Think about how long you have until you retire. It seems like a long time right? Not really. 30 to 20 years might seem like a long time but here is the catch. If you’re lucky you will live 10 more years after retirement. If you’re blessed you might have 20 to 30 more years. Much more if you’re anointed. And these are years you will not be working.
No steady income could be a terrible thing but the people who really plan for retirement never have to live without steady income when their work lifespan ends. Without proper planning you could end up having a bad after-work life. Imagine going 10 years without a salary. That’s what life would be like. Worse if you have kids in school to take care of. But Retirement should be bliss.
If possible it could be the best time of your life but that would mean your life wasn’t very great so maybe second best time of your life. Let’s get the obvious one out of the way.
You need to ensure that you know as much about Social Security and your pension fund as possible. There are alternatives now for which companies can handle pension for the company you work for. Ensure your company is making those payments and know what the state of your pension is at all times. It is the first step to a blissful retirement.
Steve Frimpong is 73 and living life on his own terms. 13 years ago he punched in for the last time as Quality Control Manager for a Manufacturing company he had worked with for 17 years. Every month since that day, he has lived off his pension very comfortably. As you read this, he is in Dubai for three weeks on vacation, because why not?
You could acquire properties that you can sell later. But a relatively smarter option will be properties that you can lease out. Imagine getting constant income even after your working days are over because you own a commercial property that has occupants paying rent. While owning a whole property by yourself might be difficult financially, you could lease a property from someone for an extended period and sublet it at a higher return.
One two-story building in East Legon with 14 rooms changed Nii Tackie’s life. When he heard about the uncompleted building that needed another person to help complete for a 50% ownership, he took out about half of his savings and got involved in it. That was five years ago. He goes into retirement next year and already, he is making more money in a year from leasing that building than he did in 5 years at his job.
We keep coming to this point and there is a reason. When there is an option that grows your cash, you will hear about it a lot on a blog that is dedicated to wealth creation. Put your money where it will keep growing. 20 years seems like a long time away but it will be here soon and there are investments portfolios that have provided returns over 1000% in just 10 years. Imagine what will happen to that money if you left it for 20 years in anticipation of the rainy days called retirement.
In 2012, Edem had the opportunity to make more than a 100% return in 6 months through an investment opportunity from a new investment company. It sounded great but he decided to stick to the mutual fund he had been investing in. It had steady return but not as much as 100% return. Fast forward to 2014, all his friends who invested in that get rich quick scheme lost everything. It was a Ponzi scheme. Interestingly, his mutual fund investment which was making an average of 30% per annum hit an all time high to make 78% that year. That was the year he retired, imagine if he hadn’t invested wisely.
Many people invest a lot in their children so that they can have a cozy retirement sponsored by those children but the real MVPs are the ones who have enough left over for their kids and grandkids after they are retired or even pass on.
Be an MVP!