Friday, August 3, 2012

Financial Advices near retire

Some employee are worried with retirement. They worried because they will not receive the paycheck from the boss anymore. For employee who use to receive the money from boss, it must be difficult to retire.

1. Calculate the entire of income after the retirement. Surely, you will not receive the paycheck again but you may other source income. You may build a small business that can generate hundred or thosand dollars a month.
Some retirement may decide to work as freelancers. Estimates money that you will receive each month. Do not record the freelancers income to optimistic because the freelancers income is unpredictable.
Having investment can make your life comfort. Also estimates the money from stock, bond, mutual fund and ETF. Consider the recent economic condition recently.
2. Calculate the spending
You can estimate the spending when you retire. It is not difficult to calculate the spending if you used to track your spending. We can just make adjustment for the spending. Sometimes we should delete the spending post or add some new spending.
3. Where place that you will stay
The retiree prefers to stay to suburban where they can breath fresh air and far from noisy. The place where you live can affect your finance too. 
Living in suburban is cheaper than in the city.
4. Payoff the mortgage
It is not good to pay the mortgage after the retirement. It must be difficult to pay the mortgage monthly after retire. You can resize your house to cheaper house so you can pay off the debt.
5. Adjust the portfolio
People who near retire need to adjust the portfolio. You are not young again to cover the high risk. Shift your investment to safer investment such as mutual fund, blue chips stocks, and others. Some experts says that the people near retirement can invest at 30% grow fund.
Invest at bond is not good investment due the low interest rate. The bond has risk too.
6. Open a business
In my country, the government offers the workshop for public service who approach retirement. The government hopes the public service can open a business too.
In my opinion, an employee approach retirement must be difficult to build a business because most employee has no experience in business.
A business is a risky activity, meaning we can either win or loss. Not all people can make money from business. However, the employee may try it to make money.

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