Are you ready to retire?

To a lot of Jamaicans, growing old is a dirty word. They fight to stay at the workplace long after they should have gracefully exited and made space for younger ones.  Why do so many feel overwhelmed when they think of retirement?

Problems with retirement

One of the biggest obstacles to retiring is the worry that you have not put aside enough money to enjoy your ‘golden years’.  Since no one wants to be a burden to anyone or even worse to be homeless, a number of persons keep working beyond the age of retirement.

Proper management of your funds while working is cruical to ensuring that these concerns are alleviated.  A number of ads online promise that they can show you how to enjoy your retirement.  Some even promise to show you how to retire ten years early!

Is there any truth in these promises? Is it possible for someone of reasonable means, given a reasonable amount of time, to invest wisely and retire ten years early?

Well its feasible but it would take some extra careful planning and a lot is determined by how soon you started saving. your existing income and lifestyle.

Suggestions

The best laid plans to save are often sabotaged by unforseen events such as ill health.  As a result, the first saving area that is affected are the long term instruments that should ideally be left for their investment value in your later years.

It is better however to determine how you will put aside a steady accumulation of your earnings despite the challenges that might arise.

Another step on the journey to retirement is to pay off your debts. That way you won’t have such a high overhead that you will struggle to repay. Try as much as possible to pay off credit card balances in the same month. Even when it might have made economic sense to carry a loan, by paying it off, you will be gaining the security of living debt-free.

It is important to have as your priorites food and other basic needs, so expensive houses and vehicles should not be your focus.  Never try to keep up with the neighbours and end of with huge debts you struggle to pay. Instead pad your retirement fund so that when they are still paying off their house, you are living rent and mortagage free.

Follow a simple formula for building wealth: live on less than you make, and invest the balance wisely!

What’s your take? Let me hear from you!

Teri Ann Paisley

Gleaner online writer

Tags: retirement