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Making money is easier said than done.

Do we still need to make money when we retired?

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.

As I mentioned 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 used to 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 supposed to be 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 this case 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.

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 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 and 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 the times can be spent in generating income will be better and good for retirement.

Among the most common methods being used are:

1. Setting up a store online and sell physical goods/products.

2. Getting involved in affiliate marketing and earn some affiliate commission.

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.

A lot of people will eventually fall to prey of those scammers online who prey on ignorance and naiveness of people and I believe there are a lot of people who have tried internet business and 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.

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

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 

If you are not good at writing, you may want to get some ghost writers to write for you by telling them what topics you want to talk about and then you vet and edit the work produced. Then you get a graphic designer to help to design your e book cover and then publish your e book in Amazon or whatever platform which you think you may have a better audience.

Once you have done that, 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 and I would be glad to get back to you and thank you for your feedback.

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Every time when we talk about retirement, we will surely touch on the financial part of retirement.

If we have not prepared and saved well in our early working life to prepare for a healthy and sustainable retirement, we will face a lot of money issues in our retirement.

The main challenge is how to manage our retirement money when we retire.

If we have not prepared well in our earlier working life in investing well our money and setting 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.

With the life expectancy of 85 years and with at least 25 years to live in retirement, we have to plan for this next phase of life.

One of the things a retiree needs 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 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, if we do not have a flexible financial plan, we will encounter difficulty and frustration later on when we are faced with some situation and realize the plan does not work.

Some of us may just give up, actually if we have ensured we can adjust the plan accordingly, 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

Since we are not able to control the return on our investment for the cash we have had for our retirement due to the volatile market condition if 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 and 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.

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 Porfolio 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 so as to 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.

After 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 to determine how to shift and re balance our investment portfolio, as I mentioned earlier, we need to have a flexible plan, this is one of the method to ensure all our investment's income.

We have to ensure a reasonable growth of our investment and do not try to outperform and aim for some 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, we should be able to live out our retirement in a worried free and sustainable life style we are looking for.

For those who are eager to learn more about how to manage retirement money, and if you do not want to engage a professional, 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 and I will be more than happy to answer and help out whatever way I can.

 

 

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