investing for retirement – 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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My Mom’s Investing in the Stock Market

My mother used to work as a clerk for a Chinese businessman in Binondo back in the early 70’s when she was still single. But she decided to stop working when she met my father until they got married in 1975. Given the very short time that she spent for working, she did not get to contribute that much for her Social Security.

Fast forward to 2012, my mother asked me if she could continue to contribute to SSS so that she could receive the pension when she reaches her retirement age. After giving her a computation on how much (little) she could get from SSS, I convinced her that she should not rely her retirement years from SSS alone.

In fact I told her that it would be better to allocate a portion of the money I’m giving her on a monthly basis and the profit she is getting from her small business of made-to-order delicacies to invest in the stock market.

And so she did in December 2012. Continue reading My Mom’s Investing in the Stock Market

Should You Rely Your Retirement on SSS/GSIS Pension Alone?

My grandfather died when I just entered my first year in college. That was a year after he persuaded me to take the scholarship exams entitled to all residents and high school graduates of my mother’s hometown in Pampanga. He was very patient that he even accompanied me throughout the application process. He even waited outside the examination venue until I finished.

The reason? I didn’t know much about the Kapampangan dialect except for “mekeni”, “nanung lagyu mu?”, “ebun”, “masanting”, “maragul”, “manyaman”, and…never mind. 😛 He had to be there for me to be my translator. To speak the dialect was supposed to be a proof that I am a legitimate half-Kapampangan. A requirement to become eligible for the scholarship. But technically and biologically-speaking, I’m a Batangpangan (Batangueño–Kapampangan) born in Manila.

To cut the story short, I passed the scholarship exam and went on to finish college with top honors. I placed 46th…among 55 students. 😛 And I owed everything both to my parents and to my departed grandfather for believing that I could get the scholarship and finish it. Continue reading Should You Rely Your Retirement on SSS/GSIS Pension Alone?