2 Things as You Get That Partial Retirement Money

To get some of your retirement fund while you are still young and active is a great advantage. And if you have a pretty good amount, it can be life changing, however, 2 things

Be Prudent

This money can potentially change your lifestyle but be careful this lifestyle change does not spiral out of control. Be prudent, that money can dwindle in no time at all, with the wrong moves.

You are probably thinking of getting a car, extending your house, buying land starting a business. A car, a house and a business can change your life but often life gets more complicated and the expenses mount. So even as you upgrade your lifestyle, be aware of the expenses that come with this upgrade.

Building, supersizing your car or expanding your business now, may seem like the right move but remember a car does not have to be a fuel guzzler, a house does not have to be a mansion and the business does not need bigger premises or more stock. For one thing, you do not need a bigger car if it is only to drive you to work and back, the one you have now, is just fine. Rather, make sure you give it a regular service. Also, the big house may seem like a great idea now, with the children at home but children grow up and leave to go and live their own lives.

Most of us don’t need a bigger house; we just need a house that functions well for us and our family. The average house size in days gone, worked well for families and extended families but we seem to have forgotten all that and have been increasing the sizes. We seem to be ignoring the fact that the average household size is actually shrinking, especially in urban areas.

Keep Saving For Retirement

Your money that you have cashed in is money you will not have when the time to retire comes. And a regular savings account you might find is woefully inadequate for your future needs. So, be very intentional about increasing the money you withdraw now. Start looking for alternative ways to make it grow.

The best alternative, if you are unsure on how to grow the money, is leaving that money well alone. Yes you have the right and chance to partially withdraw it, but it is not against the law to keep it in your retirement fund.

Don’t put your retirement in jeopardy by raiding it now to blowing it away on half researched investment ideas or consumables. Your retirement funds are for your retirement for you to access when you do retire.

It takes meticulous planning and discipline to stay strong on the path toward financial independence after retirement. So, avoid being swayed by what you see others doing if you are not as good as they are at growing the money. Better leave it where it is.

Kwachalelo

A Zambian site sharing quick read articles around work, money and adulting life with selective interviews and quotes.
The founder, editor and lead writer who left university with a good grasp of public administration, economics, money, banking and international relations is also qualified in journalism and creative writing. She has been published in Drum and The BBC Focus on Africa Magazine and has been featured in several local and international publications.
An avid bird watcher with an extraordinary fondness for chikanda ( a Zambian delicatessen that vegans and non-vegans world-wide are putting on their bucket list ) she often tweets in poetry and short prose @kwachalelo