4 ways to make the most of your retirement

Retirement is not an end. It is the start of a new phase in life. (Rawpixel pic)

It is likely you have achieved most of your financial goals by now, hence the ability to retire.

However, many retirees face an identity crisis and a loss of purpose because they are not used to being idle. But is this really the end of your financial journey?

Here are four ways to reclaim your sense of purpose and continue on your journey to greater financial security.ADVERTISING

1. Build up a stronger safety net for yourself and

Where previously the goal was to accumulate as much wealth as possible, the objective now can be to create an additional safety net for you and your family.

You and your spouse are getting older and the need for medical services will likely increase.

Old age brings its share of ailments and the number of people with diabetes, heart disease and hypertension are on the rise, along with the cost of healthcare.

Additional insurance products, such as long-term care insurance, disability insurance and life insurance are good investments.

The increasing difficulty for the next generation to afford housing means that parents often have to kick in some of their money to help out with the deposit, or sign on as a joint name for a housing loan.

Your financial considerations change when you retire and building a stronger safety net is always a good thing. In retirement, continue to consider how to invest in yourself for your financial future.ADVERTISING

Now’s the time to live the life you always wanted – like travelling around the country. (Rawpixel pic)

2. Live the lifestyle you always wanted

Now that you are retired, you might not need as many things as you have now. Do you still need two cars? Does that big family house still suit your lifestyle? Do you need so much furniture?

Ask yourself how you want to live. That dream of buying a motorbike and travelling around the country with your spouse and friends could be a reality now.

But that kind of lifestyle would require a different kind of financial planning and investment. You would need a regular stream of income from investments. The investment portfolio should regularly generate steady profits and income and not aim to maximise profits.

Safe investments include properties that generate rental income, blue-chip stocks that pay regular dividends and fixed deposits with guaranteed returns to ensure you do not have to work or rely on the children for money.

3. Embarking on a new education

Many would have taken up professions such as engineering, medicine, finance, business and others at the behest of their parents.

Retirement is the perfect time to further your education in the things that interested you all those years ago.

More and more retired people are going back to college – in China, there are over eight million students in 70,000 institutions of higher learning set up specifically for retirees.

Online learning is easily accessible and there are all kinds of courses available at sites such as EDX, Udemy, Khan Academy and many others.

Universiti Putra Malaysia offers a programme designed for older people that allows them to learn at their leisure.

Just because you are retired, does not mean the learning has to stop. (Rawpixel pic)

There is growing evidence that constant learning as you age maintains cognitive abilities.

According to a blog in Scientific American, those above 58 years old who took classes increased their cognitive abilities to a level similar to a 30-year-old’s in just one and a half months.

Start early to save for education in later life. A licensed financial planner or education consultant could help in making the best financial decisions for your further education.

4. Possibilities of a new career and

Retirement is an opportunity to pursue new goals. You might discover an entrepreneurial streak and set up a new venture. Or someone with a passion for theatre could take up writing or producing plays.

So, the new financial goal would be to finance that new venture. The financial objective now is to be able to do what you want, what you are passionate about.

You never know what you can achieve when you wholeheartedly pursue something without the constraint of financial commitments.

A person is never too old to try something new or learn something new. Many of the most successful people achieved their success much later in life.

Colonel Sanders, the founder of KFC, worked many jobs, such as steam engine stoker, insurance salesman and petrol station operator before enjoying success with KFC in his 60s.

Consider retirement as an opportunity to do just what you want – like taking up painting or writing. (Rawpixel pic)

Ray Kroc, the founder of McDonald’s, sold paper cups and milkshake mixers until he was 52 before starting the first McDonald’s restaurant in 1955.

Mary Kay, the founder of Mary Kay Inc, sold books and home décor door-to-door until she was 45, before establishing Mary Kay Inc.

Your financial journey after retirement might lead you to new places and it is important to be open to the possibilities. Plan your finances early so there is enough money set aside to pursue passion projects and ventures.

Consulting a licensed financial planner or business consultant will help tremendously in your future endeavours, without risking your retirement lifestyle.

Conclusion

Retirement should not be thought of as the end of a career or your financial journey.

Retirement is the start of a new stage in life and the perfect time to live out your dreams.

It is also the time you can think about how to secure the next generation’s livelihood and ensure you are not a burden to them.

Source : https://www.freemalaysiatoday.com/category/leisure/money/2020/11/02/4-ways-to-make-the-most-of-your-retirement/