facebook-icon instagram-icon twitter-icon pinterest-icon google-plus-icon youtube-icon

How To Avoid The Biggest Retirement Mistake

How To Avoid The Biggest Retirement Mistake

When you’re in your 20s, you don’t really think about retirement. When you get to your 30s you start to think about it but because you’re employed, you think you’re covered.

It can be all too easy imagining what your life will be like sitting back and enjoying your golden years. However, have you thought about how you can avoid financial stress when you get to those years? To avoid unnecessary stress, you have to avoid making one of the biggest mistakes most retirees make. In a moment, I’ll tell you what the mistake is and how you can prevent it from affecting your retirement…

Don’t spend all your active income

According to Mark Ford, active income is the money you make from your hard work. This includes the income you generate from your business. In comparison to an active income, you can get from your retirement annuity or pension from your passive income. You can only increase your passive income by getting better returns on your investments. What you need to do is increase your active income by working more ad save. This is because when you retire, you’ll give up your active income unless you’re still earning from your business. This can have a negative effect:

The longer you go without an active income, the harder it is to be stress free

If you rely on your passive income, it will reduce your ability to make good investment decisions. We all dream of growing old wealthy, but if you look around, you can see it isn’t a reality for most people. To achieve the lifestyle of your dreams during your golden years, you need a very large retirement fund or pension. Therefore, to make this happen, you end up opting for riskier investments in the hope of gaining bigger financial rewards. Unfortunately, this has the potential to kill your retirement dreams. So, to avoid this, there’s one way you can take the pressure off your passive income – work.

Build more skills so you can work part-time once you retire

Working part-time during retirement can reduce financial stress. In fact, a good number of retirees find that working part-time makes them feel better about themselves too. Now this doesn’t mean slaving in an office full-time. There are a variety of different things you can do to generate an active income later in life. This could be doing some consulting based on skills you earned in your former employment. Or you could start an own online business doing something that you love. If you own a business, you can still play a part in running the company, while deegating most work to others.

When you generate an active income, you don’t only make more money, but you can stop worrying about digging too deep in your investments. This can help you enjoy your retirement free from financial stress.


Tags: , , , , , , ,

Leave a comment

Follow Us On Instagram

  • Say it with a Gift this Valentines Day! Read our blog post on www.liferetreat.co.za to see some of our Valentines Gift Ideas for Him & Her! 
#PURA #unique #luxury #wolf1834 #steinhart #virescent #swatch #muela #jbl #diamonds
  • Giveaway Time!!!! WIN an unconventional Valentines bouquet for your loved one.. Fettle & Frisson is giving away 4 bottles of your favourite epicene DAMASK 10ml roll on floral perfume 🌹 .
Simply like this post, follow @fettleandfrisson and tag your valentine in the comments! Have more than one? Tag them all ;)
  • Head over to @theoliostore page to enter!!! .

What Is Included:

1 x Herbal CBD from @theoliostore worth R550, A pair of Silver Bee Earrings from @kellyjayjewellery worth R400, A 1 Month Studio Membership from @liferetreatstudio worth R650, A @liferetreat_ Hamper worth R750, A Sheer Moisture Lip Tint from @naturallylovelycosmetics worth R270, A Copper Kitchen Festive Collection from @1701brand worth R550, A Box Of @oorah_pow Collagen Protein Bars worth R400, A Soy Candle and Essential Oil Roller from @luxbury_za worth R410, A Dreamy Cacao Lovers Pack from @soaringfreesuperfoods worth R420 and A @living_eco Eco Essentials Kit worth R590!

#olio #theoliostore #kellyjayjewellery #liferetreatstudio #liferetreat #naturallylovelycosmetics #mineralfusionsouthafrica #1701brand #oorahpow #luxbury #soaringfreesuperfoods #givebackfriday #livingeco

Life Retreat