Are you ready to retire?

Retirement may be the longest time in your life without having a job and a fixed income. Retirement planning is a little more complicated because the success of your plan depends not only on how the balance of pension funds accumulated, but also how much you use the money each year during your retirement.

The first step is decided when you want to retire. For those who are working as an employee, aged 45-55 years could be an option. Whereas if you are an entrepreneur or professional workers, you may stop working directly in the age of 60-65 years. For example, Alex is 35 years old and wants to retire at the age of 50 years. Then, Alex has 15 years to collect the pension fund.

After that, decide how long you plan to fund the lifestyle in retirement. That is, until what age do you plan to be financially independent with a desirable lifestyle? Targets are usually determined between the ages of 75-80 years, depending on one's life expectancy.

Next is to determine how much the desired range of the cost of living when you retire. Most easily is using the 100% of the cost of today living.

In general, the costs that will decline at retirement are the cost of transportation, household expenses if the children are married. Meanwhile, the costs that may increase are the cost of health, vacation, and gifts.

Financially free.

The best advice that can be given is to look for passive income to cover living expenses in retirement. Source of funds for your retirement today generally from Social Security, or Pension Fund from your company, and of course your personal assets.

Statistically, those who can live comfortably in his retirement are those who have passive income from investment assets. If all the cost of living in retirement can be covered by a passive income, then you are already financially free, or achieving financial freedom.

Liquidity asset that can provide passive income is a living from the profit-sharing of your bank deposit account, and take advantage of the returns of mutual funds or stocks. Thus, your initial investment fund will never withdrawn.

In contrast, if you choose to have illiquid assets, such as property. Try to keep these assets remain productive, such as rented it. Alternatively, having a business, so you could earn a profit every month.

By reading this article, at least you start to think to plan a wonderful retirement. The next step is to make retirement plan, and implemented appropriate, in your personal financial planning. Remember, most of the income generated at this time is for living prosperity in the future. So, are you ready for retirement?

Live a beautiful life!

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