When the door of happiness closes, another opens, but often times we look so long at the closed door that we don’t see the one which has been opened for us.
Because most of us take wealth as a relative term, there never seem to be enough money to do the things we want to do or buy the things we want to own. Even millionaires wants to get more money. In fact, the more money one has, the more money seems to be needed. So you find the millionaires usually works harder and wants to make their millions work harder for them. So we cannot measure Financial Wellness by how much money one has – it is all relative. Singaporeans used to use the 5Cs to measure success. (5Cs being cash, credit cards, car, club and condo). But many 5Cs owners will tell you they are not rich and they are slogging in their career to try to get to 5Bs. Where does this put the seniors or retirees in terms of Financial Wellness ?
Retirees do not have an active income which they used to receive as work wages. Most will have to depend on their nest-eggs which they saved to provide for their retirements. However, the biggest concern for us is will the nest-egg last through the entire retirement period. Now there is one known limitation in that the nest-eggs are being depleted and not built-up plus one unknown in how long will one live. Add to the otherwise happy problem of longevity, we worry about the effect of inflation on our nest-eggs. To add to the concern, even if we can plan for the routine or expected expenditures but how to cater to unforeseen illness which translates to escalating health costs ?
If you are facing the same dilemma described above, there are both a defensive and an offensive strategy to combat the need to ‘stretch your dollar’. The defensive approach calls for spending less than anticipated while the offensive approach involves adding to your nest-eggs.
Each person’s circumstance is unique, so it is not possible for a standard plan or strategy to fit all. The best Financial Advisors can do is to try to tailor a special recommendation for you. Even then, it depends on how wide is the Financial Advisor’s expertise, whether , it be in banking (retail, corporate or investment banking etc.); insurance (life, endowment or medical etc.) or investment (bonds, equities or commodities etc.). There is no substitute to gaining knowledge for yourself so you can tell what is a safe investment vs what is risky. REVERSE co-op will run seminars and classes to educate our members how not to lose your nest-eggs or hard-earn savings. But you need to attend the classes and participate/share on seniors’ experience on how to protect yourself. Retirees have a entirely different monetary risk profile so don’t spend money to learn ‘how to get rich quick’ or ‘double your money in 7 days’. Such outside seminars are for the young and aggressive investors who have the capacity to loss some to gain some. Speak with contemporaries who are experienced and skilled in the financial area and pool resources to get a fair deal from the financial institutions.
Footnote : One of the fundamental pillars of REVERSE Co-op to enable those seniors who desire to earn some active income to do so. REVERSE itself will do business to generate profits. And the profits will be another form of income for members when they are returned to members as dividends.