Article:  When is the best time to start planning for your Retirement?

Yesterday!!! But today is the second best time.

The simple secret to thriving during retirement years is to engage in a lot of thinking and planning before the period arrives. It is not a task to picture a rosy post retirement life - never-ending days of rest and relaxation; no stress; no pressure; no job and no worries. At least that's how many people perceive it! Talk to retirees for a while and a new picture emerges - boredom, financial worries, a lack of purpose and even depression. Find out some of the things you can do to make sure that your retirement lives up to your dreams:

Manage Your Debt - If you don't want to worry about money after you retire, you need to take action well before that farewell party. Because you're going to be on a fixed income after you retire and debt servicing can take a big chunk out of a fixed income. You need to retire your debts before you retire from your job. Pay off all recurrent debts. Once your salaries stop coming, the bills will continue to arrive. Without a doubt, you will need to make plans for contingent costs. Arrange for healthcare coverage - if for no other reason than the fact that it's expensive.

Plan Post- Retirement Activity – Determine before hand the sources of income and expenses: a) Income Sources should be put in place now. You may require investments that are safe with reasonable returns. Certain investments can be made to reduce future expenses e.g acquiring your own home; b) Likely expenses should be ascertained. Plan to ensure that item “a” above adequately covers item “b” and leaves a balance for contingency. Also make plans for the social and mental aspects of retirement. You may want to go back to school or volunteer for a local charity or even work part-time. These activities can create the opportunity to get out of the house and socialize at retirement.

Take Retirement for a Test Drive - A few years before you are ready to retire is the best time to gauge your preparedness for retirement. By this stage, you should have a good idea of how much fixed income you'll have to live with. To test out your retirement, you will have to start living as if you were already retired. As earlier noted, ensure that your expenses match your likely fixed income.

Conclusion – Spend quality time now in planning your retirement goals. When retirement arrives, you'll be prepared, ready and fine! Watch out for “investment management demystified” in our next edition!

Joke

Loud, mad, or sad
A psychology instructor had just finished a lecture on mental health and was giving an oral test.

Speaking specifically about manic depression, she asked, "How would you diagnose a patient who walks back and forth screaming at the top of his lungs one minute, then sits in a chair weeping uncontrollably the next?"

A young man in the rear raised his hand and answered, "A basketball coach?"

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