Retirement Investing
Many of us will spend 20
years or more in retirement. That’s about half the time of our
working lives.
For example, retirement
might be working less but having more time to take advantage of outside
hobbies and leisure activities…or start that new business venture.
For many, it may mean moving to a different
part of the world or traveling. The choice is up to you. How you handle
your personal and financial affairs today will determine what you can do
tomorrow.
Like it or not, a
greater portion of your retirement income will come from what you have
saved. If you are not a saver, you may be putting your future financial
security in jeopardy. Where will your retirement income come from?
Call us for a personalized discussion as to how
we can help you in this area.
Here are some myths about retirement planning to
think about and guide you toward better planning decisions.
Myth #1: When I retire, I will need a
fixed-income for 10 to 15 years. People are living longer. When
planning for your retirement, assume you will be living to at least
age 85 or longer.
Myth #2: My living expenses will be lower. Are
you sure your mortgage will be paid off by the time you retire? Will
you still be supporting your children and possibly your parents? You
will still have to pay everyday expenses such as electric bill,
insurance, etc. inflation will increase the cost of food, clothing
and health care. And while your work-related expenses may go down,
you leisure expenses may increase.
Myth#3: CPF will take care of retirement. You
should never count on your CPF to replace a substantial portion of
your pre-retirement earnings.
Myth #4: I will be in a
lower-income bracket. If you have done a good job in building your
retirement assets, there’s a good chance your income would not drop
that much after you retire. That means there is a good chine you
will remain in the same tax bracket you are today.
