Are you self employed?
This article is for you. Ask any self employed entrepreneurs about retirement savings, you will be in for a rude shock; the curt answer:
“What retirement savings?”
Any real estate agent, life insurance advisers, free lancers, tutors etc. Many do not have any concrete plan on their retirement savings. Some are struggling to make ends meet, do not contribute to their CPF (Central Provident Fund). Many just save for a rainy day and depend on the huge account they foresee they are going to close or on completion of an assignment. Their insurances are lacking, couple with all the housing, family commitments and compounded with their erratic cash flow, planning their finances indeed can be very challenging.
What can the self employed do?
Self employed must change their mindset and shoulder the responsibility of paying themselves well. They need to increase their savings and embarked unto a systematic plan of regular contributions into an investment plan best suited to their risk profile and life stage. Regular and voluntarily contributions into their CPF and SRS (Supplementary Scheme) would even help to defray taxes.
By embarking on a regular contribution savings/ investment plan, be the amount $100 or $1000 a month, they will see the harvest in due time. The greatest asset one could have is Time, investment compounded over time will create a fortune or even a legacy. The key is to start now regardless of how small the contribution. Every drop makes an ocean, the money flowing into your retirement savings will help you build a nest egg.
Assuming if you were to look back in time 10 years ago and ask yourself if you could have parted a $100-$500/month, you would have accumulated or even grow a sizable nest egg for yourself. As such do not delay, talk to an Independent Financial Adviser Rep today to map out your options for your retirement.
Maybe and just may be we could avert a retirement crisis.
The article first appeared on 16 Jan 2014.