Now that I'm in my 40s, I am starting to prepare for my retirement.  Some may say it's a bit late for me to think about it, and some would think that I am overreacting to prepare for my old age.  But for me I believe it's just the right time for me to do so because I was already able to save some money and manage my expenses very well even if I have an unstable income being self-employed.  The Lord has indeed blessed me with so much that He is now challenging me to step it up to further grow the blessings He has given to me and my son.

You will just wake up one day and reality will start to sink in that you're about to retire and won't have an income to expect monthly.  I remembered this TV commercial before that a company threw a party to the retiree but the retiree seems not to be happy about it, probably because he/she doesn't have enough savings to cover his/her remaining years.  

One of the fears a retiree has is that if he/she has enough savings to use until he/she dies and if he/she has enough funds to cover for medical treatment.  

This is where financial literacy comes in.

There are a lots of articles available online and offline for us to read on how we can manage our finances efficiently.  Aside from that, there are also seminars and workshops that we can attend to know more about financial management and to have a hands-on experience on doing calculations in our finances.  It may sound intimidating at first, but once you have learned the basics, you will start to be more conscious about the decisions that you will make in terms of budgeting, investing, and spending.  

So the question is: How do I prepare for my retirement?

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PREPARING FOR THE FUTURE

First and foremost, one must have a goal.  Goals should be specific, time bound, and realistic.  For example, you want to have your own house in ten years' time, so you will make sure that within that period, you will have your own house.  You will do all the necessary actions to save money and to hunt for the best deals available so that you can have a house of your own.  You must be committed to the plan that you have made so that you will be able to achieve your goal.

Second, save.  It is a common practice that we only save what is left after we have deducted all our expenses.  The right way of saving is allotting a specific amount monthly which is not being affected by your expenses.  You 'force' yourself to save.  It may a bit difficult at first, but once you get the habit of saving, you will no longer see yourself 'forcing' to save money for the future.

Third, have an emergency fund.  Emergency fund is different from your savings as this is the fund that you will utilize when something unexpected happens (e.g. hospitalization, car repairs, death, etc.).  You must also commit that you will only touch your emergency fund when your main income has depleted.  It must not be used to purchase a new gadget or a new appliance.  Be sure to determine what is emergency in nature and not.

Fourth, get an insurance.  I was offered an insurance in my 20s but I was not that committed to pay for it and I am not that knowledgeable about insurances.  As a result, it lapsed after four years.  I wasn't informed about the consequences of non-payment, and the insurance agent who offered me the insurance didn't guide me very well.  It may seem to be a bit late to get an insurance at my present age, but then nothing is too late when you start preparing.  The only consequence is that the premiums are higher compared when I was younger.  

Fifth, make more money.  It means work harder, grow your money by investing or putting up a business.  Investment may come in different forms, which I will discuss later.  Of course, how can you prepare for retirement if you will only be contented with whatever you are earning right now?

Sixth, seek advice from financial experts.  Financial experts are there to answer all questions that you may have in managing your finance.  They will analyze your risk profile and will suggest the best investment plan for you.  Financial experts are not just to earn money from you, but to really help you grow your money.  Choosing the right financial expert to help you will also make you feel secure about your money.  Have a discernment to choose one based on their knowledge, work ethics, customer service, availability, and honesty.  Choosing the right financial expert to work with you is based on trust, so make sure that you are comfortable to discuss money matters with that individual.  It can be just someone you have met at an event, a colleague, or a friend.  However, it doesn't always follow suit that the financial expert that you will consult on should be a close friend.  Sometimes, too much familiarization makes the business transaction go haywire.  

Lastly, stay on your course.  Stick to your plan on saving and investing.  Don't worry, you're on the right track.


CHOOSING THE RIGHT INVESTMENT FOR YOU

There are lots of information out there available for you to read on how you can save.  There are also lots of investment plans available out there too, but bear in mind that the type of investment that you will get into must match your risk profile and the amount that you are willing to invest.  Some investment packages require higher amount but it has also higher yields and there are some investment packages that are friendly to the pocket but only offers average to low yields.  In addition, when you invest, it also depends on how long you intend to save (long-term or short-term).

Let me discuss the available ways for you to save and invest:

• Savings/Time Deposit/Emergency Fund--these are for your short-term investment plans and for easy withdrawal in times of need.