Tuesday, November 1, 2011

Time To Retire; Do You Think You're Ready For It?

One question which pop in everybody's mind is Am I ready to retire? Don't take retirement lightly; make decision to see whether everything is in order. Prepare yourself to be mentally and physically strong for a new change in your life. It's just like a new phase in your life and time to relax from your hectic work you have been doing for years. Plan your retirement ahead so that so that you can have a good time ahead. Most of the people focus more on finance and don't concentrate on time to relax or spend time with family. So, plan it in such a way that you enjoy an equal balance in both sides. Here are few things to keep in mind for those who are nearing to retire, let's have a look at them.

Financially are you ready, is it enough?

Consider your retirement with the state of the recent economy. Plan your financial status so as to have enough money to last for few more years. But if you're ignoring the situation then it isn't going to help you in any way. The most important is to analyze about your financial status. Don't think that you have enough money left after retirement. You never know where it vanished in a year's time. You might even consider working for some more time after retirement. But have you thought that like you there might be many people searching for a job. Instead of wasting your time on searching and being too optimistic that you have enough money, start planning to save your money which you have earned all these years. Then it's high time you invest your money.

Investing money after retirement

After your retirement, you get some money. It can be from your provident f und (PF), superannuation, public provident fund (PPF), life insurance policies, fixed deposits, or any combination of these. The question is that how and where to invest all these money? To begin with estimate your retirement. Make an account on how much have you saved? What are the expenses that are going to do? How can I generate more money from my saving? There are many schemes to save money such as the Senior Citizens Savings Scheme this is one of the safest schemes to go for. As it's a government owned there will be regular interest payments in a quarterly basis. Also offers a reasonable interest rate and the best part is you can invest more. Another option to invest is in fixed deposit. FDs provide stable returns. The advantage is that the money can be broken or withdrawn in any emergency situation. There is also another way to invest and it's in Post Office Deposit. It is similar to FD, but kept in the post office. And it is also owned by the government. Utilize all these benefits for a relaxed retirement life. Also one can invest in gold or real estate as these will always give you more money in the future.

Things to clear before retirement

Retiring in comfort, a debt free life isn't it sounding nice to hear. Try to imply this in your life too. Retire not only from your work but also from all the financial tensions. When it's time to retire one by one clear your debt. It includes credit cards, the loans and your insurance. By the time you retire clear as much as you can so, that you can live your life peacefully. Preserve your property so as to not live in fear. Otherwise you end up still working to pay back the debts. Don't waste your retirement time worrying about money. Be ready for a peaceful retirement life. Don't think Retirement is the end but feel that it's the beginning of your life.

How to optimize your expenses

You know you're about to retire so it's better that you plan and make an acco unt of your expenses. Choose an enjoyable lifestyle with little expense. Keep your health fit to save money from any medical expense. Live in a peacefully low income place, and spend on things which you think is really worth. Modify your expenses to support your living. Try to reduce expenses as much as you can, just to increase your saving. Move out of the house if the rents are high; instead opt for a small house.