10 Things You Need to Do Before Retiring
Planning to do something is a matter that requires a system of regulations and procedures. Each step before reaching the goal that we set Must have obstacles On the way, plans must be adjusted. And add new strategies Like Own financial planning That we cannot predict what our financial future will be You may have lost your job. Or have the burden of debt arising from not having a good financial plan, therefore financial planning is important For the future of yourself and your family
10 things you need to do before retiring to be a guarantee for you and your financial security. Which will be divided into 2 series. The following content is information shared by close friends who work in the big bank in Silom area that facilitates information. Therefore would like to thank you for this opportunity to save before retirement
1. Start planning income and expenses.
Before beginning to plan their own finances The first thing to do is to create an income and expense account for yourself and the loved ones in the family. The preparation of income and expenditure for reasons that will know the source of income. And the destination of expenditures that go When we know it will help us to manage our finances more easily, when, when and where to pay. In addition to expenses, items related to loans or credits are also included. However, things that cannot be forgotten are expenditures that are not before income, such as luxury goods, school fees, insurance premiums, credit card fees
2. Deduction income as reserves in an emergency
Do not overlook what may happen that you do not immediately set up or make a backup plan, such as illness or unemployment. The income you receive each month should be partially funded every month. The formula is just to multiply the salary that you receive to multiply the expenses that may occur in times of crisis. Should have to reserve for at least 6 months to be safe, but it's important not to withdraw or withdraw money from this section if absolutely not necessary.
3. Getting insurance for yourself and your family
Another big principle of planning for a stable future is protecting yourself from accidents. Or unforeseen events that may occur at any time is to insure insurance to ease the burden that may occur. And including helping spread the risk such as health insurance Accident insurance Mortgage insurance Car insurance If something happens to us or those around you, at least the insurance that we have made will then ease the burden of expenses or compensation to the person receiving the compensation. Therefore, insurance is considered the heart of good planning. Therefore, to buy insurance must buy insurance from people who are rusty and buy from a reputable company.
4. Start planning and reviewing investments.
From the above 3 points, after following all 3 steps, it is up to the investment plan consideration process. Due to our initial plans to invest with a large sum of money Must prepare a plan and follow the steps The best way to plan is to test the risks that you can take before. So that we know what level of risk we can take In the risk test Can be tested at various financial institutions It will be a test with 10 questions. When the results come out, it will help you determine the investment guidelines and the proportion of investments in other assets.
5. Manage investments in various fields by oneself or through professional advisors.
Aside from investments related to collateral Investment in stocks, debt instruments or mutual funds It is considered a risk. If you have the knowledge, understanding and confidence that you can manage your capital to grow. Was able to do it by yourself But if you have funds but don't have understanding or lack of knowledge Should rely on investment advisory services from financial institutions To plan investments and arrange investment portfolios for you As any type of investment has risks in itself. Lack of understanding or expertise may result in lost or useless investments.
From the above 5 things that are considered very important. Especially in the management of investment plans and the creation of various guarantees that will help create peace of mind in times of emergency. Savings or investments do not mean that we have to invest large amounts of money. It means the average money from cumulative income in the form of investing and buying collateral for oneself. Is gradually investing Until a certain amount of time, the money invested or stored will become larger. For Series 2, it will be discussed in the other 5 things you must do before retiring.
Financial planning using investment methods to create security for yourself and loved ones in the family. While also investing in various forms, even without seeing results within a short time But in the long run, it will be an indication that saving today and managing financially wisely will help you to relax comfortably.
As for the second series, there will be another 5 points that should be done before retirement. The following will be considered important as well as the 5 items mentioned in the first series. No one item is not important. But it will be very important depending on which one you can do well. If you can do all 10 of them, it's good.
6. Buy cheap, not always expensive.
Many people invest and hope for high returns. Without evaluating factors from all aspects, such as investing in shares That investors in stocks want to buy stocks at a low price but expect to sell at a high price but do not analyze or lack understanding of the direction of the economy at that time That the investment direction in stocks should be the most It can be seen that many people tend to choose stocks that offer high returns but also have a high risk. Especially stock spin Someone once said that Stock investors want to win the market But in reality, the market is often the winner of the investor.
In addition to investing in stocks that are subject to risks and investors must have a market understanding and expertise, they must also have experience. Dare to take risks and be able to take risks as well But if you are someone who does not want to bear the risk Able to choose to invest in the form of mutual funds Which provides better returns than saving deposits and can also be used for tax deductions Although investing in mutual funds is not as effective as investing in stocks But the risk is considered low Which the author has already written about mutual funds Can read more >> here
7. Prepare money when retiring
A common misconception of working people is to think that they are still young and have no financial plans when they retire. But in the future, it will start to collect money at the age of 50 years, which may be too late. Should start planning from today You must always know that when you retire You will not have an income like during the time you have a job. Saving money for retirement is therefore very important. If in doubt, go back and read from step 1 again.
8. Check the accounts of available assets
It is very important to check your assets such as house accounts, land, collectibles, cars, diamonds, liabilities, insurance policies and more. Because many people tend to forget what assets they have And the most forgotten are their own account numbers And where each account is cleared Because if there are unexpected events Will let you know where you have assets and money to be collected Allowing you to take notes and store them in a place that is easy to pick up and is convenient for those close in the family to have access to.
9. Write wills
May be said in advance too But as always mentioned in this article about the future, we cannot predict what will happen. Or one day there may be a sad event Preparing to write a will is a way to deal with unexpected situations. Including transferring security to the person behind you
10. Forward to others
Aside from saving money for yourself and your family It is a good thing to pass on love to underprivileged people in the form of money. There are still many people who lack opportunities. Just a small amount of money will help to add to their dreams and opportunities. The author is one who believes in God. And God desires to give good things to everyone he loves That is every human being.
Conclusion of the 10 best points, it cannot be denied that It is best to start planning from today. Financial planning Explore your income, expenses, and invest some of your money on things that can create rewards and guarantees for you in the future. Like alternating tomorrow Because tomorrow may not arrive for you The author wants to end with the saying
"Don't hope to get rich today if you haven't started yesterday."
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