Insurance – Page 11 – Rock To Riches

5 Foolproof Ways to Boost Your Retirement Savings

Everyone looks forward to a retirement where they can relax, indulge in their hobbies and favorite pastimes, without the need to worry about getting up for work! In order to enjoy your retirement it is essential to plan for it now and build your retirement savings as quickly as possible.

The following methods will ensure you are comfortable in your retirement:

1. Review your current budget

In order to save more you must be able and willing to put more funds into your retirement accounts. The first step in this is to take a look at your current expenditure and where this can be adjusted to release more funds.

Automatic insurance renewal can inflate your annual premiums, unneeded or excessive phone contracts can drain your funds and even eating out regularly can limit you savings ability.

As part of your review, create a realistic budget which allows you to save for retirement and build an emergency fund whilst still enjoying your daily life.

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2. Boost your current income

If the above exercise leaves you scratching your head, unable to locate the additional funds you need to create a retirement fund then you may need to consider earning more. You may be able to obtain a pay rise or work more hours in your current job, or you may need to look for a second job.

Alternatively you can start your own online business! A part time job can also be a useful tool after you have retired. It will boost your income and provide you with both mental and physical stimulation; something which is important for older people.

An important part of this is to check that you are obtaining all the benefits to which you are entitled; these can make a big difference to your lifestyle and savings capabilities.

3. Automation and vision

It is advisable to automate as many of your retirement savings contributions as possible. In some cases this will mean you do not even notice the money having gone; you will certainly not forget to make your monthly contribution!

In order to stick to this plan; particularly when funds are tight it is important to have visual aids in strategic places around your home and even your workplace. This will remind you of what you are saving for and ensure you stay committed.

4. Additional earnings

If you are lucky enough to get a pay rise, bonus or a small inheritance then you should invest this immediately. You do not need it to maintain your current standard of living!

Wherever possible you should seek to maximize your payments to your retirement accounts. The government are no offering investments via PAG-IBIG that are tax-free; mutual fund investments are tax-free as well if you don’t redeem in at least 5 years; if you can afford these then commit the money, you will benefit in the long term.

5. Stocks

The stock market offers an opportunity to boost your retirement income significantly; it can also be a high risk strategy! It is essential to take professional advice and study the market before investing anything; you need to be certain you know what you are doing. The closer you are to retirement and the more funds you need to build the more risky the approach will need to be.

Another option is to purchase an annuity with the funds you have available; there are two main types of these:
The immediate annuity will pay you a lump sum and then a monthly payment for life.
The deferred-income annuity does not provide a lump sum option, it will, however, give you a larger lump sum every month for life, starting from a pre-determined age.

Whatever your situation there is a way to boost your retirement savings and your income in retirement; the important thing is to start now.

Don’t do it on your own if you’re not a financial expert, and look for assistance. An advisor will know exactly what to do to help you boost your retirement savings. With these simple but effective tips you’ll live the most comfortable life by the time you turn 60.

Rock your way to abundance!

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Should You Change Your Investment Strategy?

Being in a comfort zone is not an assurance that you will succeed forever. In the same manner, doing the same strategy in your wealth-building all your life will not guarantee that you will achieve your goals.

Why? Because things change. Your relationship status change. From being single you either get married or be in a domestic relationship. If things get worse, you may fall under the category of “It’s Complicated” or “Separated/Divorced”.

Along the way, you may also lose your job, shut down your business, or get near the golden years of your life.

Other than these (or because of these), your financial status change as well. These big life changes will most likely need adjustments on your finances.

Here are some of the most life-changing events that may happen to you sooner or later and are reasons for you to re-align and reboot your investment strategies.

1) You are going to be a father or a mother.

That’s because you will need to consider certain variables such as medications and supplements, medical consultations for mother and child, delivery of your baby, healthcare, crib, diapers, food, nanny services, among others.

In my case, we had to leave the country in order to earn more than what we could back home.

According to iMoney Philippines, in this day and age, raising a child, in the best environment, can cost as much as P500,000 a year. The average income Filipinos will, of course, have to adjust accordingly.

It’s best that you re-calculate your regular investing amount and make sure you add your child and spouse in your list of financial goals.

2) You lost your job or you just want to find a new one.

Anyone’s employment situation will surely change anytime. Everyone should be ready, especially our OFW’s who are living on per contract job stints.

Your investing schedule will definitely need an overhaul should become unemployed. While looking for a new job, make sure to live way below than what you used to.

Also, do not invest your severance pay/end-of-service benefits in high-risk placements such as the stock market. Keep these as part of your emergency cash instead.

Once you found a new lease of life in another company, you may then go back to your normal investing schedule.

Whatever your financial goals are, you should determine whether your previous long term goals have now become medium-term or short-term goals.

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3) Your kids have grown up and you are now alone.

Time will come when your children finally grow into young adults. He or she will go to college and find their dream jobs or settle down on their own.

This may bring smiles on your face but don’t get too confident. You should remember that these are usually the struggling years of a young adult.

You may allow your kids to work while studying but this will never be enough. You may need to take out loans or use up your emergency fund if there are expenses not covered by your investments intended for his or her tuition fees alone.

But always remember, never ever touch the money which is intended for use by you or your spouse during your retirement years just to pay up for your growing child’s school needs.

You can instead help them out find other ways to address these. But not from your retirement fund.

4) You now belong to the S-Gen or the Sandwich Generation.

You may be one of the many Filipinos supporting your aging parents or even your grannies while also taking care of your own children.

If you are currently in this situation, then you are now a lucky member of the Sandwich Generation Club. This is a very crucial time to build more emergency fund. This is a time when cash is really king.

If your aging parents have bank and investment accounts, it’s best that you discuss about these with your other siblings and agree on what to do with these while they are still healthy.

If they have properties under their names, it is now the right time to find out who their estate planner is.

5) You are nearing your golden years.

Your long term goals may have started to close in. Now is also the right time to for you to have some fine-tuning of your investment strategies.

There should be no more close monitoring of the stock prices or currency rates. You may need to slow down and protect yourself from the volatility of the markets and go instead for lesser-risk investment vehicles such as balanced funds or other fixed income instruments.

You may also need to check on the possible benefits that you can get from your insurance packages and SSS or GSIS pension plans.

While keeping track of your money, do not forget that you should also enjoy the rewards of preparing earlier in your life so that you can have the best retirement years possible.

Rock your way to abundance!

#moneyliferocknroll

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Top 5 Reasons Why You Need To Get Health Insurance Even While You’re Young

Most young and active people are very skeptical when it comes to getting health insurance, accident coverage, or life insurance. They will often say: “Why spend on something I don’t need now when I can very well use my money to buy the latest gadget, take a trip to Boracay, or get that fashionable bag showcased recently at the runway?”

While, admittedly, these are some great things to spend your money on, getting health insurance is more an investment rather than an expenditure. Here are our top five (5) reasons why you need to get health insurance while you are still young and healthy.

1) You’ll never know when you will get a critical illness.

You may be young, feeling well and believing that you are healthy right now.

But I’m sure you’ve heard of that relative, or friend, or friend-of-a-friend who had a heart attack, got a stroke, or was diagnosed with cancer in their late-20s or early-30s.

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The hard fact is, even young and active people CAN get a critical illness. It was a reality that actress Camille Prats had to deal with when she got widowed at such a young age (read about her story here or watch her interview here).

You can always think to yourself that “it WON’T happen to me.” Then again, those who got sick at such a young age thought the same thing.

2) “An ounce of prevention is better than a pound of cure.”

You can be exercising, going to the gym regularly, running or jogging every day, attending yoga or pilates classes, joining marathons, and even be into multi-sport disciplines, but you will still need preventive care and check-ups like endoscopies, X-rays, mammograms, etc.

It is always best to identify health problems earlier, when treatments are cheaper and easier. This makes it possible for you or your loved ones to be treated sooner in case you get diagnosed with a critical illness.

In the same manner, getting health insurance is prevention from the financial stress that is related to getting a critical illness. I’m sure you know a relative or friend who got sick and have become worse because they could no longer afford to pay for their hospital bills. Perhaps they had to sell their house or their car. Borrow tons of money. Or perhaps their kids had to stop schooling.

Spare yourself from being another “burden” by getting a health insurance soon.

3) Health Insurance is more than just emergency care.

Uninsured people receive less medical care, preventive care, and follow-up care as well.

Health insurance will not only cover emergency care but also follow-up care like rehab care which is not usually covered by Philhealth or SSS benefits.

Rehab care is very important to get back the full functions of our bodies from before the sickness or accident.

Having health insurance will ensure that you will be able to receive the best care after being confined in a hospital.

4) Investing in health insurance is investing in financial health. And it comes out cheaper too.

We may not realize it but investing in health insurance is investing in our financial health as well.

If you are an investment-savvy and intelligent entrepreneur you will always think about protecting not only your savings and your investments but yourself and your family as well.

It is not enough that you have “ample” cash on hand or in the bank or in your stock market portfolio especially if you are still in the stages of building your financial wealth.

Always remember that a sudden and serious illness can lead to catastrophic costs and financial ruin.

Once you become ill and you don’t have health insurance, your last resort may be to liquidate your financial investments and this will disrupt your quest to achieve your investing goals.

And getting it while young means lower premiums. Coverage becomes more expensive as you start aging and start feeling the aches and pains in your body. Think of it as an “early bird” discount J

5) It’s an investment that will save lives.

Having health insurance will also avoid having any health condition to worsen. What if your family relies heavily on you as the breadwinner?

More than that, living longer enough for your loved ones is more valuable than any other investments or wealth that you can keep and enjoy in this world.

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Health insurance is very important to us and our family’s lives. We may not need it now just because we believe ourselves to be in the best of health, but that is actually the best time to prepare. You do not fix a leaking roof when you are in the middle of a typhoon.

Wondering how to get a health insurance even if you are living away from the city? Check out www.axaion.com.ph and get a basic health insurance plan inside the comforts of your own home and using your computer.

Aside from health insurance AXA iON also offers a selection of Savings, Academic, and Life Exentials.

Rock your way to abundance!

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