HOW TO RETIRE? - Re-visit!

Read? HOW TO RETIRE?


You can retire only when you fulfil these 4 pre-conditions:

1. Your children are financially independent (e.g. they got jobs),

2. You have zero liability (all your borrowings are paid up),

3. You have enough savings to support your lifestyle for the rest of your life,

AND most importantly,

4. You know what you would be doing during your retirement.

DO NOT retire till you meet ALL 4 Pre-Conditions. And of course you should not retire if you enjoy working and are getting paid for it!

The problem cases I know of are those who failed to meet Pre-Condition #4.


Uncle8888's Checklist:

1. Your children are financially independent (e.g. they got jobs),

Met.

No 1 and No 2 are now working.  No 3 is fully funded by Uncle8888's endowment policy matured in 2016. It is more than enough to sustain No 3 for his Uni education and living expenses till he starts working.

2. You have zero liability (all your borrowings are paid up),

Met

3. You have enough savings to support your lifestyle for the rest of your life,
AND most importantly,

Q: Should I not create a "passive" income - so that even when we are not working, there is something coming in?

Answer:

I think it’s neater to save enough money to support the lifestyle of our choice WITHOUT depending on (or expecting) any other sources of income during retirement. However, any such “income” that comes your way e.g. rent from property, dividends from shares, and money from your kids or the will of your favourite auntie, should be treated as “bonus” that could be used to pay for your “dream” list. A dream list comprises items that you would dream of doing if you got the money!


Still have some minor works in progress but no major concerns here!
 
Read? Retirement Income for Life??? (10)


4. You know what you would be doing during your retirement.


Yes and No.