Personal Money Management Expert - Banking, Money Management, Taxes, Insurance, Investing, Retirement Planning » Social Security and Pensions http://www.personalmoneymanagementexpert.com/blog Your Number One Source on Everything about Money Management Mon, 25 Aug 2008 14:22:10 +0000 http://wordpress.org/?v=2.2.2 en Dangerous thoughts on retirement: ‘Better late than never’ http://www.personalmoneymanagementexpert.com/blog/2008/04/30/dangerous-thoughts-on-retirement-%e2%80%98better-late-than-never%e2%80%99/ http://www.personalmoneymanagementexpert.com/blog/2008/04/30/dangerous-thoughts-on-retirement-%e2%80%98better-late-than-never%e2%80%99/#comments Wed, 30 Apr 2008 16:27:56 +0000 sam http://www.personalmoneymanagementexpert.com/blog/2008/04/30/dangerous-thoughts-on-retirement-%e2%80%98better-late-than-never%e2%80%99/ We all get pre-occupied by the rat race. Surely taking a few years off wouldn’t hurt my retirement plan. Or would it?

Anyone who wants to retire well needs to ask himself (1) how long do I expect to live and (2) how much time do I have before I retire?

The last thing we want is to run out of resources after we retire. We would rather bequeath what we have left rather than ask our children to feed us. That’s why the planning horizon is important. We need time to prepare.

Figure 1 in the gallery shows what happens when we have set aside P100,000 (for the lump-sum, just-in-case expenses) and then we add P50,000 each year to our retirement fund. Let’s assume that it generates a return of 5.0 percent per year. (more…)

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