Tuesday, August 19, 2008

Life after Retirement?


Time really flies, in a couple of years I will be retiring from current employer. I was avoiding the course on “Preparing for Retirement” for quite sometime despite good recommendation from many friends. Last week I changed my mind and attended the program at Melaka Holiday Inn with twenty others. Interestingly it turned out to be an enjoyable and very informative program and worth the money paid by my company.

There were so many things that I took for granted and neglected so far but finally became a priority to me and fellow participants. Some of the things that I have been practicing for quite a few years now are being reaffirmed as positive moves in preparation for retirement. The program was made very interesting by the principal trainer Syed Abd Aziz who used not only his knowledge but lifetime experience to drive in the points and reality of life.

I have never trust an insurance man nor unit trust sellers and the trainers reaffirmed my instinct that you need to avoid getting into the trap of these two salespersons. We need to understand how the two system works fully before committing to it, otherwise we will become the casualty of the system. I keep most of my hard earned savings in the ASN, ASP and ASB (fixed investment) and surprisingly the trainer who is master sellers in insurance and unit trust did the same thing with his savings.


Some of the learning objectives covered in the course are:

1. To take steps to appreciate phases of life retirees will go through upon retirement.
2. To take steps to be mentally, physically and emotionally prepared during these transition phases.
3. To explain step on how to make investment decisions and evaluate opportunities.
4. To identify wealth protection measures.
5. To identify opportunities where retirees can serve the society and nation.
6. To explore select areas of interest.
7. To develop a network and support group.

In the nut cell the programs covers: Preparation of Retirement, Financial Planning, Investment, Protection and Estate Planning, Entrepreneurship, Healthy Aging, Volunteerism, Hobbies and Leisure.

As the result from the program I am now changing my paradigm from dependence to independence, breaking away from the employee mentality to entrepreneurship. I am working towards replacing my existing perks and incentives with new suitable alternative choices such as:

1. My own medical and insurance program.
2. Program to protect my capital.
3. Choosing suitable investment vehicle to transport my wealth through final life phase.
4. Preparing myself with spiritual, emotional, intellectual and physical stability to wage through the independence paradigm.

As for my investment direction it will be heavy on fixed instrument instead of equity based investment. There will be about 25% exposure on strategic properties to spread out my basket of investment, while knowledge and experience will be used heavily on business and entrepreneurship ventures. The knowledge, experience and network will be used to offset financial commitment in business ventures and hopefully it will minimize my financial risk.

I have to write a will now to ensure that whatever I have will be properly administered and distributed among my wife and children when I am not around. The last thing that I want will be for them to quarrel over my little properties and to ensue they will have a better future even without me.

I have set my new mission to be the role model to my family and society in wealth creations and sharing. To achieve balance life in spiritual, health and wealth. My KPIs have gone beyond me; it will be based on the performance and success of my children and people around me. It will be based on how much I give back to the people and universe.

22 comments:

Zabs said...

Salam DJ,
That was an eye opener to me. Although have read a few books and articles on retirement, never thought that there really is a course conducted on this subject.
Although I don't intend to retire as yet, even though will be 57 this Dec. would also like to get the experiene which I think is benefical both to those who wants to retire or still wants to work in their golden ages.
Could I get the contact no of the organizer please? TQ.

jaflam said...

Salam Zabs,
It will be interesting for you to check on the business and many other things that you have done since your retirement from service. The course is an eye opener for me and many in the program.

You can contact the Principal, Syed Abd Aziz at 016 2163335 he is the co-owner of Human Capital Development Services based in Bangi.

cakapaje said...

Salam Jaflam,

Kudos to you for attending and preparing yourself for your retirement. That, is something most people - sadly many in countries other than Europe and US with the exceptions of Japan and S Korea - are not known to do. Many, work themselves to the bone hoping that retirement means less work, but many forget, it also mean no or less income. It is not surprising then that quite a number of people squander their EPF and savings within 5 years after retirement. A sad affair indeed.

Kerp (Ph.D) said...

aiseh dato, feel a little out of place la on this particular entry. there you are having to write about retirement while here i am about to kick-start again whatever career i have for my future undertaking.

no worries dato, i'm sure you'll enjoy your retirement year. jadi macam pak idrus, a man of leisure...hhehe...

jaflam said...

Salam Shah,
You are right in Malaysia about 70%of retirees could not manage their retirement benefits and end up with financial problems.

The broke the golden rules of not spending retirement savings for high risk ventures and activities. They became prey to the many vultures that after their sudden wealth. EPF should conduct this program to all members well before their retirement.

jaflam said...

Hai Kerp,
Sorry to bore you with this sensitive topic but unfortunately in average men live up to 75 years old. Meaning after 55 they have another twenty years to live, it is a hell of a long time to live without plan, mission and objectives.

Like you I will be retiring from my current employer but then starting a new mission, doing what I like most for myself. You can use the same formula in your new endeavors, capitalizing on your strength and personal assets. In fact my trainer experienced his first retirement at 35 before restarting with new mission that includes wealth and spiritual aspirations.

All the best on your new career/mission mate.

muteaudio said...

Dato,
I think the gov have to make this course compulsory for every employee, be it gov or private sector. Just like PLKN. This should start when the person started working or worse case scenario, when they're going thru 'mid life crisis'.

Hi&Lo said...

Jaf,

Very interesting topic. Life balance... You can do the things you love to do which career prevents you the luxury.

A great horizon awaits you. You will touch and uplift many lives.

jaflam said...

Hai muteaudio,
It is true those who attended the program early will have a better chance in managing their retirement. The effective investment and savings have to be done early. The medical and hospitalization insurance premium will be too high or not coverable when you are old with all sorts of chronic diseases.

The healthy lifestyle has to be instilled early to become a habit. Hope the Government will look into this matter seriously and provide the necessary knowledge for people to survive their retirement age. Otherwise they will become the burden to the society and nation.

jaflam said...

hi&

Our life can be divided into three phases (1) 1-25 yrs, where we devoted ourselves to studying and acquiring knowledge (2)26-55yrs, where we will be busy with our working life as an employee (3) 56 -75 yrs, we are in our retirement age and became independence. Here we lead and manage our lives, doing things that we like best.

In fact if we knew the cycle early we could break from the norm and practiced the mixed system in the early phase.

Ydiana said...

Hi DJ

Ehem...trying to get used to the new name.

Well done. Early planning is vital in life. Like the saying, Fail to Plan, is Plan to Fail.

I heard from a reserch findings (don't ask me what now)that most retirees spent all their lifesavings and retirement funds within 2-5 years after retirement. And another research state that retirees treat their children as 'income producing units'...hahaha. Meaning that they will need the support of their children after retirement. Well, you have just proven them wrong. :)

Great that you're also planning a wasiat for your family. If you haven't got a contact yet, which you may already have, I can recommend an Islamic Estate Planner from as-Salihin to assist you.

jaflam said...

Hai Ydiana,
Sadly it’s true about most retirees finishing their retirees within 5 year. We have to prepare better future for our children and if they look after us when we grow old it will be just bonus. We have to teach them well about love, care, noble values and avoid treating money as God.

I have asked a lawyer friend to look into my will & estate planning. Thank you for your kind thoughts.

U.Lee said...

Hello Jaf, very interesting posting. And I agree with you re a will.
Retirement is totally a different lifestyle and I have friends who practically become vegetables upon retiring as they have no hobbies, don't even know or afraid of computers, so bacha surat kabar, go coffeeshop, makan, tengok TV...itu la dia.

You know, retiring age is 65 here. 3 months before the government will send a letter...saya terperanjat they had my records, "Dear Mr Lee, congratulations on arriving at the milestone of your life....".

Then we receive our 'Senior citizen card'...dapat discount or special prices for seniors from bus to cinemas.
I just discovered day before I get free eye test from now on. (Medical, operations are free here for everyone). But never knew dapat free eye test at 65.

Then dapat our Canada Old age pension, (everybody gets it here) and kalu ta'chukup, can apply for supplimentary pension. I applied and got it.
Thus, here one gets your work pension, Canada old age pension, and if applicable, the supplimentary money.

I took early retirement and keep myself busy...fishing, clean house, fool around with my computer, keeping my blood pressure active flirting with women, ha ha...just kidding, as well fool around with the stock market...make some loose change...keeps me busy studying, researching the markets. And blogging too of course.

Ada lagi rambutans? Ha ha. Lee.

Pak Idrus said...

Dt. I have retired for almost eighteen years already and enjoy every minute of the golden years. I am prepared to share with you and your friends my experiences of what one should do before and during retirement. Feel free to contact me via my email.

Have a nice day and take care.

jaflam said...

Hai Lee,
Thank you for sharing the Canada experience on retirement. You definitely know how to keep your retirement interesting and productive. I bet you got more girl friends after retirement then during working life heheee.

We will propose to the PM to introduce Canadian pension scheme in Malaysia. It make sense you gave all your time and life working for the country during your productive years so why not they pay us when we became too old to work physically ??????

jaflam said...

Salam Pak Idrus,
Many thanks for your offer to share good retirement experience. After 18 years of happy retirement you definitely have much to share with others especially those who are retiring soon or even the young to ensure they could plan for a better retirement.

If there enough interest on this I don't mind to organize a 1 day session on this for the benefit of fellow bloggers.

Let’s work on this together with other fellow bloggers.

Mat Salo said...

Bang DJ,

If you ever arrange an informal "pencen session" make sure to please include me! Please have a suitable date to do this so I'll be at home at the time.. I'll forward you my approx. schedule later. Can we perhaps arrange about a week after Raya? Do it at the weekend of your open house or something. Haha.

Yes, this topic has been on my mind for quite a while a now and I'd like the benefit of your experience, and also the rest of the other "sifu's" mentioned.

Why not? This is something all of us ant farm laborers will have to go thru' someday.. heh. Thanks, Bang.

Salaam.

jaflam said...

Hai MS,
I have communicated with Pak Idrus who is willing to share his experience of 18 years of good retirement. If there is enough interests from fellow bloggers and friends. I will organize the 1 day session after Raya when you are around of course. We will get a few pro to share on key aspects of successful retirement i.e. financial planning, estate planning, spiritual equations, will etc.

Will discuss on the program marketing later. The course I attended fee was RM 2900/pac. May be ours will be RM 50 investment for food and token to speakers, the venue & arrangements will be gratis.

Kak Teh said...

salam, am sure you will do very well in retirement.
Selamat menyambut bulan ramadan dan semoga segala ibadat kita di bulan yang mulia ini diterima Allah.

Zawi said...

D Jaff,
Salam to you.
Your present wealth and investment could easily last you through your lifetime but who knows what will happen to it after you are gone.
I plunged headlong into retirement without any preparation knowing full well that I have a finance minister in the form of the other half who knows how to take care of what little that we have.
I live by the adage left to me by my late father. 'You wont have enough money however much you make if you dont manage it well and you will have enough money how litte that you have if you manage it well'. Marrying early and retiring after the children have grown up with their own lives and career helps too in the sense that I don't have to worry about them anymore.
Just don't be greedy and succumb to temptations of easy return, then you will be safe.
There is definitely life after retirement.
Best of luck to you sir.

jaflam said...

Terima kasih, semoga Kak Teh dan keluarga dapat menyempurnakan Ramadhan ini dengan penuh istiqamah dan ibadah serta mendapat keredaan dan keberkatan Allah.

jaflam said...

Salam Zawi,
Thank you for sharing and you touched on one of the most important principal that is spending less then whatever we earned. You can never go wrong with that formula especially with your wife as a good finance minister.

If we managed to organize the program on retirement you should be one of our speakers.