For those who have retired or are about to retire there is one advice I would want to give and that is your investments should spread out and not put just in one place There are several options. I am not going to recommend any options to you as each of us are placed in different situations. Safety is of prime importance and so one should study in detail about options that you may plan to invest in. I can think of a few - shares, mutual funds, reverse mortgage, paying guests, online earning opportunities, retiring in rural areas by selling the flat that one may have in the city....................
I had retired from office work last year although my wife is still working and due to retire 5 years from now. Our main investment for now is our home and our 2 cars which are all fully paid except for 1 car with a remaining 1 year of installments. My wife will be receiving a substantial retirement pay when she finally stops working. Our plan is to invest the money in another lot and build a house that we will rent out. So that means we will be having 2 houses. But the new house is to be located in another town. I hope that would be a nice investment for our full retirement.
That is a wise decision that guarantees fixed income. The only precaution would be to see that you get transferable tenants so that you can easily get rid of them if you are not happy. Here in India despite signing agreements vacating tenants is an ordeal. Many choose students and/or bank employees as they normally do not stick in one place. There is also a system prevalent here where advance is taken from prospective tenants.
Do not put all the egges in one basket is one of the wisest quotes from Warren Buffet. Ever since I heard this quote, I am trying to follow this. I never depend on one stream of income. I have always lived by the thought "what if my single income stream runs dry?" I never invest on only one company/program. What if I am scammed or the company/program where I have put my all money goes bankrupt?
I agree because in this volatile financial atmosphere there are so many factors that may negatively affect any type investment instrument at any time, therefore, it's prudent to spread your involvement over various types of instruments so that if a typical form of investment instrument should go down you will not loose all commitments, you will be spared from a total wipe out
@luri Warren Buffett was born much after me and I have known this adage since years (lol) I am glad that Warren Buffett believes in this norm and no wonder he is the richest in the world today. A lot of planning needs to be put in place before taking the plunge and it seems to you have done that. Hope all will go well for you and you will live a rolicking retired life. @explorerx7 Actually one should think of one's retirement security much earlier than before they retire. It should be around the age of 45 to 50 when one has the capability to think clearly and can see things on the horizon that could work well by the time retirement approaches. Lot also depends on how many are depending on the one who is about to retire as that becomes an issue to deal with.
@iamawriter Whoah! Warren Buffet is 86 years old! Does that make you 90? Anyway, not putting your eggs in one basket is one advice that I've heard for years - from my grannies, parents, and my school teachers. That's why I'm into both online and offline businesses and jobs. Strike while the iron is hot, work hard while you can. The best time to invest is when you're young and have plenty of years to recover from life's blunders. The younger you are, the more risky investments you can take. The investments options become more conservative as you approach the sunset of life. If you don't prepare for retirement, you'll never be able to retire comfortably. Many of us need to work even past legal retirement age. Not everyone can afford to retire, obviously. Not everyone will also want to stop working. The preparation for retirement does not begin when one is about to retire. It must start long before retirement age. The more one ages, the less opportunities there will be to diversify investments. The investment risks that a person can take will almost always vary directly with the stage of life he/she is in. For example: age 20 to 30s - aggressive age 40 to 50s - moderate age 60 up - conservative When investing in stocks, be it mutual funds or managed funds/UITF, you'll realize that stocks with the biggest potentials for earnings are also the ones with the biggest risks. At 60, it may not be in your best interest to invest in high risk stocks or even in stocks for that matter. The age of 60 is the time to reap the fruits of your stock investments. At any age, it will always be wise to invest in yourself and in your health. Don't be a victim of obsolescence. Upgrade your skills and make yourself indispensable to your company. Update your social security to make sure that you'll have no problems receiving your pension at retirement or in event of disability. Make sure that you have a form of health insurance in place because a single hospitalization can completely sweep your savings away. Stay healthy. Invest in good relationships with your family and even with your community. Lastly, work while you can because you may never have intended to, but modern and holistic medicine may make it possible for you to reach 100 years and up. You'll want to have money by then.
I know I am still on my 20s but I am now concerned that I won't have a retirement plan as I am not currently working offline. I am looking out for my daughters future right now. I am glad I came across this thread as it comes with great ideas on how to prepare. That is a nice quote to follow and very wise.
@Jamille That was too loud for my ears (lol) This saying is ancient but I am not ancient just a senior. You have hit the nail on the head. Retirement plans should start not when one is about to retire but years ahead. I hope this post is read by many specially your response that has a detailed plan for those who want to retire with peace of mind.
