Retirement Soon… Prepare Yourself A Retirement Plan 2 …
Planning our retirement ahead of the actual time is equally hard as trying to save extra money from our norm. It would be much difficult to actually adjusting our life to that of new retirement environment should we chose to ignore it now. As the old saying goes that one who laughs first will laugh last. Let me share few important tips that I had from a seminar that I have attended prior to my retirement.
First, getting started what about planning to free out of your existing debt?. I got cornered by the remaining amount of debts I had on the day of my retirement. No matter how small the balances is it is still burdensome to the retirement. My housing loan, my new car financing and some balances in my three credit cards. Three of my five children were still in college studying. Anyway, stop worrying as every problem has it own solution.
Managing debts very often is unbearable. It can be alleviated by planning them effectively before the retirement. I bought a new FWD jeep as I thought it would be difficult to secure a new loan upon retirement. Furthermore, I thought it could save me from some repair bills for maintaining my old 740 Volvo during the retirement. Few friends said retirement with style. Truly, that was a mistake I made prior to my retirement. I had actually created a new borrowing.
Second, try to allocate more of your present disposable income toward repaying your debt said the speaker. Otherwise, try to restructure the balance to make your future monthly installment smaller within your retirement capacity. In my case it was not an easy task as it requires much scarifies. I tried but the bank gave me thousands of excuses not to allow me to rescheduling my home loan. Finally with so much thoughts and guidance I sold my house and bought a smaller one for cash.
Third, try to get rid of your other consumer debt especially the credit cards. Lets how high is the credit lines be as upon retirement we have no mean to maintain it anymore. I settled all my balances left on my three credit cards but the big mistake again was by keeping them for future use. Believe it or not the amounts shot up to the maximum.
Remember! Bankers will not wait another month for the portfolio to turn default. The collection unit will closely follow up on loan defaulters with no mercy to legal proceedings, and it would be much entertaining if you have had given them only one phone line on your application. Upon settlement, I then switched to use Debit Visa Cards from two different banks. Think the benefit of cash-and-carry. Thanks God for granting me a small business running which actually helps my retirement life going smooth with uninterrupted small incomes.
Next, stop creating new borrowings. Control your spending and learn to live on a smaller amount of money another panel of speakers said. I had actually not taken the advice highlighted by the speaker in the seminar seriously and ended buying a new vehicle for other unbalanced reasoning.
The last but not least try not to use your retirement funds available to bail others out of their problems. The small loan that I have given to someone out of pity never returned. Again, should you need to expand your existing business, no matter how small that it be think it wisely as the business grows bigger the risks are getting broader too. I also used some of my retirement funds for my business expansion and find it hard to regain.
Good Luck and Happy Retirement with lots of money and loves.