When our productive stage is nearing completion and we are facing the retirement stage, apart from enjoying our free time and relax from a lifetime of work; surely we begin to consume the wealth we have accumulated throughout our professional lives, which we must manage in a conscious and efficient manner.
Here are a few guidelines that suggest taking into account to maintain your quality of life and have always desired peace.
Presupposed the amount of your income and monthly expenses. In this activity you must estimate and project every month your income: coming from your pension fund and your savings you have accumulated over your life or other income coming from your assets, and you’re allocating for your golden age; as your expenditure as payment for services, food, entertainment expenses, insurance, loan payments, travel, etc., among other activities that can keep performing. It is important that in your analysis consider the length of your retirement stage [life expectancy], so that everything fits perfectly into your plan over the years.
Estimates your assets and liabilities. Do you really know what you own and what you owe? This will let you know your personal balance and, on this basis, make decisions for the future. This point is closely linked to the previous point, since for example, you could sell an asset whose fixed costs impact your budget, or maybe you could sell it to improve your credit situation, among other scenarios.
Keep your plan coverage. It is important to keep insured. This coverage plan will allow you to stay within your budget and avoid disruption of higher order in your finances. Check your coverage and, if required, acquire an excess plan. In case of not having a policy, it is important that you obtain advice with your trusted broker so you can buy a plan that fits your needs.
Handle credit within your retirement plan. It is recommended and advisable that you can continue to use your credit cards as well as keeping some personal loans or asset, however, remember that you must always have the same control.
Allow your children to manage their finances. Usually when people reach their retirement stage, the children are already in productive age. It is necessary that the financial aid that bind them, are gradually decreasing in the coming months, or years, this face to begin to be independent and begin to adjust their own budgets.
Reserve for you and your partner from retirement accounts. It is always important to have some reservation on your money, since – on occasions – can children feel the need to ask for financial support. While our role as parents is to provide sufficient support, it is important that you stick to your financial plans that have worked to maintain your quality of life in your non-productive time. If you have any fear that something was to happen, you can put some of your money in a trust, where place as beneficiaries to your family.
Find an activity you’ve always wanted to do. Many people upon reaching his retirement stage, they are free of time. We recommend courses, workshops or even undertake – in a conservatively way – any economic activity that will allow you to be active and productive. You will see that you will enjoy it the most. This point, if you want to do this, should consider in your initial budget.
Consider investing in financial assets. Finally, investment in this stage is advised that should not be exposed to high risk, for it we must choose an investment that in the long term – in average – have a positive return in real terms, i.e., above inflation. You can consider meet with a financial advisor in order to plan your investment portfolio during this stage.