How my Dad’s early retirement impacted the WHOLE family
Jul 19
When I was 22, my father, who was a high-ranking officer in the Navy, retired. He didn’t discuss it with my mom, nor did he inform me or my sister, Sarah. And you might wonder, why should he? After all, it’s his life, right? But that’s the thing about families – one person’s actions can affect everyone else, whether they intend it or not. I ended up taking a job at the college, my mom had to work extra hours, and so did Sarah.
But things have changed since then. I’m in a much better place financially now, and I’ve come to realize the importance of early retirement planning. Life is unpredictable, and anyone’s source of income can be disrupted. No one wants to find themselves in a situation like ours. So, I’d like to share some valuable tips with all of you, my readers, to help you secure your financial future.
Tip No.1 – Start saving and start it soon
Savings is a very worthwhile virtue. So we teach the kids the importance of savings from an early age. If you have not started, then start today. Be it for your retirement or for anything else, it will help you at the end. But it is very important to keep at it. Do not be disappointed if you have not been able to save as much as you wished to after a certain period of time.
Tip No.2 – What are your needs post retirement?
Once your steady flow of money stop’s after retirement, you will find it a bit difficult to manage the expenses. But the demands of a retired life are different from that of a working life. Research shows that while an average wage earner needs about 70% of their income after retirement, a person with a lower income is most likely to need about 90%. Though it sounds bleak and disappointing, early planning can make the situation simpler.
Tip No.3 – Will framing and estate planning
As soon as you have your first child, consult a solicitor to start working on creating a will. Also, remember that careful estate planning can help you safeguard your wealth, and secure your family’s future too. This is important because you’re likely to want the fruits of your labour to pass down to your kin. So, consider browsing through The Right Will Blog to gain an understanding of the need for estate planning and will framing.
Tip No.4 – Invest in the retirement plans offered by the employer
Many employers offer a retirement plan. It is wise to invest in such plans. It will lower your taxes, your company will contribute some and since the deductions are made directly from the salary, you do not have to worry about having to put in the money.
Additionally, if you have a long-standing dream of retiring and settling in a different country, for instance, Colombia, then the savings from a retirement plan can be used to fund your Colombia Retirement Visa. This way, you can turn your dreams into a reality, albeit you might also need the help of a good lawyer to help you immigrate successfully.
Regardless of your future plans, having a retirement plan tends to offer a certain degree of financial security, which can help you ease into your retirement life.
Tip No.5 – Go for the pension plans
Find out if your employer has any kind of pension plan. Enquire about its terms and conditions and what will happen if you change jobs. These are extremely beneficial because you will be saving a small sum every month. You might even be entitled to some benefits from your spouse’s plan.
Tip No.6 – Invest on your own
Investments are the only way you can increase your income. They are often based on how the economy performs and so a certain amount of market risks are always involved. However, a prudent decision always pays off. You might even buy a home as the price of houses is always on the rise. There are a number of equity release schemes that might come in handy.