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In case you have not heard, happiness is a U shaped curve (see below and yes i am no Michelangelo) according to the findings of scientist. The basic idea is that you are most stressed and unhappy in the early stages of your life. This includes growing, studying for exams, first job, the stress and uncertainty of your career, courtship and marriage. Then life continues with the financing of your first property, supporting children and their education. You will start feel happier when you are approaching middle age where your career is almost over or perhaps one come to the realisation that all other aspirations is no longer within reach. With that, all the uncertainty and pursuit is gone as one starts to accept their ‘destiny’. With that, you will start to manage your expectation and the result is a happier you. Then you will start to look for meaning elsewhere or fulfillment. That is the whole basis of happiness is a U shaped curve theory.
Many in the mid-life will fall under this category. However, not everyone is in the fortunately position to be more concern about finding meaning than putting food on the table. Not everyone country has a cradle to grave system when pension is sufficient to take care of you after slogging your whole life. Thus it is important to get our finance right. This topic is of great interest to me too as i really do not want to be worried about money or job especially at this vulnerable age. The same level of income will be rather difficult to find if one were to lose his or her job at this stage. I always believe that we should try to make our money work as hard as possible during our productive years. That is the money generation and accumulation period during our life time.
I am approaching financing my retirement the following ways:
- Properties
- High dividend stocks and shares
- CPF Related
- CPF life
- SRS
- Insurance products
- Cash
The time period is also important as the highest risk is when we enter the 55 years age zone. Hopefully i can be financially free by then. Meaning i would have fully repay the mortgage on my home and with passive income coming in on a monthly or quarterly basis. If i am fortunately enough to live till 65, then this should be rather comfortable where all the insurance or CPF payout will be kicking in. Hopefully i will still be healthy to be enjoying it. The biggest gap is from 55-65 years old and that is where my focus is to generate enough returns for this period. I will share more how i plan to reach this goal in the next few postings.
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