So this is a slightly long article... but I felt I should write down my thoughts for my friends and family....
1. Longevity: People are living longer than ever before... (not healthier but longer)... very important to think how long will your income last after you retire. Setting up a minimum income guaranteed every month should be the first criteria for your retirement plan.
2. Healthcare Costs: We know we are going to live longer... cost of healthcare is also increasing... how are we going to manage this risk? Health Insurance? Health Care Fund on the side? Critical Illness Insurance for experimental medication? Long Term Care Insurance for nursing homes? Cost of Changing a house in case of disability? WOW... overwhelming isn't it? Even as I type this... I can feel this is something everyone should always have on their radar of planning.
3. Government Support: Never underestimate the power of this support... sometimes its the only thing that might help... but also don't overestimate this support as government policies change and you don't want to be left without any coverage. So plan as if you have to fend for yourself alone... this is an additional support level.
4. Inflation: Yes every financial planner talk about it... how real is it.... very real .... how can it affect your future income...BIG TIME... do not loose sight of this rate... it can creep up real fast and eat into your income pie... make sure your minimum income guaranteed every month is inflation protected... or 20 yrs into your retirement (when you are even more old) you might be struggling to make ends meet... so Watch it very carefully.
5. Investment Risk: Yes we all talk about risk too... Low risk... Low returns... High risk ... high returns... so what happens if we start taking risk with our pension money... well either we have a lot more than we need...or we are gonna be facing a huge challenge to catch up... watch it very carefully as well... take risks early..and reduce it as you grow older..when you cant afford to loose...
6. Legacy: An over rated and over used word... but its something we all can relate to... how do we want to be remembered? the person who was an asset or a liability on the family?? what did you do for the next generation(s) to remember you? Some of us want to be remembered for our deeds... and some of us really don't care... so painting everyone with the same brush is probably unfair.. however... as we grow older... we do want to be recognized and not totally forgotten by society... and especially our grand kids.. so think about it...
If you liked this article... please share this with your friends... I have written a lot more in my book "28000 - Make Everyday Count" which is now available in 3 languages - English, Hungarian & Bahasa Indonesia
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