Category: Money Management

It is easy to say Making Money Online For Retirement Purpose is than getting it done.

I am sure a lot of people must be wondering, and worried whether they can sustain their retirement, especially when they outlive their expected lifespan.

Hence the importance of make money online for retirement purpose.

As I mentioned in my previous posts on retirement, and the need to get prepared for retirement.

One of the most important thing, we need to address - is to have continuous income during our retirement.

People in the oriental part of the World have the culture ingrained from long time ago, is to raise a family so that the sons or daughters will look after them, after they get old and retired.

It was the duties of the sons and daughters to look after the parents, however this type of thinking may not work in the modern world.

So, what can the old folks do, in the event when the children are not able to take care of them?

• I would suggest the children to teach their parents to be computer savvy, and
• learn some skills in online business, and
• start them on the right footing if they do not bother to take care of their parents in the future.

This is the least they can do to show their filial piety gratitude to their parent.

What do you do when you reach retirement age?

It will be good, if those who are reaching retirement age

• can start learning,
• how to make some money doing online business, and
• be financial independent, and
• Financial free during the retirement.

What Can A Retiree Do In Online Business To Be Financial Free?

There are so many ways a person can achieve financial freedom, especially using the technology available now on internet, so in a way, the retiree nowadays are more fortunate than those who retired, said in the early 1970s

In the 1970s, when there was not internet, and to have passive income, a person might have to engage in some business and made sure the business would bring him good income in his retirement.

In the modern age, with the readily available internet, and the advancement of technology, it is easier for anyone to make a living online, especially for those who want to retire and not to worry about money.

There are so many avenues to make money online, some people have been spending hours online in the social media nowadays, and if they can spend the  times in generating income, it will be better and good for retirement.

Among the most common methods being used are:

1. Setting up a store online selling physical goods/products.

2. Engaging in affiliate marketing earning affiliate commissions.

3. Using internet to do online trading of shares, forex and other financial instrument.

4. Contents creation and proofreading of contents.

5. Provide online training courses using experience and expertise gained before retirement.

What To Avoid When Trying To Do Internet Business Online.

A lot of people may think it is just setting up a website, and that is it, Money will come in to you.

People will eventually fall to prey of those scammers online, who prey on ignorance and naive of people, and I believe there are a lot of people, who have tried internet business but ended up being cheated of their hard-earned money.

Therefore, before you decide to embark on this course of action, it will be better for you to do a bit more research, and look at the reviews of whatever you come across.

Online Stock/share trading

Take for example, you have decided to do online stock trading, using the available software and platform, what do you need to do:

• I would suggest you really understand the software/platform provider,
• to be on the safe side, it will be better if you can go along with those platforms
• provided by the banks or stock brokers
• whom you may have been using to buy your stock or build up your investment portfolio.

Likewise, if you decide to get involved in forex trading or option, do understand the mechanism of it, and select the right platform for you to perform the necessary work.

There are a lot of people offering courses in how to make money online, and claimed to have ample success in doing so.

What do you encounter usually on enrolling for courses?

• Most of the time, after you have enrolled in the courses, and
• attended the courses which is normally conducted over the weekend,
• you suddenly find out you learn very little from the two days courses, and
• was informed by the seminar host that if you wanted to learn more,
• you needed to enroll in the more in depth courses they have available, and
• you recalled when you attended the briefing,
• they claimed they would reveal the secrets' method they used to achieve their success
• if you signed up for the two days courses!!!.

For affiliate marketing, there are quite a lot of affiliates program available, here again we have to really study, and find out which one really can get you good money, some claimed they pay well if you are able to promote their products.

Another business model people will use to make money online which the retirees may want to consider is the publication of e-book, since retirees may have quite a lot of times and rich wealth of experiences, you may want to start writing e book to share your experience on topics you may have encountered.

Sample of ebook 

What if you are not good at writing?

• You may want to get some ghost writers to write for you,
• Tell them what topics you want to talk about, and
• You vet and edit the work produced.
• Next get a graphic designer
• He will design your e book cover
• After that, publish your e book in Amazon or
• other platform which you think you may have a better audience.

You may want to sell your e book in Amazon Kindle Store,

What Will I Recommend To Start and Prepare for Internet Income For Retirement?

If you are not in a hurry, and have ample times to prepare for your retirement and if you wish to learn and enrich your knowledge about online business, I would strongly recommend you have a look at Wealthy Affiliate.

In this Wealthy Affiliate community, if you really follow the training outlined in the website, and actively participate in the discussion and posting questions, you will be surprised to learn that there are a lot of people in this community who are willing and readily available, to share their experience and knowledge on making a success in online internet business.

If you have any questions or wish to share your experience on this topic.

Please feel free to leave your comments and questions and your experience in the feedback space below.

I would be glad to get back to you and thank you for your feedback.

Every time when we talk about retirement, it is important that we touch on Guides On Managing Retirement Money.

First of all, we need to prepare and save well in our early working life, If we want to have  a healthy and sustainable retirement, otherwise, we will face a lot of money issues in our retirement.

The main challenge in managing retirement money is:

How do we manage our retirement money when we retire?

What happen if we are ill prepared?

• If we have not prepared well in our earlier working life,
• Not investing well our money, and
• Did not set aside enough for our retirement,
• We will face question of whether we have enough in our bank to last for our retirement,

Assuming we are retiring at the age of 60 and the average life expectancy is 85. which mean we will have to make sure we have enough savings to last 25 years of retirement life.

1. To Determine and Allocate How Much Is Required For Retirement.

As you can see, with the life expectancy of 85 years, furthermore with at least 25 years to live in retirement, obviously we have to plan for this next phase of life.

what is needed by a retiree?

• to assess if how much he and his life partner spend in their normal daily life and
• how much they expect to spend in the retiring years ahead.

If we can maintain a record of our daily spending and summarize monthly expenses, naturally this will help in our planning for our retirement.

2. Ensure Flexibility In Our Planning. 

A financial plan must be able to adjust in accordance with the situation,  and the need when necessary.

In general,  if  we do not have a flexible financial plan, we will encounter difficulty subsequently, and frustration later on, especially when we are faced with some situation and realize the plan does not work.

Accordingly some of us may just give up.

To put it simply, if we have ensured we can adjust the plan accordingly, obviously we will be able to move on and continue our enjoyment of retirement.

The main reason to have a flexible financial planning is to adjust the daily spending in retirement, and the cash requirement as time go on in our retirement.

3. Must Have Some Cash Surplus Or Cushion for managing retirement money

Since we are not able to control the return on our investment for the cash we have had for our retirement.

It could be  due to the volatile market condition.

Supposing we invest our retirement fund in certain market, and hope for good return, even the best portfolio manager may not be able to generate the kind of returns we desire.

Therefore, we must have a cash surplus to cushion our expenses for at least 5 to 8 years of our living expenses, managing our daily expenses.

At the same time ensuring the return on investment, which is pretty much depending on how much risk we are willing to take.

Once we establish the level of cash surplus cushion we are comfortable with, we can plan accordingly

• in term of our investment and
• adjust the portfolio accordingly.

4. Allocation Of Cash Reserve in managing retirement money.

When we retire, we must allocate our cash reserve into three main categories, mainly:

1. Short term requirement.
2. Medium term requirement.
3. Long term requirement.

A. Short Term Requirement.

The short term planning requires us:

• to set aside the cash, which we need in our immediate and short term use,
• hence the amount of liquid cash we place to generate return will be very competitive, and
• we need to shop around for a good return.

B. Medium Term Requirement.

The medium term requirement is:

• to set aside our cash requirement within the 6th year to 10 years and
• we must plan for the return for this cash
• to ensure it generates enough return for our use from 6ht year onward

C. Long Term Requirement.

Since this is the long term cash requirement, which we will set aside beyond the 10th years, which we only touch the reserve on the 11th year.

Since it is a long term requirement, we can take a more moderate investment risk on this cash.

5. Investment Portfolio Mix : Income vs Risk.

Normally for people who have low investment risk, they will prefer to just put the money in the bank as fixed deposit and collect fixed deposit income, this may be a good money management if the bank interest rate is high as in the early 1980s.

In this low bank interest environment, it is not a very good way to manage the fund for retirement, as the interest generated may not be enough for our retirement needs.

We may have to consider investment:

• in government bond, which offer a better rate than the bank deposit interest, and
• also allocate our portfolio and investment mix in accordance with our planning.

Assets allocation for retirement involves a very detailed study, and we may have to engage a professional to discuss and plan with them, on the needs and how best to allocate the funds for investment,  ultimately we can generate the type of returns we are looking for.

6. Shall We Invest In Stocks?

The fund which we are not going to dip into for a number of years, can be considered as a mix of equity and fixed income investment.

The fixed income portion is to act as the cushion, and some sort of safety nest in the volatile equity market.

If we can engage a good fund manager to help to invest our long term fund with high quality, dividend paying equity and some other high quality instrument in the financial and capital market, this will be quite an ideal situation.

7. Consolidate our investment and income streams.

When we have done all our three steps of cash allocation, and investment based on our risk adverse profile.

We have to take stock of our income, and thereafter, to determine how to shift and re balance our investment portfolio.

As I mentioned earlier, we need to have a flexible plan above all,  this is one of the method to ensure all our investment's income are able to generate the returns we are aiming for eventually.

What are we aiming for ?

We have to ensure

• a reasonable growth of our investment, and
• do not try to outperform and
• aim for some unrealistic investment goal and
• ended up taking unnecessary risk on our investment.

Once we are comfortable with the rate of returns we are achieving for our three investment funds, generally speaking we should be able to live out our retirement in a worried free and sustainable life style we are looking for finally.

For those who are eager to learn more about how to manage retirement money, and if you do not want to engage a professional, perhaps you may like to find some books to read up, these books are readily available at Amazon.

If you have any questions or suggestion, please feel free to leave your comments and suggestion below.

I will be more than happy to answer and help out whatever way I can.