Editor's note: The Business Mentor is a weekly business column by Armando "Butz" Bartolome, president of GMB Franchise Developers Inc. and chairman of the Association of Filipino Franchisers Inc.
MANILA, Philippines - As you may be reading this article, you begin to shrug your shoulders and say, "Nah this retirement stuff is not for me.”
On the other hand, there are those people who may be trying to avoid confronting the word "retirement." It may be because they may be afraid.
For almost two decades, I have been giving seminars on retirement to many people in various companies and government agencies.
In the beginning, participants would put up a defense mechanism. Some would say that there is really no need to attend, except it is compulsory prior obtaining their retirement money. Others would boast of having properties in the province, which they will turn into a housing project. There are people in the room who remain quiet, simply observing.
Later as everybody gets warmed up, issues begin to surface. Everybody would almost agree of being afraid. This is natural for anyone who is engrossed with work for many years.
But sooner or later all good things come to end. The unknown is where the fear lies. Nobody can definitely predict what the future is. However, given the time to prepare, it is best to have a plan.
What are some issues that retirees (or soon-to-be retirees) are so afraid of facing?
1. The retirement money
It is definitely the last that one will ever get. The exact figure may be dependent on the net after deducting all dues. It is better to calculate how much money you can expect to receive by the time of retirement. Include the value of the money by that time. One may be receiving P2 million ($44,692.80) in 5 years' time. But consider what is the money's value during that time?
2. Ways of making the money grow
There are a thousand ways of growing your retirement money. Create a budget for possible expenses and set aside a portion for investing. This will be the seed money to possibly keep the flow of money coming.
3. Boredom or business
I often hear of retirees who try to fight boredom. It is indeed true! People who are used to working for 30 to 38 years and retire with nothing in mind to do will find the coming months as too boring. Travelling may be great but soon the body starts to look for something to do. Activities may be planned like joining community projects. Others begin to do small business. It must be remembered as a precaution to avoid exerting too much pressure or stress in doing business. Age is a major factor to consider. One is no longer the ever-energetic 23 years old.
4. Maintaining the lifestyle
This is a fear of many retirees. Getting used to a certain lifestyle may have to undergo some changes. Expenses need to be reviewed.
The rising cost of medicines, especially maintenance tablets, is one of the fears facing retirees. Although there are "senior citizen" discounts offered by pharmacies, medicine is still a major expense. Thus if the retiree does not engage in a business at all, it may be pitiful to see all going down the drain.
Bottom line: You may be retiring in 5 or even 10 years' time. It is best to start making plans. To wait for the time to come may be too late. This may lead to cramming and just getting a hold of anything to survive.
If you so happen to be those retiring in two years time, do not panic! There are businesses to look into like franchising.
Visit Association of Filipino Franchisers Inc. There is also the Philippine Center For Entrepreneurship (PCE) the foundation behind Go Negosyo. There are also great people to help like Francisco Colayco of Colayco Foundation and Randell Tiongson. I personally know these two gentlemen and they possess capabilities to assist. Be careful of scammers, retirees are the apple of the eye. It is best to be cautious and never invest without investing.
Last but not least, as a fellow retiree to another, let me share that no matter what happens never be afraid. Have Faith and always seek the Almighty God. He never fails to listen.
For questions and more information, you may contact Armando "Butz" Bartolome by email: [email protected] His website is www.gmb.com.ph