If you are planning to retire in the next a few years, below I share a quick retirement checklist. Hope this checklist will be useful.
1. Negotiate mutual scheme (MSS) or severance pay.
If you plan to retire early, it’s no harm to ask the company for a mutual scheme package.
2. Remove personal data or information from work.
1. Downsize or pay off debt.
Debt makes you difficult to save and invest. Unfortunately most of us have debt of some kind. At age 45, you should have control of your money. Some of these debts should get rid the soonest ; personal loans, huge credit card debts, cash rewards loans .
Then try to pay off your other loans ie car loan, housing loan the soonest before you retire.
2. Review retirement budget.
You need to know what your monthly expense after retirement. It shall include food, utilities, health insurance, longterm loan, transport & wants.
Once you’ve determined the monthly expense, then you calculate backwards how much savings that you need to build up. eg, if you want to have a $10k monthly expense, then you need to have $1.5 Mil in your total account.
You may refer to below table for a quick calculation;
3. Save 10 -15% each month for retirement
Without a healthy amount of savings, you would not have a peace of mind during retirement.
4. Diversify your financial portfolio.
My recommendation is:
- 50% – Conventional funds (EPF, ASB, Tabung Haji)
- 30% – Mutual funds (equity 60%, bond 40%)
- 10% – Emergency fund
- 10% – High risk investment (if brave enough)
5. Plan health insurance.
Medical cost is not cheap nowadays. Hence to have a good health insurance is essential.
If you have a medical card, please ensure your budget should be able to cover the medical card’s premium fees.
6. Determine which your passive income that suit your best.
Passive income could be from your;
- dividend portfolio such as EPF, ASB, mutual funds
- rental income from properties.
- affiliate marketing by promoting a third party product at your own website or social media.
7. Make a will/estate plan (wasiat)
Having a will (wasiat) helps to avoid a lengthy probate process and you can decide how your estate will be distributed.
1. Health check up annually
Heath check up is essential so that you know the condition of your body and you have a chance to improve it.
Your life will be more interesting when you travel to other place. Imagine when you’re surrounded with your grandkids who eager to listen to your interesting stories.
3. Be active and exercise
You have to keep healthy so you can enjoy 20 -30 years of retirement. You can do activities like walking, gardening, cycling, tai-chi, mild exercise etc.
What would you add? Share your thoughts below;