Congratulation!, you live in a free and independent country (ruled by swines that rapes our constitution, con-ass = conniving assholes hehehe). The higher chamber looks kinda like a pitbull arena where dog bite fellow dogs, and conducts a hearing about sex scandal of some celebrities. "Wow Philippines" nga!
The swines took several years for crafting the PERA bill (retirement bill which will help and encourage to save up for their retirement). And it only took those swines a marathon session that dragged toward midnight to passed the Con-Ass resolution. What the F***! (P***** INA), oops! I need to get another life insurance with huge value for saying those things.
Anyway, lets talk about independence.. If independence of a country means people rule themselves not by some other sovereign country, then personally what is your independence?.
- living and surviving by yourself?
- not relying on others?
- no debt?
- having your own family?
- darn good paying job?
Are those enough?, have you thought of your boss? the deadlines?, your landlord? and you keep working your ass everyday just to make things alright.. then it is not really independence. Lets have a closer look what really is Our Independence.
Our Independence (retirement) means,
- we don't have to kiss our boss' ass everyday
- we own our home
- we don't have debts
- children are already living on their own
- we have money to live comfortably for our remaining years
- and be able to do what we like to do (not really, as long as your health permits)
Our Independence is a journey, it entails a lot of challenges and struggles along the way more like the way our country went through. Having under the rule of Spaniards (boss and work) for many years and labored many years under Americans (providing for your own family). Finally, we earned our independence (retirement).
We don't need to struggle for 300 or more years to become independent. We only have almost more than half of our lifetime to do so. How then? save and invest, simple as that and need not be a struggle.
Scenario:
- 30 yr old couple with kids
- want to be independent at age of 60
- expected life expectancy of 85
- currently P30,000 is enough for the couple's living expenses, and considered it as comfortable living standard, and expect that nothing will change in the future lifestyle except more visits to health care
- inflation = 5%
Result:
| Type of Investment | Expected Investment Return | Monthly Investment for Retirement (and 5% increase every year) |
| Bank Deposit or equivalent | 4% | P31,250 |
| Balanced Fund | 8% | 10,400 |
| Equity Fund | 10% | 6,250 |
What if we only start saving P10,400 a month at 8%, 5 years later... we can only retire 7 years later than what we wanted to.. what that means is run into risk of having to work our future old body into old age, enduring rheumatism and some ailments when we should be resting and enjoying. And worse is that we risk being a burden to our children to take care of us when they should be focusing of providing for their own family and building their nest egg. That also exposes us to the risk of possible conflict with our future in-laws. Start investing for our retirement!
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