In the first blog post of “How to rein­vent life after 40, 50, 60? Part 1”, I touched on why we should rein­vent our life after 40, 50 or 60.

In the sec­ond blog post of “How to rein­vent life after 40, 50, 60? Part 2”, phys­i­cal health and rela­tion­ship were dis­cussed.

In the third blog post of “How to rein­vent life after 40, 50, 60? Part 3”, mental/spiritual being aspect was dis­cussed.

In this blog, I shall go into the 4th account of our life accounts, i.e. actual money in the bank.

Is money every­thing or every­thing is money?

Unless you are a mil­lion­aire or bil­lion­aire by the time you are 40,50 or 60 you would most prob­a­bly would like to look seri­ously into your finances per­haps even before you reach 40.

I once asked a close of my dia­mond bach­e­lor friend how and who is going to take care of his life after retire­ment say when he turn 70 or 80.

Non­cha­lantly he replied, ”Let’s cross the bridge when the time comes.”

I pressed further,”How man brother?”

Then he said, ”My broth­ers or sis­ters will take care when I am old or you all [his close friends is what he means] would take care-lah.”

In my heart I was think­ing by the time you are over 60, your broth­ers and sis­ters or close friends would also be of the same age group. They would face the same set of prob­lems as you do. Will they able to help you?

That’s where you need to pre­pare how to go through your “old age”, plan well in advance, espe­cially with regards to your actual money in the bank.

You may soon real­ize every­thing needs money espe­cially when you get old and your earn­ing capac­ity or abil­ity has dimin­ished or expired.

Dif­fer­ent con­cerns for dif­fer­ent age groups

Gen­er­ally peo­ple enter­ing 40, 50 or 60s would need to take care of the fol­low­ing issues which would be of great concern:

1) Children’s edu­ca­tion – source of funds

2) Loans and mode of repayment

3) Health and med­ical care

4) Retire­ment funds

If you are mar­ried and have chil­dren, how are you going to finance your children’s edu­ca­tion espe­cially those who want to send them over­seas to rep­utable universities?Unless your chil­dren can get a part or full schol­ar­ship to study over­seas or locally, chances are you have to put aside some form of edu­ca­tion fund when the chil­dren are born. It is bet­ter to plan early. Or else you might have to work or slog through your 50s or 60s.

As cost of hous­ing or cost of home own­er­ship is going up and up every year, some would be forced to stretch their loans (hous­ing, car, per­sonal etc.) to longer peri­ods, thus delay­ing the retire­ment age and nat­u­rally delay­ing more grat­i­fi­ca­tion. Some might have to work out the loans repay­ment that is man­age­able. Refi­nance as one of the options, if nec­es­sary. How­ever, don’t take unnec­es­sary risk with rumours of high returns.

Another aspect whose cost is bal­loon­ing year after year is the health and med­ical care. The most log­i­cal solu­tion is to have a bas­ket of med­ical insur­ances from good and rep­utable insur­ance com­pa­nies at an early age, as early as your first job.

The other aspect is to keep your­self as healthy as pos­si­ble to avoid or delay high med­ical costs.

Sim­i­larly plan­ning a good retire­ment fund (be it sav­ings in your country’s com­pul­sory retire­ment fund or own sav­ings or other forms of invest­ments) should be done as early as pos­si­ble (best is start­ing form your first employment).

My per­sonal rec­om­men­da­tion is con­sult your per­sonal finan­cial con­sul­tant or those who are well verse in these areas.

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1 Comment on How to reinvent life after 40, 50 or 60? Part 4

  1. Ariff says:

    Thanks Albert for invit­ing me to join teh tarik kaki. Very inter­est­ing posts. I pre­pared myself quit early and now at 55, I think I can retired peace­fully. Now, I am doing a lot of vol­un­tary works. The “ABC ..” Course, that I attended was very fruit­ful. Thanks to that guy, Retired Col. Din (can remem­ber his full name), who facil­i­tated the Course.

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