How you Should prepare for Retirement

RETIREMENT! Most of us dread that word, because we don’t plan for it. We just enjoy our lives buying flashy cars and luxurious houses, and in no time we are 50 years of age with no savings at all! When I thought of this, I decided to find out how we can prepare for it so that when it comes, we are not scared but we rejoice and are glad. Then how should we prepare for it? We should;

1. Invest in government and private bonds; investing in bonds, be they government or private bonds is a very good way of investing your money. Why? You may ask. This is because money tied up in bonds will never depreciate to a level less that the initial capital that you first invested. If you invested 200,000$ now, five years from now, your principal amount could be more than 250,000$ if the interest rates are good, but never less than 200,000$. Bonds are a way of private companies and even the government to borrow money from the Stock exchange market and pay back the amount with an interest rate that is calculated every year. Although the rate of return may be lower than the stock market trading, but the risks of you losing your principal amount is much less.
2. Invest in legitimate retirement benefit schemes; this is another good way of saving up your money for retirement. This is dependant on your country. Here in Kenya we have the retirements benefit authority that exists by the virtue of an act in the constitution. In the public sector, employers are required to include an amount that is paid to the scheme every month in their employees’ salary. However even in the private sector, people can still invest their money with them. It is a good method of investment because you get tax cuts from this and also good rates of return when you claim back your money when you retire.
3. Start a business online; I don’t get tired of emphasizing this fact. An online business has many advantages including increased market audience and reduced operational costs. The economic recession has proven the fact that people still prefer to buy things online because of the reduced costs involved and extra services such as shipping and delivery to their doorstep. If you invest in an online business, it is likely to benefit you when you retire because of its dynamics and increasing popularity worldwide.

Other people recommend that you apply for social security if you are living in America or upgrade your skills. If you take the above steps, you will not need to do all this. Who wants to be 60 and going back to class or looking for employment anyway? I know I don’t. I hoped this information was of help, if not; feel free to write to me at cashincomes3@gmail.com. Have a nice day!