One of the important things that you should bear in your mind is finances. But how can you determine that you are “financially stable” at the age of 55? And how can you consider yourself at peace in terms of finances?
To prepare you for this adventure financially, we offer you the following checklist that you can ponder on:
- Review your finances. Make a net worth listing of all your assets and present liabilities. This will lead you a summary of where you stand.
- Make a decision about when you plan to retire. Set your mind and have a target date.
- Know your CPF LIFE plan. You should decide on how much you will need each year during retirement. Run the numbers and see if you have enough assets to support you. If not, find a better CPF LIFE plan or you can adjust your annual income requirement in your retirement.
- Ensure rebalance your retirement plan. Make sure that your present investment carry minimal risk as you move closer to retirement.
- Hold on to current insurance. Don’t take lapses when paying insurance. It is important that in you’re in the right track. This would take you a better protection when you retire.
- Pay off your mortgage. If you still have a pending payment to your home, now is the time to pay it off, so you can enjoy your home during the retirement. Paying completely the mortgage guarantees that you won’t have to delay your retirement.
- Create a retirement budget goals. Before you enter the retirement age, make sure that you have enough money in retirement savings to support yourself and your family.
- Consider your healthcare insurance. Make sure that you understand the coverage of your health insurance. Or if you don’t have one, enroll yourself because later on health issues will be part of your retirement.
- Sell unnecessary assets. Sell your vacation house and other unimportant assets you no longer want or need. This would also help increase your savings when you retire.
- Plan Your Estate: You should already have a will, but if you don’t, get one drawn up as soon as possible. You may also want to put some of your assets in trusts or other estate planning tools to ensure your heirs can get them in a timely manner.
Financial planning before your retirement age is not the final chapter of your long effort. You should only consider what will be the options to have a peaceful mind in the right age.
Now, can you determine to yourself that you are financially stable? Share your thoughts at the comment section!
We are delighted to share what we know to you and help you! Stay updated for more articles!