Category Archives: Retirement

Rewire your retirement

Retirementis a phase of life regardless of one’s age. Finally, you will have the freedom and the time of your life to work and let your vocation be a vacation. You will have the perks and choices to relax or make yourself productive again. It could be something you really wanted to do without   pressure. The exciting part is you will have now the opportunity and time to make the next chapter of your life more worthwhile. One thing you should not forget to do so before you retire is to make sure that your financial and social well-being are well taken care of .The question is, how will you start?

1.       Reflect what you have done so far – In the Philippines as of 2015 our average lifespan for both men and women is 72.75 years old (Source: Life Expectancy).  Retirement means second life so every moment should never be wasted. Evaluate your past, your current status and be excited for tomorrow knowing your purpose. Psychological research says that these are critical components of positive changes in life.  Check your finances; ask yourself whether you have enoughto live for the next 20-30 years. When you don’t have enough funds be practical or seek help from a finance professional.  Look at your bucket lists. You have a new path to travel. Successful retirees are consistent dreamers and action takers. Pondering on everything can take you to the next level.
2.       Be more fruitful – Having so much time but no concrete plans is equivalent to fatal boredom. If you are 60 years old and below, you still got plenty of options to choose from. Kentucky Fried Chicken founder Colonel Sanders took a big leap of faith when he used his retirement income of $105 from Social Security to sell his secret chicken recipe. With an incredible work ethics he built an empire. A fast food chain that we patronize using the only resources he got. Start making your life exciting. Expand your horizon by going out from your comfort zone.
3.       Be a mentor – “The heights and golden years of your life’’. Your life’s experiences will be    the guiding light and a compass to those who are lostin the dark. Create a legacy that will leave an impression and an impact to the society. Philanthropy is an old way of giving back to the community but look at Tony Meloto, the founder of Gawad Kalinga taught us that business is not all about capitalism but you can make a better world through the modern form of giving which is social entrepreneurship.
4.       Travel and explore unfamiliar locations– A time to relax and unwind. If you had been stuck in a place for a long period of time travelling will increase your openness to new experiences.  This is ideal if you were able to save more money. Visit other places nearby will be more feasible if funds are not enough. The more you interact with other people and adapt to their practices will not only gives you fresh perspective but also makes you creative. Traveling can give you liberty to explore new heights. Treat yourself and have time for a little bit of luxury sometimes.
5.       Find a fitness group – Good health and enough energy to get things done daily is a reward. One of your core responsibilities while you are ageing is to sustain your body’s health and wellness. Zumba class at the gym or at home, kickboxing, swimming and high Intensive work outs will bring out the best of you. Choose an exercise or an activity that best suits you.   A famous evangelist once said, “When money is lost; nothing is lost, but when health is lost, something is lost”. Health is wealth as they say. You are not getting any younger. Try to join a club or a wellness and fitness program wherein professional coaches will train you.  It will help you get motivated and reach a goal that you are trying to achieve. Do it now before it is too late
 Start designing the second half of your life. Do not let your fears of retirement gobble you up. Give your life some dignity to retire. Build your wealth brick by brick and soon you will build a bridge that will sustain the life you dreamed of a long time ago. For those retirees, never let dull moments kill and destroy your precious time. Make the most of what you have and be prepared. “Aspire to inspire before you expire.” 


David Isaiah Angway Is a Financial Evangelist

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Filed under Behavioral Finance, Retirement

Retirement Planning: Simple, deep and fundamental guide towards peace of mind




This is a guest post by Grace


Do you know that 8 out of 10 retirees will be dependent on their children for financial support? This statement was released from the Philippine National Statistics Office in 2003.
We are already in 2015, and yet I still see a lot of families who have their parents living with their children. It is happening and I am not even surprised because it has been in the culture of many Filipinos. I have been a Financial Advisor for almost 5 years now and witnessed many single young professionals stayed single for a long time without saving a penny because they spend quickly on gadgets; travel a lot, big purchases or constantly providing for their family (Mom, Dad and nephews). I have nothing against the latter but I still believe that making them financially secure through total dependency on you makes you a greedy person rather than a generous person. Why? Because you are holding them of their talents to earn a living by providing for themselves, In short, passing the legacy to them, so that even when you are not around they know what to do.
There are only 3 easy steps that I want to share to young people who do not yet know how to save for their future:
Step 1:
 The moment that we start working, we can already set aside 10% of our salary. What is the 10% for?  The 10% goes directly to God’s hand. How do we give to God? The head of the church is Jesus Christ and we are the parts of the body, the church should allow you to practice this willingly. We are in God-believing country and yes, it is a command in the book of Deuteronomy 14:22. The Bible talks about tithe which means a tenth of your first crop. 2 Corinthians 9:7 gives us an insight of the attitude of our hearts when we give to God. And how do we do this? We start a relationship with him through believing in Him. What is 10%, when what we all have is His. The gospel truly changes our values inside out which are truly critical in managing our finances.
Step 2:
This may vary on your needs and salary: at least 20% goes to savings and investments. Let’s say you have a P15,000 salary. What you can do is send 10% of 15,000 to your retirement fund and another 10% in your savings account. In this way you will have the discipline of making your money work for you and another for emergency funds.
Step 3:
What about the 70%? Our favorite part of our work is when we finally enjoy the fruits of our labor. This is the part where we spend for our basic needs and take a vacation. This is when we work around with the 10,500 or 70% of the 15,000. We budget around with this because we still need to be disciplined when it comes to our expenses.


In summary, this is the classic example of putting your money in order:
Salary = Tithe + Savings & Investments & Protection + Expenses
How we see our future is how we save for it.  Are we among those 8% of the retirees who will be asking their children for money because of sickness and old age that we cannot work anymore? I know some parents who felt ashamed already because they knew that their children wanted to provide for their own family. Or are we among those 2% who are financially secured?
A grandmother who planned her retirement 40 years ago, have been living an abundant retirement now. Because the time she spent with her family is when they visited her in her house while having a sumptuous meals together or even travelling abroad. She’s now 80 years old and never did I see her ask for financial support except when playing with her grandchildren.


We too can experience this kind of retirement in the future if we start now while we are still healthy and earning a living. Let us increase the 2% of the retired population and make more people aware of their discipline. The way we can do this is to start with ourselves and pass it on.
The point is this: whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully. – 2 Corinthians 9:6
Grace Panugayan is a Registered Financial Planner and working with one of the leading Insurance Company in the Philippines, Pru Life UK for 5 years.

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Filed under Finance Is Not A Rocket Science, Finance Tips, Guest Post, Peace of Mind, Retirement

Winning financial formula for everyone

 


Image by askmen


Every one is designed to win, wants to win and end up being a winner. Financial problems have simple solutions but that doesn’t mean it is an easy battle. Living your life should be exciting but sometimes you got knock down. With the right amount of knowledge, skills, and attitude you will be back on track.
1.   Get a financial coach
In a generation that is full of information it is easy to get distracted. You badly need insights from someone who can understand and willing to work with you in order  to improve your behavior so you can reach your goals. The end goal of a coach is to simply improve  the clients performance in making sound financial decision. The client will be held accountable for the results of their financial health.   Whenever you watch  Weight watchers and Biggest Loser, those  reality shows have been successful because  of a lot of grind in the  process and change in mental state of the contestants. After the coaching sessions  you are expected to win long term not just for a couple of weeks because the coach was able to empower you with knowledge and equip you will great tools in making your dreams come true.
2.   Manage your cash flow or budget
If you do this everyday or every week am sure you will win long term. By monitoring your behavior and making some action plans after you see the evaluation of your spending pattern it will help you to move forward. Many people are stuck and don’t know what to do with the money they earn, they thought saving some portions of it is the end of the story. What they don’t get is they also NEED to manage the expenses. When you let the expenses overtake your earnings sooner or later you will be in slavery mode (Debt). But if you let that money be in its proper place you are in a good hands. Treat your money like a soldier, if you will place all of them in a war against your old habits (enemy) you will lose a lot of them.
  
3.   Get an Insurance that suits your needs
Many people still don’t see the value of insurance. In a country that most of the people are hardworking but have a poor financial literacy program it is really sad that they can’t see this as a goldmine. You need to get an insurance to secure the needs of the people that you love. If you don’t have a love one then don’t get it. Every body is going to die and you need to prepare for it. I recommend  you to think long  term and know your value. If you are worth 10 million today then get a 10 million or more coverage. Don’t just get one, ask from your insurance agents the things that you need to know or else they might not open up.
4.   Write your will
Imagine  that you have an establish career, your cash flow is good,  you got an insurance and thriving investment together with a happy family but what will happen if you leave the Earth without a will?
If you don’t have a written will and you have so much assets that you have when you die, a complete stranger will decide how to split the  estate  under your name and your love ones like your children will suffer because of that. You are the one to blame if you will mismanage it. Talk to Registered Financial Planners for more info about this.
5.   Revisit your career plan
Planning still the best way to prepare for the worst. Every year should be an exciting year. When mediocrity strikes you then you are setting yourself for less. . Domino effect will happen and you will end up unproductive. Your employer won’t think twice to kick you once your performance drop to the lowest level. Business is business and it will be better to let go of you.
The advantage having a career plan is you got a road map on how to climb up that mountain of road blocks ahead of you. Career choice starts within you not from your boss. You need to write down your skills set that will match to the next job that you have. Pray for divine intervention everyday because it will be a tough decision. You  either might resign and look for the job that you really want or stay within the same company but look for a higher position. Changing your career will also have an effect with your cash flow so you need to think and weigh in things for you to grow.
6.   Have a business.  
Being an entrepreneur needs a lot of commitment. But if you are dedicated to grow more with mistakes and not regrets having a business is a gateway to your success. Grinding and pounding to your next sale will help you get out from living from paycheck to paycheck. Everyone is not cut to be an entrepreneur but you need to think like one. You have crazy abilities. Know yourself and grow it.
I noticed that all billionaires are businessmen who started from ground zero. With your effort, passion multiply it with a really good attitude will help you go on a long way.
7.   Build your  retirement  plan
Study shows that more people once they retire from work are expecting a lot from Social security but according to the statistics, GSIS and SSS cannot sustain the lifestyle that you want. Now, if you want to live comfortably try to make a better choice. Build it brick by brick thru putting your extra funds  in a good pool fund or put it in a stock market with a combination of peso cost averaging multiply it with discipline your money will grow exponentially.  
Our economy is growing plus the pooled funds are doing really well. If you start with 5000 and every month you keep putting the same amount. Historically the equity funds can give minimum of 12% annually. When you do this for the next 30 years you will accumulate 8,258,577.94 regardless of the currency. With the compounding effect PLUS with time and value of money this will roll over and I think you can already live with a retirement in a decent way.

Image from Dave Ramsey Website Financial Calculator

David Isaiah Angway is a Financial Evangelist

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Filed under Business, Financial Coach, Financial Formula, Retirement, winner