Do you have difficulty thinking about your retirement?
Does the world of no more work, endless spare time and unstructured days seem completely alien to you?
If you’ve answered yes to those two questions, you’re not alone. Plenty of my clients, working busy jobs and with infinite pressures on their time, simply cannot imagine a life when they don’t wake up to an early morning alarm and spend the day hopping from one appointment to the next desperately trying to get through never-ending to do lists.
But one day that life will end and when it does, without exception, every one of us wants, and needs, to have financial independence. By that I mean the luxury of choice regarding how you spend your life in retirement without having to worry about whether you have enough to cover your living expenses. To achieve that, you need to have accumulated enough assets in order to replace the income you currently get from your employer, your business or perhaps both.
The inability to imagine future retirement is perhaps one of the reasons why so many people put off planning for retirement. Another reason is that it seems like too big a task. However, taken one step at a time, it is achievable. Here’s what you will need:
A comfortable retirement starts with defining a financial plan. That means quantifying your retirement goals. The two most important questions to consider are:
- When do you want to retire?
- How much income do you need?
Disciplined saving is key to accumulating enough assets to give yourself the income that you have established that you need in point one above. Start as early as you can, determine how much you are going to put aside every month and then make sure you do it. Procrastinating over this will make life much harder later on when you have far less time in which to achieve your investment goals and will also have missed out on the years of compound interest you could have been earning.
3. Assets that perform
It is depressingly common to see potential clients who have been managing their investments themselves with disastrous results. Worse still are those who have entrusted their assets to so-called professionals who have put in place portfolios that are badly underachieving. The key to success is in careful selection of assets. Well-chosen assets will produce long-term and consistent results to build your wealth through capital growth. You may think that a difference in performance of a couple of percentage points doesn’t matter a great deal but over a number of years that difference can have a huge impact on the value of your portfolio, and therefore on your income, when you come to retire.
The key here is to choose an investment manager with a proven track record and that offers a wide choice of funds so that you can select the one which best fits your individual circumstances taking into account your own personal tolerance to risk.
Do you want help with achieving the above three steps? Here at Infinity we have a wealth of experience in helping clients establish long-term goals to secure their future financial security. In addition, we work exclusively in Asia with Tilney Bestinvest, one of the world’s best investment managers who offer a wide range of investment products to help you make your assets perform to the level you require.
If you want to get started planning your financial future, get in touch today!
A leading provider of expat financial services and wealth management services across Asia.