Retirement can be defined as the time of life when one chooses to permanently leave the workforce behind. The traditional age for retirement in Nigeria is 60 years or after 35 years at work, while in other developed countries like the United States, the traditional age for retirement is 65 years, it becomes vital for an individual to make plans if one wants to live successfully after retirement.
Invest in income-generating assets
The definition of an income-producing asset is an investment that generates consistent, recurring revenue, cash flow, or income over time.
Cash flow assets are not only a resource for experienced investors, but also for anyone who wishes to make money while sleeping.
With proper insight and planning and some money, anyone can earn passive income, examples of income-generating assets include.
I) Online businesses
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One of the most popular and profitable ways to invest is to start a business online. Although online businesses may require a lot of work upfront the income potential is unlimited. Online businesses include blogs and e-commerce stores, e-commerce stores on places like Shopify or Big-commerce, or even selling on eBay or Amazon.
It may take up to 2 years to see real progress, but over time, you could invest less and less time and still make a profit.
Stocks are amazing income-generating assets; they can be a steady source for retiring successfully at the age of 60-65. In particular, investing in dividends, stocks can be a predictable income source. They require little work if any and can help you establish a good revenue stream. One can acquire dividends stocks in large established companies in oil and gas, financial services, health care, etc.
III) Saving accounts
Yes, savings accounts, one of the first assets anyone should acquire whether one is planning on retiring or not is a savings account, despite low-interest rate, most banks offer around 1% interest, one can still earn a decent income from this asset, for higher interest rate one should consider online savings account options.
Farmland is among the best income-
Generating assets for several reasons. Unlike some other investment types, farmland does not experience the same level of volatility. Farmland has a low relationship with the stock market because it provides a necessary resource: food. As a result of this, the demand for farmland has been relatively consistent throughout history.
Investors interested in benefiting from this asset can take one of two available approaches.
First, you can directly purchase the land and lease it to a farming company. This strategy will require lots of findings to ensure the land is in the right place and have a consistent renter.
Another approach is by investing in a REIT or crowdsourcing platform that focuses on farming and farmland. Keep in mind that you will want to make findings of these companies before investing, as there may be fees associated that could undermine your income potential.
Live below your means
Living below your means isn’t just about saving money and cutting costs, it also requires taking control of your money instead of your money controlling you if one wants to retire at the age of 60-65.
A good rule is to live at least 15% less than what you earn, here are tips for living below your means without feeling like you are missing out.
I) Plan your expenses
It feels empowering assigning a job for every penny you spend. The popular 50/30/20 divides money into categories such as needs, wants, and saving.
II) Save immediately you earn
Divert money from each earning before you’re tempted into spending; this is where the savings account we talked about earlier comes in handy. Once you start it, it becomes painless to make deductions.
III) Pay yourself
Once you finish paying off a debt use utilized in purchasing that car or starting or buying that house, continue paying but this time to yourself, accumulate the money in your interest-bearing savings account. The next time you want to purchase something you can pay cash and feel the opposite of deprived.
IV) Live off one income
Remember we talked about investing in income-generating assets earlier; well do not spend the money you generate from these income-generating assets. Live off your active job and save the money you make from your assets. Earmark the profits/dividends for maximizing retirement savings in further investments if you want to retire successfully at age 60-65.
Have diverse interests For Retirement Purpose
You’re sorted financially now, but sitting at home watching reruns of sitcoms on Television will not bring about fulfillment in retirement. The happiest retirees know how to explore, play and travel; it might be hiking or biking, joining a book club, or volunteering for a good course.
The most successful retirees know how to explore their interests and keep themselves busy. The most important thing is that you’re passionate about what you do. A lot of retirees come out of retirement due to idleness but one cannot work forever, it isn’t humanly possible so an individual must find ways to maximize his time after retirement.
Take care of your health
The healthiest retirees are often the happiest, you don’t need to wait till you’re in your 60s to take measures to ensure you remain healthy, although genetics and external factors play a role in any individual’s health, you can take precautions to reduce health risks by eating healthy and also exercising.
You don’t need to start a strict diet just pay attention to what you eat, neither do you need to make the gym your home, just create time to exercise regularly if you want to remain healthy post-retirement.
Stay close to your kids but not too close
Research proves that retirees are happier when they live close to one or maybe two of their adult kids, but it’s important they don’t spend their money on their kids, it is important their kids are financially independent and “living their lives” Instead of relying on their parents for money which would lead to the retiree feeling less happy in retirement.