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Why retirement? Can I do my own financial planning for retirement? How to create a financial plan for retirement? So in this blog post, we will walk you through this article to learn how to create a financial plan for retirement.
What Do We Learn From An Ant?
Here is what we want you to learn from an ant. An ant was wise because 🐜 prepared to save itself from hunger during the summer. So shall you. The ant had prepared grains in store early before the serious rain came. So shall you. The ant prepares grains for the rain, so shall you.
Let me explain as an example of a wise ant:
An Ant preparing to save itself from hunger means you must prepare for the bad time while employed. The Ant having prepared early in the autumn means you must prepare so early – don't wait till you are old or fired or tired.
The ant keeping a large store in the summer means you must build a portfolio enough or more asset colum so that it will take care of you when your body no longer works. I mean you must build a financial fortitude around you so that you won't get a headache. The ant preparing meat for the rain means you should prepare financially for the future food when your body may no longer works at old age.
And to avoid heavy summer that can stop the ant from collecting seeds, the wise ant prepares it in the store for the rain quickly. It prepares great grains quickly in the store because time and tide wait no for man.
So to avoid financial frustration or financial disaster in the future, you must prepare to fill the pyramid of money each, whether you have high or low income while employed. As a wise ant began with seeds in its plan for the rain, so you must begin with a saving plan to invest in for the future unpredictability.
Why Retirement?
Because you have finished what you started.
You do well because you have been faithful to the little that you have while employed.
Because it brings you great joy and peace.
Because you are no longer under your boss’s slavery from your 9-5 job.
Because you serve employment for 35 years or more.
Because your body no longer works.
Because you can not remain young and active
Because anyone employed anywhere in the world must start with their saving plan for future retirement.
Because you provide for your retirement by investing your earned income in direct and indirect investment that will take care of your old age years.
Difference Between Direct and Indirect Investments on Your retirement Plan
Direct Investments are investments that require that you put up your own buildings automatically with a compound interest for the provision of tangible products or services.
And indirect investments or portfolio investments involve putting money into financial instruments such as shares, bonds, treasury bills and money market instruments, including banker's acceptances, commercial papers and bank deposits that are generally less volatile but also have lesser yields than shares.
Can I Do My Own Financial Planning for Retirement?
Yes. You can do it yourself. You can do it through your financial goal. You can do it through the retirement process. You can do it through saving and investing automation daily while employed.
You can do it by writing down what you want, how much you want, how many years you want to retire and why you want to retire. You can do it through personal investment. And also you can do it to earn income each month through opening retirement account. Nobody control you in their hands.
How to create a Financial planning for retirement in 9 Steps
Step 1: The best time to start planning for your retirement is to get your first job. But if you are not working, the first step is to get what will be giving you income daily, weekly or monthly.
Step 2: The best time is NOW. Don't wait till tomorrow you can do today. Start NOW even when you have low income. I mean save up to 25 % NOW and daily.
Step 3: Study to understand the subject of investing. It will help you decide how much you want to retire and how many years you want to build a portfolio. Understand both direct investments and indirect investments.
Step 4: Determine or decide the amount of money you want to save monthly. And ensure that the amount you save regularly should not be below 10%. And ensure that the compound interest you invest to grow money should be higher than normal savings.
Step 5: Look for legal investment opportunities where you can invest automatically for the future retirement. Find any investment platform/apps that pay you higher daily, weekly, monthly and or quarterly.
Investment platforms may involve saving schemes, investment club or estate investment, quarterly mutual funds, fixed indexed annuity, lifetime income annuity, Roth IRA investment. Find any investment vehicle that offers 20% or 25% per annum daily.
Step 5: You may become a billionaire retiree or a millionaire retiree, depending on your age and your amount. The early you start with, the better you get.
The higher the percentage you invest daily at 20%, the lower the number you become a billionaire or millionaire retiree even when you are old. And if you invest small daily while young at 20 or 25, you lengthen the number of your days until you retire with billions(s) of dollars.
Step 6: To become a billionaire retiree in lower numbers, use investment strategy faster. Check this out from a female billionaire retiree at 53 as an example while she was an employed accountant.
Step 7: Use a loan or annual bonus to diversify across investment sectors or some assets fast for future harvest at your lucky retirement. Remember time waits for no man. Don't focus on savings schemes or pensions or 401k monthly contributions alone.
Step 8: Expand your horizon on investment/personal finances books to become a young-adult billionaire retiree in lower numbers if you want so.
Step 9: Stay disciplined. Stay patient and consistent. A patient dog eats a fast bone at its retirement.
Use free financial planning tools to grow your wealth or improve your financial capacity.
Check out this link to learn how to estimate your retirement and also benefit from Social Security Retirement Estimation. Check out this link to learn how to ask a financial planner for a comfortable retirement.
I hope you find this article helpful? Do you want to say what you read in this article? Please leave your comment here in the box
Happy Retirement!
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