Like all savings, adjusting your retirement investment plan should be done sooner rather than later.

A few weeks ago, while googling retirement systems in other countries, I saw this headline: Brazilian 100-year-old breaks record after 84 years at same company. Brazilian Walter Orthmann joined a company called Industrias Renaux on January 17, 1938 and 84 years later is still working there. I think the biggest achievement here is that at 100 years old, he is still active and alert and still loves to work. In the article I read, here is the advice he gives: “I don’t do much planning, nor do I worry much about tomorrow. All I care about is that tomorrow is another day in which I wake up, get up, exercise and go to work; you should be busy with the present, not the past or the future. The here and now is what matters.”

There’s a lot of news about this man that you can Google and learn more about, but it goes without saying that this kind of ‘retirement solution’ is not in the cards for the paid among us. Retirement is a scary thing. By the time wage earners reach that age, they have typically worked for close to 40 years. For most of them, their existence is more or less defined by their work routine. More importantly, their finances are determined by receiving that salary every month.

Except for a small number of people who are lucky enough to have an inflation-protected income – for example, rent or a government pension, or those who have generated extraordinary wealth during their working years – the specter of financial problems and impoverishment after retirement follow more. pensioners. Nowadays, life expectancy is long and most people have two or three decades of life left after retirement. A lot can happen during these long years. For example, although life expectancy has become long, the rise of chronic diseases has meant that ‘health life expectancy’ has become short, and many of us will face devastating medical bills at some point in the latter part of our lives.

This fear of the unknown—the specter of risk that comes with retirement—makes it a natural instinct to be conservative with your post-retirement investments. This is completely understandable. Once you stop earning, there is no plan B. If you make big losses on your investments, then that money is gone forever. You will not be able to earn more and make up for losses. This makes people extremely conservative in their outlook. A significant number will only trust bank deposits, sovereign schemes and perhaps.

This feels safe, but it actually isn’t. The problem is that your savings can face a sudden, difficult disaster, or it can face a long and gradual disaster. Like the proverbial frog in boiling water, the latter cannot be felt. Those facing this long and slow disaster don’t even know there was an alternative.

In fact, I have come to realize that some people choose this misfortune consciously. Why so? I’ve spent years explaining that post-retirement equity is a must to avoid this slow disaster. There are those who understand this very well and yet are so afraid of imminent disaster that they willingly choose it. This is the worst of all worlds and comes entirely from a lack of faith. This confidence is hard to earn and the only way to it is through knowledge and experience, along with real life examples. That’s the part I try to play in this publication, along with resources you can find online, including a very comprehensive set at Value Research Online. However, I must stress that like all savings, getting your investment plan in order after retirement is something that should be done sooner rather than later. It may be a slow disaster, but the years fly by and it doesn’t take long for the slow one to catch up.


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