Why Retirement Planning is Important ?
When we are talking about retirement, a lot of people especially young men will think that this issue doesn’t so important, or even never been in their mind, since we have to talk something far in the future. In nature, people like to live and think for today, instead of thinking about something unclear, moreover if the issue is 25 years ahead from now.
But, on the other hand, all financial advisor always ask us to think and make some personal finances planning for our retirement age. Why this topic is crucial as one of our financial mission ?
For us who still enjoy your 20th years period of our life, we may think that retirement planning is something that can wait. So many thing to do and to think such as social life, romance, entertainment, and other ways of enjoy the life. Then, there’s a time when we get old and start to think about our retirement. At that time, may be the planning is too late and we have to work very hard to achieve our goal.
So, how important is retirement planning for all of us actually?
Let’s find the broad and simple answer. Assume that we started our career at our 25 years of age, then how many years time we have before retired? Up to 55 years old, there will be 30 years. Yes, we have 30 years to prepare. After that, if we can live up to 75 years old, how much time we have to spend without any significant income but just continuous monthly expenditure ? 20 years.
It means, we have 30 years to secure our next 20 years life (2/3 of productive life period). To be emphasized here, 20 years is not a short time, and at that time we will need something to spend for our daily life.
So, begin our retirement planning on 40 years of age is little bit too late unless at that time we have quite huge income to allocate. But, who can grant that our 40 years age will become our financial golden age ?
If we now 25 years old, and have 30 years to prepare our another 20 years life, I think such 20 years is quite important and fair to be included in our life planning. Otherwise, we will burden our children or family when we get retired without sufficient amount of money to spend.
So, just keep invest our money when we are young. If we are still under 20 – 30 years period of our life, we can learn all investment instrument and don’t be scared to take some investment risk. When we are under 40 – 50 years period, please calm down and save conservatively. Just bear in mind, that we will have long 20 years road to walk when our body is too weak to work, our brain is too tired to think, and the most appropriate thing to do just to enjoy our life.
Personal finances is sacrifice something in our current life for our better future life. Just make it as a natural process, enjoy our today’s life but also make a plan for our future life, so we will be able to enjoy our whole lifetime. That’s a dream of every human being, isn’t it ?
So, once again, retirement planning is important just because we all want our whole life become enjoyable and valuable for us.
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I think sometimes investment in financial instruments is over rated in advising young people about retirement. For most of my youth, I made my time and financial investments in my career. And this lead to a nice pension and an early retirement.
Financial investments were primarily in real estate for the tax deductions and appreciation in property.
Now in my retirement, I’ve moved abroad and actually have more discretionary income than when I was fully employed. And that includes paying off my current debts. Contrary to most advice, I retired with a chunk of debt after determining that I could more easily pay it off in retirement by living overseas.
I’d advise young people to think today about retirement in a global sense. It increases your options whether you are thinking about your standard of living, security or healthcare needs.
@ grayspirit
You’ve given very valuable advice and good example of yourself here. I think a lot of thing shall be learned from you, and all young people can explore themselves using your way of personal finances planning.
Yes, we are as younger people need some more attractive approaches about retirement, instead of thinking about 60’s period of age. Thank you for the good approach you’ve pointed out.
Hey, good to see that you joined dofollow move on your blog but your blog is not actually dofollow. Probably your dofollow plugins is not working or you might not aware of this move. Hope you can add dofollow plugin back again or remove the “U Comment I Follow” badge.
Thanks for this information.
I’ve tried several plugins before, and found out previous plugins didn’t work but the last seems works.
Let me check again, and plz help me with feed back after my checking. If then I cannot make my blog become dofollow, of course I’ll remove the badge.
@Atniz,
I just viewed my page source, seems nothing’s wrong, there’s meta tag “index,dofollow”. I just little bit confused if this blog is nofollow to others.
Let advice and help me friend…
Right click on the commentators name (that uses URL) like mine or grayspirit, and select “properties”. You will see “external nofollow” on the link attributes. You can also view this post ’s source code (Ctrl+U) and find for the commentators name that uses URL (like mine or grayspirit), you will notice that there are rel=”external nofollow” tag added near the URL. It shows your blogs is not dofollow. What dofollow plugin are you using? I’m guessing that this is a wordpress blog. If yes, probably, you can try http://wordpress.org/extend/plugins/sem-dofollow/
I checked already, external nofollow didn’t appear when I click properties, but rel=”external nofollow” is appeared with Ctrl-U method. Seems something wrong with the plugin or my template.
Thanks friend, I will try to fix it. Temporarily, I will turn “dofollow” badge down from my sidebar until the problem is fixed.
At different stage of life, yes, we do need to adjust accordingly the risk level involved in order for us to retire comfortably. We don’t want to end up as a poor man, giving all the money back to stock market when we are hitting 50’s or 60’s. Who is going to feed us then? Our children?