10 years back if you are going to ask me about retirement, I would simply say that is I am still young to think about it and I would let my future me worry about it. I was in my mid 20s back then and I was single. Back then I wouldn’t have imagine that I’ll get married and have a kid. But today I am married and have a beautiful seven year old daughter. Life is so different now in the sense that I am responsible for someone else’s future.
I am currently in a part of my life where the decision that I make toady will not only affect me but it will affect my child’s future and her child’s future and so forth.
What I mean is look at your current situation. Are you well off? Whatever situation that you are in, it is because of the decisions that you parents made when they were young.
So have you prepare for your retirement? Honestly I haven’t and I regret the time that wasted not preparing for it.
Now I am thinking about my child’s college fees. Will I have enough money to support myself and my family? Would I be part of the statistics relying on my child when I retire?
This is what I should done when I was younger.
I just got myself an insurance last year. I should have started younger so that it had a longer time to mature. The younger you start with insurance, the bigger the return of investment.
Also if something happens to me, there is some money for my family. The good thing with insurance nowadays is that there is an investment element for most providers. When I was younger, insurance would only pay out if the insured passed away or becomes disable. Now you could get a lump sum amount when you reach a certain age.
With the way government pensions are going today, I am not sure it would be enough to support the living expenses when I retire.
The maximum pension that a person would get from Social Security Service today is ten thousand pesos per month. Our living expenses today is thrice as much. That would not be enough today. That is why you shouldn’t rely on your SSS pension when you retire.
Try Sunlife, Prulife or other insurance provider for a better pension package.
After 17 years of working, I just got my own house. People would disagree that a house is not necessarily an investment. With the expenses that a house would incur, I guess they might be right to say that it is not. However I have been renting for more than 15 years and the money that I paid for rent should have gone to my mortgage payment. I just didn’t want to grow old renting a place. When I am not able to work I would not want to have to worry about paying the rent.
The investment that I should gotten into when I was younger was stocks and bonds. Again the return of investment is higher when you invest long term.
Start a business
The good thing about being an employee is that you have a stable income. But that is also the problem. You income will be stable which means there is a cap on what you will earn. Nobody becomes rich being an employee alone. People who are rich have their own business. Okay let’s say you don’t really want to be rich but you would definitely need more money on top of your stable income to be able to save and prepare for retirement. Having a side hussle is a good idea.
When we were given the keys to our new place last week I was happy because my child wouldn’t have to worry about her house when she grows old. But then again it got me thinking what else I would leave behind. Every parent wants the best for their child. I think every parent would want better life for them. A better life compared to the life that their parents had.
My parents are beyond retirement age but are both still working. I guess they don’t want to burden their children with the expenses that is why they are still working
I would support them if I could but since I am just starting a family, I don’t have the means at this point. I am hoping that one day I wouldn’t have to work when I get pass the retirement age. I pray that I would be a able to set aside a retirement fund. Although I should have started saving and investing earlier, there is nothing that I can do with lost time. Although I am late with setting aside for retirement fund it is still a start. I have around 20 years to build it up and that time would be enough.
What are your thoughts?
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