your work hours while keeping the pay at the same level. A way I know to do this is by becoming more valuable at your work and then negotiate your salary.

The best way I know to do it is to start your own business. You can start a traditional business that is local, like a furniture shop, a grocery store etc.  The method is more cash intensive and requires more upfront money that you may not have found.  The option I know works best in 2014,  is to start an online business

2. Protecting the savings

If you are able to protect your savings and the level steadily, your life can be tension free even after your retirement. In fact, it is the amount in the savings account that is going to give you the most dividends when you are not working anymore. So always try to increase your level of savings in order to get the dividends during your retired life.

3. Relocating

Relocating to a comparatively cheaper location can prove to be an effective investment plan.How to Plan for Retirement This is especially effective if you stay at an affluent neighborhood. You can sell your luxurious house at a considerable amount, and can move to a cheaper and less lavish apartment, thus gaining thousands of dollars just when you need them most.  Consider living overseas. It is a whole lot cheaper.  International Living Magazine is a great source on retiring overseas.

4. Relying on social security

You are eligible for social security dividends as soon as you reach sixty two, but if you are able to stay away from withdrawing your social security balance for three to four more years, your dividends would increase exponentially, and you can earn a lot of money during your retirement days.

5. Annuity

Annuity can offer you a good income when you retire. However, the annuity depends on the existing rates and so your income can vary. Still it is one of the most effective income plans for your retirement days.

What are you doing when it comes to planning for retirement? I’d like to hear about retirement planing from different parts of the world

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