One of the life's great milestones is retirement. Many of us are saving up for retirement, doing our best to build up a nest egg that can get us through retirement, and provide the lifestyle we want.
If you want to be truly ready for retirement, one of the best things you can do is make sure you have built up plenty of assets. And you want to reduce your liabilities as well.
Build Financial Assets
If you are interested in financial freedom, you need to make it a priority to build up your financial assets. This means that you focus on the activities traditionally associated with improving your nest egg. For many people, this means investing. You can use your tax-advantaged retirement plan to maximize your ability to build assets and save for retirement. You can also include other investments, making use of dividend stocks, and the DRIPs that go with them.
Don't forget that passive income can also be a great financial asset. Creating passive income streams can help you so that you aren't so dependent on your investment portfolio performance. The right income streams can be a huge help during retirement, and provide you with assets. Many people also consider their homes assets. If you can add value to your home or other property, that becomes an asset you can tap during retirement.
Build Personal Assets
A successful retirement requires more than just adequate financial assets. You also need to build your personal assets. What will you do while you are retired? You need a purpose to help you get going in the morning, as well as add value to your life. A part-time job, or a hobby, can really help fill the hours and give you a sense of accomplishment. On top of that, you can enhance your retired life with friends and relatives. Develop relationships now that can be carried on in retirement. You'll enjoy social interaction, and find yourself glad to be retired.
Your health is another important personal asset. Take care of yourself now, and you will be glad for it later. Make sure to eat properly, and engage in physical activities. Better health also usually means that you spend less on health care during retirement. If you make a point to develop healthy habits, you will most likely be in better condition to enjoy your retirement years.
Reduce Your Liabilities
While you are building your assets, don't forget to reduce your liabilities. These obligations can drain your wealth, and reduce your ability to retire in comfort. Make efforts to reduce your debt, and to limit your recurring expenses. That way, when you retire, there will be fewer demands on your income, and you will be less worried.
It also helps to reduce your personal liabilities. Distance yourself from negative people who drag you down. Work on eradicating personal habits that are holding you back. Replace bad habits with good habits, and you will feel better about yourself and your situation. When you have fewer financial obligations, and you surround yourself with people and things that uplift you, your retirement is much more likely to be the success you want it to be.
Tie the Money Knot says
Getting rid of liabilities, or better yet – not ‘acquiring’ them – is very important to keep in mind. Life is better without the burden of being encumbered by debt, and the accompanying stress! This, of course, in addition to the clear impact this can have on your actual net worth.
At this point in the economy it might be hard to decide which areas you should invest your money in to acquire such assets. I think I’ll wait until a time when the markets are more stable and foreseeable growth is on the horizon. But it is true that without building financial assets, it will be much more difficult to retire in the state that we all hope for.
Early Financial Freedom says
Nice post. Choosing a field that pays well, starting early to save, living BELOW your means regardless of income are some of the pillars that I believe would deliver a happy & healthy retirement.
Good read. It’s necessary to have a proper retirement plan since when you are young and just have got into your job. Moreover it’s essential to be debt or any other financial burden free if you are planning for a long term and secured financial future. Hence pay your bills and other dues within the given period of time in order to avoid the late fees, penalty and debt issues. Go for long term life insurance policies which would secure your future for a longer period and you would have a secured source of monetary support in case of emergencies. Go for a secured and permanent job that will provide you a stable source of income on an yearly basis. All these credentials can easily lead us to a hassle free retired life.
Monique Day says
Helpful post! Starting to save for retirement early is an easy first step that many young people can do. Of course living below your means is a smart way to live for any age group. By planning ahead and being fiscally responsible, anyone can have a happy life on their road to retirement.