By Francisco J. Colayco
Aside from changes in work attitude, there are three other concerns where attitudes may need to be changed. these are in retirement, credit card and providing children with inheritance. Today, we tackle retirement.
Many aspire to retire earlier than the law allows. At age 50, any retirement package received is already tax-free. however, for many companies, compulsory retirement is either age 60-65. I think most start getting “burned-out” by their late 40s. They think of retiring in their 50s but, maybe that is too early to retire. maybe, they just need a long vacation and then, get into active work again. or perhaps, change into a less stressful undertaking.
You need to prepare for your retirement from the time you start working. Of course, new graduates in their first job can never imagine they will grow old but we seniors know that it comes sooner than we ever thought it would. most of the time, it is already too late to do anything about it.
If you are in the prime of your life, 20-40 years old, you are busy earning a living, proving that you are good, and making your employer rich. There is nothing bad about all these goals. but include your personal retirement package. Retirement packages from employers are generally not enough to fully support all your needs indefinitely upon retirement. And, there can be reversals in business and it is possible that by the time you retire, the company can no longer afford your package.the same holds true for our government retirement pay through Social Security system or Government Service Insurance system. We have read/heard time and again in the news that the funds of the SSS and GSIS may not be properly invested to cover requirements at the time of retirement of the members. In fact, in other countries, the government retirement age when benefits can be distributed has been increased by 5 years.
It is better not to retire early, if you have the choice. Do your computation of benefits, if any. when the retirement of 65 years old was established, most people died in their 60s and 70s. Today, many live to 80s and 90s and are still strong.
Some are lucky to receive retirement pay and still be young enough to take on active work. let me warn you that the worse thing you can do is to invest your retirement pay in a new business where the success rate is very low. when you are young and make a mistake, you have time to recover. At retirement, just invest in very low risk options. unfortunately, low risk means low returns. this is why your retirement package plus your own lifetime savings should be big enough to maintain your lifestyle even if you only receive low returns.
We discuss these issues in our seminars/workshops where we teach you to invest. choose one to join and you will be surprised on how much you will learn. Call us at 6373731 or 6373741 or visit www.colaycofoundation.com
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