Mission Possible: Retirement
|Image source: Pivot Point Advisors|
That’s what Randell Tiongson, finance coach and author of “No Nonsense Personal Finance: A Step By Step Guide,” made me believe during last Saturday’s seminar.*
|My father, the late Efren Cortez, and my mother, Mely.|
I still give a small amount of money to my mother time and again but, thankfully, I am not part of a “sandwich generation”** because my father prepared for his retirement, though he did not get to enjoy it.
|"As the children provide for their parents, they also provide for their own children at the same time." That's how Randell Tiongson defined what a "sandwich generation" is.|
Image source: http://womenmisbehavin.com/
During the seminar, I realized that the best time to prepare for retirement was yesterday. But the next best time to prepare is now.
However, five years are too short a period of time to prepare for investment. According to Tiongson, “Time is your greatest asset. Make the most of it. For a 20-year retirement, start planning 20 years before retirement age.” Time could work for us or against us depending on whether we start early or we start late. Actually, we can never start too early. The earlier we prepare for retirement, the better. But, we can start too late.
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Tiongson clarified, “There’s no such thing as ‘the best investment.’” One must factor in the economic cycle. For example, “Buying stocks are good when the economy is growing.” He also reminded us that a high return of investment equals high risk while a low return of investment equals low risk. It really depends on our risk tolerance. Whatever investment, what’s important is that I start with whatever I can invest.
|Image source: AIChE|
My take? To retire comfortably is not mission impossible.
* Thanks, Randell Tiongson and Luis Magalong of Whiteboard, for the free tickets to the “No Nonsense Personal Finance” seminar.
** “As the children provide for their parents, they also provide for their own children at the same time. … This sandwich generation will not have enough set aside for their golden years, and they themselves will be taken [cared] of by their grown children thereby participating in an endless and vicious cycle we now call as Filipino Financial Planning.” (From page 6 of Tiongson’s “No Nonsense Personal Finance.” To know more, read my previous blog post, “Money, Money, Money.”)