Considering A Retirement Plan

After meeting up with my new financial planner and going ahead with another investment plan, he shared with me a retirement plan which I find really impressive! The retirement works in the way that we save a certain amount every month for the next twenty-five years or so (assuming our retirement age is sixty), after that there will be a monthly amount being disbursed for the next ten years, and then assuming we are still alive, after ten years the remaining amount will be disbursed out in one lump sum. If I can get income every month after I stop working, that is a good thing!

 

I decided to make a comparison, and called my current financial planner. He shared with me another retirement plan which I also find pretty good. How this other plan works is that again we save up for like twenty-five years, but from the second year onwards, we can get annual cashback if we opt to, until the end of the twenty-five years.

 

If we choose not to get annual cashback, we can choose to get the cashback anytime after the second year. So if we choose to take the cashback after five years, the accumulated amount will be disbursed. At the end of the twenty-five years, whatever remaining (if we did take out some), or whatever we put in (if we did not take out), would be disbursed out in one whole lump sum.

 

I find this a rather good plan too, because whereas the first one ties us for the next twenty-five years or so, the second plan allows the flexibility of taking out some cash in terms of need or emergency. But of course, the first one is better in the sense that it gives monthly disbursements after retirement, whereas the second one gives a whole lump sum straightaway, and once that is used up, that is the end.

 

Both plans are pretty good. Ideally, it would be great if I can get both. But right now, with my studies that will hopefully finish by next year, I am a bit tied up with liquid assets as I need to put aside for my course fees, and other things, as well. Perhaps in early next year when I can foresee I will not have that many obligations, I can take up both plans before my next birthday then I do not need to pay more.

 

Hopefully I can cover my retirement too, so in the event I am all alone and die alone, at least I know I can be self-sufficient and not depend on anyone to take care of me!