As you make your way to work on the dreary daily commute, it’s hard not to daydream of better days ahead, relaxing around a pool or taking six month luxury cruises. Retirement! It’s the long-held desire of every working Joe who trudges through their daily existence. But dreaming is one thing – having the resources to live well after the weekly wage ceases in another thing all together.
It is important to plan for retirement; to ensure you have the capital behind you to walk away from employment and live, if not in luxury, a comfortable lifestyle. And the better organised you are, the earlier you can do it. Here are a few tips to help you plan for an early retirement.
Have a good superannuation plan
As pensions become a thing of the past (and continue to reduce as time goes by) we are going to see a rise in self-funded retirees. These are the people who have put together a solid superannuation package that is going to allow them to leave work at a relatively early age and live comfortably on their own funds. If you don’t already have a superannuation package, or aren’t sure of the benefits of your existing scheme, contact professionals such as Super Claims Australia through their website www.superclaim.com.au to see how they might be able to help.
Save now and keep it up
Savings can be a bit blasé in the technology age, but there remains no better way to build enough ready cash for the things you want. Retirement is just one of them. Start putting a little bit away each week and set it aside specifically for retirement. Put it in your superannuation for a better return, but if you prefer, any high-interest bearing account world do. Most importantly, don’t touch it. While it might be tempting to use a bit of the funds for a need here and now, every dollar you remove means you will be losing considerable future interest. Put it this way, every lost dollar could equate to an extra day at work!
It might also be an idea to throw yourself into the investment market, and not rely solely on cash savings. Put your money into different streams, such as high interest accounts, the property market or shares. Diversifying takes away some of the risks of future financial failures. If the property market drops, you should still be earning money from your cash and share investments. And if shares drop, the property market might be holding firm. This gives you more options and fewer risks.
Know your retirement needs
Lastly, try to plan for your retirement, not just financially, but practically. You need to know how it is you wish to live. This will in turn determine how much cash you are going to need when you decide to call it quits at work. If you intend to living frugally in your own little home, that is already mostly paid off, you’ll only need to set aside a bit for the future. But if you intend to live like a millionaire, taking summer cruises every second year, it might be a good idea to start putting away some cash today.
The best tip is to plan today for tomorrow. Develop a financial road map to take you on your retirement journey and you should be able to leave work without worrying about the future.