so this blog will remind me of the need and hopefully help me to be discipline enough to reach my goals.
While packing my stuffs, i realised i have a newspaper cut out from the sunday times many many months ago.it says...
I don know if my peers are planning for retirement already or are spending their hard earned money like there is no tomorrow because simply we do not discuss them..
In our culture, it is just taboo to talk about money-questions concerning your salary, credit card bills and investments amount are just to sensitive and plain rude if u ask me.
Oh well, i digress again..
So something new today - "How to plan for your retirement"
1) It says Singaporeans are lagging in retirement planning compared to their American couterparts.
2) We normally start at the age of 34 (I am 8 years earlier!) Americans- 30 years old while fillipinos at the age of 28
3) Mistakes people make when planning for retirement.
So, I shall not make the same mistakes as the rest.
Mistake Number 1: Not defining our goals
My goals are
1) Why?
I want to be finanically independent!
I don't want to rely on a monthly paycheck!
I want to be able to leave my job whenever my principles are
compromised and most importantly, i do not want to work under
incapable and stupid people.
To do so, i must have a stream of passive income.
2) When?
I want to be financially independent by the age of 55
(Approximately 30 years)
3) What?
Learning about cash managment,expenses magnagment
& investments.
Mistake Number 2: Not understanding how to manage expenses
I need to learn to manage my expenses..My credit card bills should not take up half of my salary. So starting from today, I will account each and every dollar i spent, put my bimbo HTC phone to use.
Mistake Number 3: Not investing for the long term
We should not follow the crowd because by the time the news gets to us, it will be way too late already.
(Doesnt really concern me because I am the other extreme- i buy and never sell! I only make paper gain)
Mistake Number 4: Not factoring in accurate assumptions
Assumptions to be made when planning for our retirement
1) Cost of living (Normally higher than expected)
2) Number of years we lived
3) Inflation rate
Let's see-(actually i have no idea how much would i need to retire comfortably and i always get irritated by financial advisers asking me how much do you think you will need to retire! I am not a prophet if i know exactly how much i need, i would be able to plan rite?!)
I tried googling and came to this
I tried and I need $2 Million to retire with a monthly income of $3000!
*HORROR*
Mistake Number 5: Not managing your risks
To save up for a rainy day, you will need approximately 3 to 6 mths of your salary to tide over.
(I got that roughly done)
Mistake Number 6: Not reviewing your financial plan periodically
Need to do that yearly and make the necessary adjustments
Mistake Number 7: Not identifying the right financial adviser
I think mine is lously, haven called me for the longest time already, oh well!I will take matters in my own hands, who would care more about my money than myself? don't you think so?
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