How "Retireables" Need to Invest?

Retirement Planning ideally starts when you start with your career or business. However, in most cases, like we had, planning for retirement takes the back seat. It emerges back when we are actually about to retire, or forced to retire in our 50’s.

Government workers have better retirement pay. They enjoy above average pensions. On the other-hand, Employees from private companies is mandated by law to receive 1 month per year of service as lump sum and about 10-15K per month of pension. More often than not, these are less than what retirees need for maintaining their lifestyle.

When people retire, their challenge is how to manage their retirement money. They do not invest their money but spend it in fixing their homes, replacing their old cars and travelling the world which they were not able to do before they retire. Their situation is much like a “Lotto Winner” with so much cash in their hands that they get so excited to spend it on things they have not enjoyed in life prior retirement. 

In their 50’s and on their 60’s, they find it difficult to land another job. So, they do not have other source of money other than what they receive in their retirement. I met retirees who incurred a lot of loans and credit card debts. They don’t know how to manage their debts. Debts and Loans payments, eats up a majority share of their “Lump Sum” retirement pay. They are left with very minimal amount that last them for a year to 5 years. That is the challenge for “Retireables”.

But again, there is hope. I know. I was forced to retire at age 52 by the company I worked for. The solution is a combination of right investment for passive income generation, proper debt management strategy, and a business to fund my retirement. In short, retirees should still be net earners in retirement. Their total income should still be higher than their expenses. They should have positive cash-flow. 

The Retirement Replacement Fund we need to accumulate to be able to retire with Financial Freedom is 20X Annual Income. So if we were earning about 30K/month, this is 360K/Year. Multiply this by 20, the Retirement Fund you need to have is 7.2M PHP. In all probability, you don’t get this from your retirement pay. You need to work for at least 240 Years to get to this. Even if the company gives a 4X of the government mandated retirement pay, you would have to work for 60 years to achieve this. 

So the solution rest on properly investing the retirement pay, managing the debts, and creating a business that can generate a passive income. By simply investing a total of 9,700/Month at age 51, you can accumulate 7.2M by the time you turn 70. This can generate for you at least 30K/month in passive income from Investment Returns (assuming a 12% Annual Return). This sum, plus the retirement Fund you invested, plus the monthly pension, can definitely provide you with a financially free retirement. The earlier you start the easier for you to achieve your Retirement Fund Goals. Imagine, with just 20 Pesos per day of Investment for 30 years, you can accumulate 2M Pesos! Make it 100 Pesos per day, you can accumulate more than 5M pesos!

I invite you to take action NOW! Call or text me at 0920-902-1217 for your  FREE Retirement Planning Session. Or eMail me at richbenj.santiago@gmail.com

I also encourage you to REGISTER on our ON LINE FINANCIAL COACHING  to learn more.

God bless our plans!