For this post, I am going to share my thought on retirement guidelines.
Retirement guidelines
I believe we all roughly know the do’s and don’ts when preparing for our retirement. It is just that along the way, we still need someone to remind us.
It’s the same with me. There are times when I am really into retirement planning.
There are also
This prompted me to share my current thought on retirement guidelines as below.
1. Start early
Plan early and take advantage of ‘The power of compounding interest‘.
Because, the earlier you start your retirement savings, the longer time duration you will have. Hence, the bigger your retirement fund will grow.
2. Diversify your retirement portfolio
Do not rely on EPF savings alone for your retirement planning.
Instead, do additional retirement saving such as Private Retirement Scheme (PRS).
Or, have an
3. Impact of inflation
Take into consideration the effect of inflation on your retirement planning.
If you think you need RM3,000 a month and to retire in 10 years, then you might actually need RM5,000 a month to retire. This is by taking into consideration 6% inflation yearly.
4. Sufficient medical coverage
Have good medical coverage and purchase the policy as early as possible. Because, as we age the need for medical care increases.
Good medical coverage will greatly lessen the financial burden.
5. Take measured risk
Learn to take the
One of the ways is to ensure a portion of your nest egg is under high income-generating portfolios.
Of course, you only take this risk after further understand its impact.
Final thoughts
No matter at what junction of our life, let’s take some time and plan for our retirement.
With that, I hope my sharing above on retirement guidelines bring benefits to you too.
Feel free to drop your comments below.
photo credit: Retirement via photopin (license)