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Writing a blog post today after a few weeks. Hopefully Covid-19 chaos settles down now and we are back to our normal lives soon. Thanks to the great work done by the Australian government who acknowledged that there is a problem and the plan to come out of the problem.
Being in the lockdown for the last nearly 8 weeks, made me think that it nearly resembles our retirement life. When we retire at the age of 65/67, we will have a similar life…..
- We will still have to pay the bills. In the lockdown, we luckily had our jobs to pay the bills. In the retirement life, when we will be out of jobs, still we will need a constant source of income (from savings, super, or other means) to pay the bills. Therefore, investments and planning for retirement with a constant source of income should be on the top of our mind. Take out time to talk to licensed professionals to have strategy for it.
- In the lockdown, the share market tumbled suddenly, and all gains were wiped out. This means in our retirement life; we need diversified source of income. The current time is the time to talk to our financial planner, accountant, and other licensed professionals on how to diversify and not to put all of our eggs in a single basket so that during retirement phase we are not dependent on a single source which may get wiped out if a sudden pandemic strikes at that time.
- Relationships, we need to invest in relationships so that we have a partner, kids, and friends to talk to in our retirement life. It is not easy to live in isolation. Covid-19 has taught us to put brakes on our selfish fast paced life and rethink on a few priorities. It has taught us to be resilient, forgiving, invest and maintain the relationships with other people. We will surely need family and friends around us in our retirement life.
- Covid-19 has taught us to differentiate between essentials and non-essentials. We will always need essentials in our life. It has made us to think what is essential and from where will the money come to pay for the essential.
- Covid-19 has taught us the value of savings. If you have savings in your bank account, you can sail through toughest pandemic in your life. Money in your bank account will give you more peace of mind than the luxury items in your life.
- Covid-19 has taught us to spend wisely and save money.
- Health: We need to invest in health. In retirement life, the single most valuable asset will be health. We must plan now itself and invest in our health. With so much time at our disposable during lockdown, we can have a schedule to include activities which relate to health and which give us a healthy retirement life.
- Covid-19 has taught us to do our job and work sincerely. We might sometimes take it for granted but it can just go away in a matter of seconds.
- Covid-19 has taught us to have a hobby. In retirement life, we will not have a full-time job, so we will need a hobby to pass time in a healthy manner. The lockdown is the time to develop a hobby which we can take to our retirement life.
- Covid-19 has taught us to stop, rethink and cleanse our body and soul, plan better, plan for worst case scenario also, take all the risks into consideration, risk mitigation, risk contingency and plan better for the life ahead.