Planning For retirememnt

A financial checklist for preparing for retirement.

1.     Get any debt under control. Our mortgage will be paid off in eight months, if not sooner.

2.     How much money will we need in retirement? Are we saving enough? How much retirement income will you receive from social security and pension?  How much retirement savings do you have now?

3.     If it’s not a huge amount, are you prepared to live simply?

4.     What will your career plan be? Do you want to work full time or part-time, will my husband work outside the home?

Recently I grumbled to my husband about the downturn our retirement accounts have taken during the Global Financial Crisis. We have both had money invested on our behalves by my employer in my case and by himself, into super funds. With 2 mortgages to pay, we didn’t want to put what little money we had left, in as extra contributions, to be also eaten away.  I have never been too keen to see my money going into a super fund that was at the mercy of the global climate, so we had to think of more practical ways to prepare ourselves for retirement.  This is where the second mortgage comes in.  We bought ourselves a smaller, (more suitable for retirement) home with a small, flat yard which will be easier for us to maintain as we age. Our vision was that we will pay into this mortgage until a time when we want to move there, (at present, it’s our well used holiday house near a beach).  When the time comes for my husband to sell his business and for me to apply for a part-time teaching job away from home, we will at least have a well thought out and established place to reside. We have been investing in this home to make it more suitable for our needs. We have built an extension to give us a little more room, landscaped and planted fruit trees in anticipation for us to be able to take advantage of already productive trees. Solar panels and water tanks have been installed to reduce energy bills and make sure that we have ample supplies of water as we intend to grow most of our food to cut down of grocery costs.  We have collected a front yard full of old corrugated water tanks which we will turn into raised garden beds so that bending in our old age will be at a minimum.  Even collected materials to make a chook house and run so that we can benefit from the eggs.  When it’s time, the home we live in and will own very soon as we only owe approx. $12,000 will be sold and the other house paid off completely. Then we will be able to have a nice nest egg to help us out at retirement time.  We must buy a safe boat so that we can take advantage of our leisure time and ensure our protein supplies through fishing. 

Deb