In the workplace, you are over 50 years old and you are able to get along with people and handle things with ease; when you return home, you also have to take care of your parents and family, and become the soul of the entire family with strong willpower.
For a long time, your world revolves around your family and shines in the workplace. As you grow older, your desire for money will not decrease. On the contrary, because of the increased sense of responsibility, you are particularly sensitive to money. In addition, you are about to retire, and you want to actively make financial planning so that your retirement life can be worry-free.
Even if you don’t want much, you must plan your retirement funds carefully
In your heart, the dream blueprint for retirement life is to be independent and do whatever you want to eat, go where you want to play, and buy things as you please; more importantly, take good care of yourself and don’t burden your family. To achieve this goal, you must first save enough money to retire well.
However, how much retirement funds should be saved? I saw financial experts sharing their retirement planning experience online. They believed that a retirement fund of at least 10 million yuan is enough to cover the needs of life. Because with this 10 million yuan in capital, if you invest it at an annual return of 5%, you will have an income of 500,000 yuan a year from investment income, which is equivalent to 40,000 yuan available every month.
Positively face the three steps of reliable retirement financial planning
l Step 1: Inventory of assets
The first step in retirement financial planning is to inventory assets first, so that you can understand how many assets you will have available on the day of retirement? The main sources of income come from: labor insurance, labor retirement funds and personal savings. Labor insurance and labor retirement funds can be checked on the government website at any time. The shortfall can be made up by personal savings.
Assuming that the assets are 8 million yuan, there is still a gap of 2 million yuan from the target of 10 million yuan. Next, you have to think about it. How many years do I have to retire before I plan well? How much money can I save each month? What is my risk tolerance? Should I choose active, stable or conservative investment products to achieve my financial goals?
l Step 2: Asset allocation
After counting the assets at hand, you cannot go all in (all-in on a single target) for profit. You must have the concept of asset allocation. The stock-bond ratio should be at least 4:6, and the proportion of conservative products should be higher as you get older. If you don’t know what investment target to buy? Then invest in mutual funds and let experts help you choose suitable investment opportunities. Stocks can buy global stock funds, and bonds can be allocated to overseas bonds. The dividend distribution methods of bonds include fixed dividends, floating dividends or no dividends, etc. First, choose the company you want to invest in, such as Walt Disney and AT&T. After investing the principal, if the bond is held to maturity and the issuer has no default, you can get back 100% of the bond face value or buy new bonds; one of the benefits of investors buying bonds is that they can get dividends; the dividend distribution frequency includes monthly, quarterly, semi-annual, annual and no dividends, so for people who are about to retire, bonds can be used as core asset allocation, which can protect the principal and have stable dividends.
l Step 3: Protection + Investment
In addition, you must pay attention to risks at this stage. This does not only refer to investment risks, but also life or health risks, because if an accident suddenly occurs at this stage, it may cause family disability. Therefore, in terms of investment allocation, you can consider combining life insurance and investment with a quasi-commissioned policy. This is an investment-type policy that the insurance company entrusts an investment trust company to operate on its behalf. Since quasi-commissioned policies generally have an "asset repatriation" mechanism, which is the so-called dividend distribution, they are very popular with policyholders. Some people who are preparing to retire or are retiring will choose quasi-commissioned policies as a source of monthly living expenses.
If there are considerations for asset transfer, you can also purchase a lifetime life insurance with multiple inheritance at this stage. This type of policy has the following characteristics and advantages: the payment period is shorter than the interest rate variable annuity that is generally aimed at financial management, and the premium is relatively low. The protection after death is high, which can be used to pay inheritance tax and take care of family members; if you do not want to receive it all at once, you can also choose to pay in installments, so that the benefits of asset transfer can continue for many years.
Facing the upcoming retirement life, the earlier you can prepare for personal financial planning, the more secure you can live your life. If you are worried that you will have blind spots when planning for retirement on your own, it is recommended that you find a bank financial planner to take stock of your current situation, expectations and gaps, and let a professional financial planner help you make a retirement financial plan that is more suitable for you to welcome the golden period of retirement.
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