Friday, September 24, 2010

Easy Retirement

This is an extract of what I read in today's newspaper. More and more people start to carry this type of alternative concepts about retirement especially in this 21st century. You can't say its wrong. As a matter of fact, its a rather SMART way to go. But lie within is a huge hidden risk.

The titles in above newspaper read:
  1. you don't need much during retirement, coz your liability has reduced
  2. living frugal is not hard, mentality is the key
  3. you don't need to prepare to retire ?
By the time you retire, you probably don't have any more house loan or car loan to serve. Your body does not allow you to earn that much anymore. Chicks don't get attracted even if you sit in a Porsche. The bigger house you live in the harder it is for you to take care of it. In short, many people plan to 'maintain' their CURRENT lifestyle when they play for their retirement. The fact is you WILL NOT live the SAME lifestyle even if you are financially able to.

Basically the idea of save or accumulate enough so that you can STOP WORKING one day is solely base on the assumption you don't really LIKE what you are doing. You are just doing it for the sake of money or future retirement. Hence when you no longer need that money, you will want to stop working. But what if you REALLY LIKE what you do for a living ? Would you stop even if you have enough money for the rest of your life ? Be it Bill Gates, Warren Buffet or that happy old man by the street ... the answer is obvious. You will keep on doing what you like even if you retire or don't HAVE TO DO IT.

And if you have been doing something that you like for so long, the chance is that you don't really need to worry about living expenses since a long time ago. Incoming cash flow will persist and hence you don't really need to worry or prepare for a retirement. Coz you don't want to retire !!

What do you think about this easy retirement methods ? In contrast to the fundamental of save, invest and accumulate until you have enough to fight against the inflation etc. ?

Which do you prefer ?


ChampDog said...

Ultimately, I want both! :) But how many of us can find our true passion? So the easy retirement method is not really that easy, IMO.

Chong Kong Hui said...

If you can change your lifestyle NOW, it will be easy when you need to.

Why don't you try it NOW? Then you will SAVE more money to put aside for retirement and therefore you will have more money during retirement.

If you CAN'T do it now, chances are it is difficult when you retire.

Move out to lower cost of living place not an easy decision.

Spend time without spending money is not easy too. (play chess at park everyday?)

Mt. said...

good comment, ditto !

how about just love what you do now, would life be happier and easier ? :)