Retirement is going to be one of the most exciting and fulfilling chapters of your life. It gives you the opportunity to explore new things, pursue other passions, and enjoy the fruits of your labor after years of managing your own business. To make the most of your retirement years, it is crucial to have a well-thought-out financial plan to pay for your necessities, leisure, and other expenses.
While your business may be a significant asset, relying solely on it for your retirement income can be risky. This is why it is important to have a diversified pool of funds that will help sustain your lifestyle when you reach this life stage. By then, you can spend more quality time with your family while having a more relaxed and enjoyable work environment.
This might be overwhelming to think about in your 30s, but if you want financial security when you retire, it is best to start planning it today. Doing so can help you make a roadmap to prepare you for the challenges of managing your business while saving up for your retirement fund. Here are some practical tips you can consider to secure a fund that will suit your retirement lifestyle:
1. Evaluate and plan. If you want to have a comfortable retirement, having a financial game plan is key. Try to compute the estimated retirement fund you need in order to sustain your lifestyle. Write down that figure in your journal and work on it. Assess if the current income you’re generating from your business would be enough for you to save for your retirement fund. Through this, you can evaluate if you need to expand your business further, invest in stocks, or look for other sources of income to secure your financial freedom.
2. Set realistic goals. As early as now, you have to identify your short-term and long-term goals. Do you plan to buy your own house or a car? How much will it cost to open more shops for your business? How much can you set aside for your insurance and investment plans? By doing so, you can lay out a detailed plan for achieving your personal and business goals while financially preparing for your retirement years.
3. Smart debt management. Being a businesswoman, making loans for your business means further growth and success. Making loans can be essential in one’s business, because it helps companies manage their operational cash flow. This is normal for any thriving entrepreneur, but you must take into account how long you will be able to pay off these loans. You also need to consider your debts from personal purchases and prioritize ticking them off your list. If possible, be debt-free when you finally decide to retire because your loans can easily drain your retirement fund.
4. Achieve financial security. While we can make a blueprint of the future we want to have, we cannot always control what lies ahead. Similarly, we don’t know how long our business can thrive in a world where change is the only thing constant. This is why it is important to be financially protected for any unforeseen financial mishap that can happen at any time. Consider getting AXA’s MyLifeChoice, an all-around insurance plan with an investment feature. This will help you achieve financial security while diversifying your investment portfolio for potential gains. Investing in stocks and mutual funds with the help of a fund manager, you can grow your savings and assets over time for your additional retirement fund.
While your business is your priority at this age, begin thinking about your retirement preparations in earnest as well. Doing so can help ensure financial stability when you're older, taking the time to start building a plan now can make all the difference in the long run. Remember that you can start with small steps by saving up for a retirement fund and getting an insurance and investment plan.
Know that you can game plan your way to a comfortable retirement with AXA’s MyLifeChoice. Contact an AXA financial advisor today for more information.