If you are retired and you read this, I would like to extend my sincere congratulations for having the luxury of a pension. I’m sure you’re anxious or maybe the curiosity to understand how to better manage their pensions and activities to help his years as a boarder a comfortable financially so they can concentrate on enjoying life without the inconvenience of worrying about money.
1) to examine the pension plan
The first step you must take is to find himself exactly how your retirement plan in detail. Read the fine print and ask if uncertain. All retirement plans are equal. Normally, you should note if the pension is his whole life, or if it is still a certain age. Pension plan to provide an element of insurance for you? How much you pay each month? Where are the payments are made on an annual basis? Are organizations that provide these benefits to insured and what would happen if these organizations could fail in certain situations? There are ways to get tax credits and reliefs of his pension?
These are some questions you should ask questions about the plan.
Figure 2) for its core activities and liabilities
Now we understand better its security plan is important for you to look closely at the resource base of assets and liabilities that most people have is their home and possibly their own cars or other vehicles. However, these activities can become obligations. If you’re one of those people who have managed to pay their homes and vehicles, without having to rely on contributions, it’s great! But if you’re the majority, who still have your house every month and for vehicles to meet, we must consider whether you can reduce the total long term liabilities.
One possibility is to try to repay their debts as possible. We all know that the payment installments usually involve heavy interest rates and may end up paying three times the original price of the house of the vehicles. Paying their debts before it reduces the interest payable. Now I understand that you should keep the money in hand and there is inflation, if the money later, maybe a bit ‘of money is worth less, but in general, by hand or the bank is an illusion. In fact, it happened in the house and car, why not reduce the amount spent?
At this point you probably have some smart investors who believe that the use of money to invest, we can easily offset the interest earned on our liabilities. But this violates the first principle of investment, for example, you should only invest what is needed (for example, the surplus).
This brings us to our good neighbor, the financial investment, if the mutual funds, shares such as Royal Mail that pay dividends, bonds or other financial products. I remember, was highlighted in our financial profile has changed. For example, the typical owner should review their financial investments and reallocate the funds to ensure that the reduction of the likelihood. For the most part, the days of the need to speculate heavy to be put aside in favor of safer investments.
3) Take care of yourself
Surprised by the fact that it is a financial advice? If you think that the main cause of the cost of many pensioners are actually medical expenses. The little money saved by not going for regular health screening are often overwhelmed by the costs incurred by the retiree discovers he has a serious illness. This is not meant to scare, but it’s just a reminder. Do not bore you with statistics. Suffice it to say that at this age, as older adults face a higher risk of having a serious disease like cancer, heart disease, stroke … and so on.
Now the good news is that if you care of themselves physically, decreases the chances of it happening. Simple things like walking regularly, cut the consumption of tobacco and alcohol, or better still to stop smoking, staying socially and mentally active and higher dividends and so on is the best plan to invest freely. As pensioners, which should include regular checks to detect early signs of disease, preferably twice a year, or at least once a year.
4) Insurance
However, some serious diseases and disasters occur. Fortunately, if you followed the suggestion above, would have been recognized previously, but still pay the bills and so hospital to recover. This is where the insurance cover may seem a waste of money for some, but believe me, those who find themselves suddenly down with a serious illness and harassment by the hospital bills, you probably wished that he had received assurances. It seems ridiculous that people could buy insurance for their vehicles, yet none of their bodies. What is more important?
If you agree that your body is important and that hospital bills are ridiculously expensive, it remains only to find that an insurance company that should, if your retirement plan does not include insurance with him. The good news is that insurance is relatively cheap nowadays and often with a tie in the investment plans. As a pensioner, what is important to you is to ensure that insurance is very affordable and still cover the medical expenses and hospital care. There are more of these policies, and is only a matter of choosing one that suits you.
Another issue to consider is your home. It may be inconceivable to believe that his house, literally, it could burn or destroy, but natural disasters and accidents happen all the time around the world. The smart thing to do is get a basic insurance for your house if you do not already have one.
5) make a will
Why leave things to chance? In several regions, generally the government has sent its lawyer to divide the assets of a person under the laws of succession in that country. But if you want to cut exactly as you want, it’s a good idea to make a will.
6) Finding funds and continue to work
As a retiree, you may want to continue working in any capacity, whether independent or part-time vocations to fill the time. But if you are physically unable to work due to medical conditions or otherwise, you can get financial aid. There are many organizations that can help you if you are in a financial crisis and its retirement plan is not sufficient for their basic needs.
If you are unsure, contact with other retirees in their region to share information. Or simply use the Internet and the public to ask where to find help. The leaders of the local community, his former company, friends and local religious leaders are all people who can give an idea on how to get help.
7) Calculate the costs
Now that you have an idea of its assets, liabilities, insurance requirements, income and the like, it’s time to create an actual plan for how the cost of the amount you can pay each month.
Do this slowly. All guides on-line is essentially the same as a guide. No matter how many articles to read, nothing can replace this process for every elderly person is unique and has its own needs and desires. I really recommend you get a good solid financial consultant for this step, or someone very good with the finances that you know and trust. There is often a good financial planning professionals who are ready to run your finances at a very low cost.
However, to avoid this step, remember that the situation may change in future and, if possible, some basic plans should be taken into account.
Once done, you’re on track to enjoy their retirement. Although the management and knowing your finances may seem like a conventional accounting of all, I’m sure the financial freedom and confidence that comes with it is worth the time and effort.
