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.