Financial Questions to Ask When Deciding to Retire

Retirement is a state when your life is not affected or dependent on the work you are doing. According to Mr. Phan Hoang Quan - Personal financial planning expert at FIDT Investment Consulting and Asset Management JSC, we will achieve this state when:

- Monthly passive income (not from work) is greater than monthly living expenses.

- Medical expenses for the whole family, if incurred, will be supported by insurance contracts or prepared reserve funds.

- Plans and projects for the future have been fully prepared financially.

- All assets have been allocated to ensure annual growth above inflation and minimize the risk of market economic fluctuations.

- Fulfill all financial obligations with related parties (banks, companies...) with government agencies such as income tax, land tax...

Increasing income and reducing expenses will help you save more money to invest in your retirement. Photo: Luong Hanh

At the same time, when deciding to plan for a comfortable old age, Mr. Quan believes that you need to ask yourself the following 5 questions:

- Is your current monthly passive income more than your monthly living expenses for family and dependents?

- Are medical expenses fully covered by insurance contracts or is there a medical reserve fund?

- Have the financial resources for your world travel plans and your children's education budget been prepared?

- Is the family's current wealth position optimized to grow faster than inflation and minimize risk? Are there additional costs to improve/convert assets?

- Do you have any loans with the bank? Debts with individuals or companies? Debts on personal tax obligations, land tax... or not?

"When it comes to retirement, it depends on your ability to save and invest to have enough assets and monthly passive income to meet your retirement needs. Here are some tips to help you retire early.

First, increasing income and reducing expenses will help accumulate more money for investment. Next, diversifying asset classes, thereby achieving stable growth in the long term and retirement later. Finally, you can consider consulting a personal financial planner to have a plan that suits you as well as protect your assets from market risks," Mr. Quan shared.

The Smart Finance program is jointly produced by Lao Dong Newspaper and FIDT Investment Consulting and Asset Management JSC. The video series is broadcast every Thursday at 7:00 p.m. with the participation of leading prestigious financial experts sharing knowledge and skills in personal financial management and investment with readers/viewers!

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