Jakarta, CNBC Indonesia – The age of five is often associated as the age before retirement. But is there any guarantee that you are already established at that age?
When someone has a large income and abundant assets, living safely, comfortably, and quietly in old age is certainly not wishful thinking.
However, it’s a different story with people who struggle to pay off debts in old age because reducing their lifestyle at an unproductive age is certainly not an easy thing to do.
Based on an article written by Jen Glantz on Business Insider, Glantz interviewed financial planners who have successfully led their clients to become millionaires in their old age. From the results of these interviews, it was revealed that there are four ways that are not commonly used when collecting pension funds.
This advice comes from certified financial planner RJ Weiss. Weiss said that in order to retire with plenty of money, one thing you can do is not take on debt.
“This (not having debt) is very important, because someone who has no debt repayments can take greater risks in their investment,” Weiss said, as quoted by Business Insider.
The greater the debt repayments, the greater the financial burden that must be borne each month. That’s what makes it difficult for someone to invest.
Shop for assets that bring in money
Shopping that is often done by Weiss’s clients is shopping for assets that can bring in money, of course, even passive or active ones. As a result, income increases, assets grow, and financial independence will be much easier to achieve.
Weiss said people who retire with abundant assets will spend a lot of time building investment portfolios.
The assets referred to by Weiss also include assets in the form of businesses, both small and large scale.
Live from 50% of total income
This approach was popularized by Ronit Rogoszinski. This financial planner says that people who can live on half their income can save even more money for retirement.
“Frugal living doesn’t mean not having fun at all, it’s just that the fun activities you choose are of course according to your budget,” said Rogosznski.
Invest your money
Financial planner Faron Daugs says that if we don’t all want to raise a pension from “regular” investment instruments, then the best way to do this is to invest the profits from our investments.
“The main key to reinvestment is to be more disciplined in allocating funds to your investment assets,” said Daugs.
Enviable, These are 4 Ways to Get Rich in Old Age