7 Things to Do Before You Retire

Preparation for old age should begin not later than one's teens. A life which is empty of purpose until 65 will not suddenly become filled on retirement. ~ Arthur E. Morgan

It is reported that the average lifespan of Malaysian is about 75 years. When you retire at age 55 there are still 20 years ahead of you to live. What should you do before you retire so that you are financially independent during your golden years?

1. Settle all debts: Settle all your housing loan and car loan and most important of all, your outstanding credit card debts. To be debt-free is the way to live a carefree life for senior citizens. 

2. Reduce investment risk: Assess your portfolio and rearrange to reduce risks. As a simple example, when previously your investment consists of 60% stocks and shares and 40% fixed income perhaps you should now change to 40% shares and 60% fixed income.

3. Stick to a budget: When you retire, there will be no regular sources of employment income except your own savings and investment. It is important to stick to your budget so that the fund can last you as long as possible.

4. Emergency fund: It is needed more than ever before, especially to cover unexpected emergency medical treatment and related expenses. The amount should be readily available. 

5. Cash flow: Determine the amount you require every month and ensure that there will be steady streams of cash to meet your monthly needs. 

6. Mental attitude: When you retire from work, you do not retire from life. The key is to live a meaningful life when you stop working. Continue to stimulate your mind by learning new things that you are interested in. Blogging is an excellent way to fill your time. You learn about blogging and write articles on your blog every day.

Don't act your age [in retirement]. Act like the inner young person you have always been. ~ J. A. West

7. Look after your health: When you need insurance the most at old age, insurers stop covering you or if they do, it is going to cost you a bomb. The key is to look after your health to avoid critical illnesses and falls.

After you're older, two things are possibly more important than any others: health and money. ~ Helen Gurley Brown

Are you ready to enjoy your retirement?

Source: 7 Things to Do Before You Retire