Getting old seems kinda scary and at 26 thinking about retirement seems like a far-fetched dream. But chances are, I’m going to grow old and I don’t believe my government is going to have enough resources to adequately provide for an ageing population.
Things were very different a few decades ago; you’d start at one job, work there for the majority of your life, the job would offer a great retirement package and you wouldn’t live as long as we do these days, so you wouldn’t need as much money… It’s not like that anymore and I’m self employed – so I am my retirement plan!
There was a quote I remember reading on my Science classroom at high school – If you fail to prepare, you’re preparing to fail – this is true with retirement too.
I have a little money in my Kiwisaver, but I am looking to have a self managed superannuation fund.
I’ve already shared my savings plan for the next year and part of that involves putting some money aside for my retirement. The $10,000 I’m intending to put in a managed fund is going to be a long term investment that I just leave to ride out.
So how much should you be saving for your retirement? The general agreement is: As much as you can.
The earlier you start, the less aggressive you need to be because you have time on your side.
My intention is to build up a number of assets that offer passive income streams, while increasing my net worth.
Some ways I intend to do this are:
Rental Property Ownership
I am very interested in setting up an AirBNB property somewhere in Europe in the next year or so. I would choose somewhere that has affordable housing prices, compared to New Zealand and automate the process as much as possible. Longer term, I would be interested in buying some rental properties in New Zealand or Australia and using those to generate passive income through rent and to reap the benefits of an increase in property value in time.
Pursuing Online Passive Ventures
Often online ventures that generate passive income require a lot of time dense investment in the beginning. Whether it’s writing an ebook that continues to sell long after you’ve written it or through selling affiliate products on your website. One of the downsides to online passive income ventures is that it is a fast-paced industry, so what worked 2 years ago might already be out of date.
I like the idea of managed funds that are invested in a few different areas because it will more easily ride out any increases or decreases. I am planning to get started in managed funds this year and have them be a large part of my retirement plan. In the next few years I might choose to withdraw my funds and then invest in a different strategy, but I’ll see how it all goes.
Do you have a retirement plan in place? Do you have a net worth that you are planning to achieve by the time you retire? Share in the comments below.