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Sunday, 3 August 2014

HOW TO MANAGE YOUR RETIREMENT MONEY


Description: Portrait of handsome senior man gesturing on white background Stock Photo - 22223912

 

INVEST YOUR MONEY

 

Invest your money wisely in any of the long terms investment for better returns.  Money market with fixed index annuity which guarantees regular income for life similar to pension is one of them.  Nobody risks his money in stock market at that age of retirement any more.

 

 

STREAMLINE YOUR ACCOUNTS IN ONE BANK

 

Instead of keeping your money in different banks accounts in which it will be difficult to monitor, let it be in one bank where for easy monitoring by way of the bank issuance of  statement of accounts.  Experience has however, shown that as we have Nigerian banks where some may be distress and you will not know because they are scattered.  If it is one bank this will be easier to monitor.

 

AVOID UNNECESARY DIGGING OF HANDS INTO RETIREMENT MONEY

 

Some retirees are not financially disciplined by way of limiting their expenses in post-retirement life.  They continue with same lifestyle they were used to before retirement -  a very extravagant life such as attending social lives as if they were still in service.  It is not even advisable to do a capital intensive project like house building from it.  Some of this must have been done with while in active service because by the time you say you want to build a house from money there will be nothing life for investment that will still be bringing income for you.  Life will become miserable and difficult for you afterwards.  This is where the services of professional will be useful and appropriate as you are going to see in the next paragraph.  However, let me share the experience of a colleague of mine who has just retired from work with you.  This oldman went to buy Jeep car from his gratuity at about 1/3 of the total lump sum paid as gratuity.  Within a shortest time he drained his money because cost of servicing and maintenance also went with it.  At present, he is regretting it.  Don’t let your own be like that!

 

STICK TO YOUR PRE-RETIREMENT PLANS

 

It is advisable to have a team of professionals in areas like finance, law, medical and account to keep you inform on how best to maximize your pre-retirement plans.  This aspect has not been fully utilized which often responsible for awkward way of life of some retirees.  Some have just one advisor while others do not bother to have at all whereas it is very important to them so that you will not be distracted from your pre-retirement plans.  For example, a finance and account professionals will update you on the post-retirement investments plans and what you need to do when issues come up. A doctor  on hand to ensure that you don’t stress yourself unnecessarily.  He will also advise you when to rest and if you have any particular ailment or decease that will require special diet particularly as an aged person and so on.

 

For instance, the prayer of every retiree just like any other people is to experience growth in his investment and good health, but experience has shown that in practice things don’t work out as expected therefore there is need for constant hints of the experts to avoid devastating consequences of your actions.  As we grow old so are our faculties of reasoning and doing some of the physiques therefore there is need for expertise advice to keep us afloat.

 

All these are very necessary for the effective management of our post-retirement life so that as we grow old and aged we will be able continue to live in peace and continue giving scared elderly advice for the betterment of the entire society.

Sources

ambusiness@punchng.com  Costly Mistakes toAvoid in Retirement Punch Newspaper of July, 31st 2004

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