5 Do’s to Retirement Planning

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  1. Set Clear Goals Early

“Hmm I haven’t thought of it…55? 60? 65? Tomorrow?” *inserts weak laughter*

This is a common response when I ask some people when they would like to be financially ready for retirement.

On the other side of the spectrum, some would answer with: “I don’t intend to retire, I want to work as long as I can….*pause* But if one day I do want to retire, will I have enough or not?”

“I need $2.5Million to maintain my current lifestyle in Retirement?!”

You see that in the absence of clear goals, you are left to wonder and likely putting yourself up for disappointment.

When clear goals are set, you will be able to know what it takes for you to get there. And you will also know that once you have set them in place, you have the freedom to enjoy the surplus resources right now without having to worry about the Tomorrow.

  1. Brush up on Investment Knowledge Regularly

Sun Tzu, a Military strategist, famously wrote: “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat.”

I would not call Investing for Retirement an enemy, but it is something we need to conquer. The more you know, the less emotional or irrational you will be towards the risks that beset you in investing.

Some publications I would recommend one to start reading are:

  • The Business Times newspaper
  • RETIRE SMART: Financial Planning Made Easy – Lorna Tan
  • Money Wisdom: Simple Truths for Financial Wisdom – Christopher Tan
  • The Intelligent Investor – Benjamin Graham
  1. Make Regular Contributions Towards your Retirement Fund

Few can afford to set aside a single sum of amount and let it grow to the required Retirement sum.

Illustrating someone who requires $1Million to retire in 20 years’ time, he would need to set aside close to $311,804 to grow at 6%p.a.

More people can afford to set aside $2265/mth across 20 years at 6%p.a. to reach the same goal.

Whenever there may surprise bonuses or windfalls, apportion some of it towards your retirement fund to help you reach your goal easier.

  1. Think Long-term when it comes to Investing

It is proven that your chances of making money in a well-diversified investment portfolio increases the longer you hold on to it. Time in the Market is more important than Timing the Market.

You can read my previous article here titled: What to do, When You Don’t Know What to Do in a Turbulent Market?

  1. Seek Professional Advice

Let’s face it, Retirement planning is more than just saving and spending.

There are 5 key risks that people face accumulating towards and during Retirement:

  • Investment performance
  • Overspending and outliving your money
  • Underspending and living too conservatively
  • Cost of Medical Treatment
  • Inflation: Rising cost of living

It is a full-time job to plan for one’s retirement and my expertise to you as well.

I hope these 5 Do’s have been helpful for you. Do you have any other tips to share with my readers? – Leave a comment below.

Stay tuned for my next article on the 5 Don’ts in Retirement Planning.

DISCLAIMER: The views expressed here are solely those of the author in his private capacity and not necessarily to the author’s employer, organization, committee or other group or individual.

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About Me

Hi, my name is
Joshua Hoong
I’m a Chartered Financial Consultant (ChFC) at ACTS Advisory Group, IPP Financial Advisers specialising in comprehensive Retirement Planning, as well as a Million Dollar Round Table (MDRT) member.

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