Retirement is one of the most critical stages of human’s life. Its inevitability makes it one of the most distant yet closed goals. From pre-retirement planning during the active working period to actual retirement planning and post-retirement management, retirement requires an arduous and discipline process.
A new book: Planning for Retirement, written by Mr. Charles Osibodu, a fellow of the Chartered Institute of Accountants of Nigeria (ICAN) offered detailed expositions on various steps and processes to attain successful retirement. Osibodu’s book, launched last week, combined the precious insights of deep knowledge of the subject matter and practical experience of the author, who has taken the same route to achieve a comfortable retirement. Besides, the provision of complementary quotations from the Bible added spiritual balance to the book. The book offers insightful reading.
Retirement generally falls under two categories- voluntary, official and involuntary retirements. Voluntary retirement includes retirement due to personal reason and retirement due to official incentives. Official retirement entails all retirements that arise as a result of statutes, rules and regulations including length of service, age and agreement. Involuntary retirement or forced retirement usually arises as a result of permanent or temporary disability including ill health and death as well as disciplinary actions and lack of requisite skills and knowledge.
Post-retirement period is usually characterized by relatively low income, waning strength, more expenses and diminished socio-economic status. But good planning provides foundation for a comfortable post-retirement period. In ‘Planning for Retirement’, Osibodu outlined what may be described as 17 golden rules of retirement planning. These include:
1. Work hard early in life: The first rule and perhaps the foundation stone of others. Work hard with the knowledge that you will certainly be unable to work or you may not find a work at a period.
2. Go for pensionable and stable jobs: Employment choice is a crucial determinant in the retirement planning process. Stable job with adequate compensations provides stable platform for planning.
3. Cultivate the habit of saving regularly: No matter one’s income, it’s important to imbibe the culture of uninterrupted savings.
4. Develop multiple streams of incomes: Multiple streams of incomes safeguard against constraint and possible downturn that may affect a particular source. When incomes flow from many sources, the person is able to sustain the financial plan irrespective of economic changes.
5. Get a good investment adviser: This provides you with the professional guide needed to navigate investment and economic choices.
6. Take a life assurance policy: Carefully select a reliable insurance company and obtain a life assurance policy, which provides succor to your family in case of untimely death. Some life assurance policies also provide the policy owner with opportunities to draw on the benefits.
7. Obtain medical and long-term care insurance: In the absence of an omnibus insurance policy that include healthcare, obtaining a separate medical and long-term care insurance policy provides you cover against health challenges that may come with old age.
8. Buy or build a house before retirement: Owning a house insulates you from recurrent capital expenditure that comes with rent. Besides, a house provides stability and preserves your social status.
9. Marry early in life: It’s better for a man that has fully matured financially and psychologically to consider marriage immediately. Early marriage allows you to complete huge expenses related to marriage including training the children in good time while you are still active.
10. Carefully select a spouse: A good spouse is an invaluable asset in personal planning; a continuing source of joy and strength. A good spouse is a motivator, a comforter, confidant, adviser and trustee.
11. See to business and financial development of your wife: This will provide a cushion in case of untimely death or involuntary retirement.
12. Educate your children: Do not be miserly when it comes to education of your children, send them to the best educational institutions you can afford. This frees you from future expenses and brings you comfort as they make headway in life.
13. Create a family time: To ensure peace, love and harmony in the family, create a stable platform for interactions no matter the tight schedules and strenuous requirements of your job.
14. Bring up your children in God’s way: Train your children to understand the morals, ethics and lessons in religious teachings. This will impact on their personalities and provide them with a stable compass, even when they are far away from you.
15. Prepare a Will and register it: A Will is a document containing one’s intentions and plans on one’s assets after death. Since death is inevitable, prepare for it by putting your house in order. A will enables you to straighten all issues that may lead to discord and quarrels.
16. Carefully choose your next of kin: The next of kin is the person that you would like to act on your behalf in case of temporary or permanent disability or absence. In other words, someone to be contacted by your employer, banker, investment manager, insurer among others for your entitlements and benefits.
17. Make a good succession plan: This makes life to continue unhindered in your absence. Develop an organogram that lays out functions and responsibilities of your employees as well as the top-down succession plan. It’s also important to decide on who will take over the management of your family business among your children and groom such appropriately.
Source: http://www.thenationonlineng.net/2011/index.php/business/personal-finance/29406-how-to-plan-for-retirement.html
A new book: Planning for Retirement, written by Mr. Charles Osibodu, a fellow of the Chartered Institute of Accountants of Nigeria (ICAN) offered detailed expositions on various steps and processes to attain successful retirement. Osibodu’s book, launched last week, combined the precious insights of deep knowledge of the subject matter and practical experience of the author, who has taken the same route to achieve a comfortable retirement. Besides, the provision of complementary quotations from the Bible added spiritual balance to the book. The book offers insightful reading.
Retirement generally falls under two categories- voluntary, official and involuntary retirements. Voluntary retirement includes retirement due to personal reason and retirement due to official incentives. Official retirement entails all retirements that arise as a result of statutes, rules and regulations including length of service, age and agreement. Involuntary retirement or forced retirement usually arises as a result of permanent or temporary disability including ill health and death as well as disciplinary actions and lack of requisite skills and knowledge.
Post-retirement period is usually characterized by relatively low income, waning strength, more expenses and diminished socio-economic status. But good planning provides foundation for a comfortable post-retirement period. In ‘Planning for Retirement’, Osibodu outlined what may be described as 17 golden rules of retirement planning. These include:
1. Work hard early in life: The first rule and perhaps the foundation stone of others. Work hard with the knowledge that you will certainly be unable to work or you may not find a work at a period.
2. Go for pensionable and stable jobs: Employment choice is a crucial determinant in the retirement planning process. Stable job with adequate compensations provides stable platform for planning.
3. Cultivate the habit of saving regularly: No matter one’s income, it’s important to imbibe the culture of uninterrupted savings.
4. Develop multiple streams of incomes: Multiple streams of incomes safeguard against constraint and possible downturn that may affect a particular source. When incomes flow from many sources, the person is able to sustain the financial plan irrespective of economic changes.
5. Get a good investment adviser: This provides you with the professional guide needed to navigate investment and economic choices.
6. Take a life assurance policy: Carefully select a reliable insurance company and obtain a life assurance policy, which provides succor to your family in case of untimely death. Some life assurance policies also provide the policy owner with opportunities to draw on the benefits.
7. Obtain medical and long-term care insurance: In the absence of an omnibus insurance policy that include healthcare, obtaining a separate medical and long-term care insurance policy provides you cover against health challenges that may come with old age.
8. Buy or build a house before retirement: Owning a house insulates you from recurrent capital expenditure that comes with rent. Besides, a house provides stability and preserves your social status.
9. Marry early in life: It’s better for a man that has fully matured financially and psychologically to consider marriage immediately. Early marriage allows you to complete huge expenses related to marriage including training the children in good time while you are still active.
10. Carefully select a spouse: A good spouse is an invaluable asset in personal planning; a continuing source of joy and strength. A good spouse is a motivator, a comforter, confidant, adviser and trustee.
11. See to business and financial development of your wife: This will provide a cushion in case of untimely death or involuntary retirement.
12. Educate your children: Do not be miserly when it comes to education of your children, send them to the best educational institutions you can afford. This frees you from future expenses and brings you comfort as they make headway in life.
13. Create a family time: To ensure peace, love and harmony in the family, create a stable platform for interactions no matter the tight schedules and strenuous requirements of your job.
14. Bring up your children in God’s way: Train your children to understand the morals, ethics and lessons in religious teachings. This will impact on their personalities and provide them with a stable compass, even when they are far away from you.
15. Prepare a Will and register it: A Will is a document containing one’s intentions and plans on one’s assets after death. Since death is inevitable, prepare for it by putting your house in order. A will enables you to straighten all issues that may lead to discord and quarrels.
16. Carefully choose your next of kin: The next of kin is the person that you would like to act on your behalf in case of temporary or permanent disability or absence. In other words, someone to be contacted by your employer, banker, investment manager, insurer among others for your entitlements and benefits.
17. Make a good succession plan: This makes life to continue unhindered in your absence. Develop an organogram that lays out functions and responsibilities of your employees as well as the top-down succession plan. It’s also important to decide on who will take over the management of your family business among your children and groom such appropriately.
Source: http://www.thenationonlineng.net/2011/index.php/business/personal-finance/29406-how-to-plan-for-retirement.html
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