What is retirement and what should it be? For many, retirement age is a scarecrow. He is looking forward to it, but the joy of fear of a possible lack of resources is diminishing. But it doesn’t have to be that way.
In retirement you should enjoy peace, but also travel or sports, it should be a more relaxed part of life. To be true, you should be financially secure. There are several ways to do this. Let’s discuss some of them.
You can enjoy your retirement with full sip when using early and high-quality savings
Perhaps the most frequently used option to prepare for retirement is supplementary pension insurance. It has the advantage, for example, of deciding in which form a pension company should invest your money – it can be a conservative investment, for example in bonds, or dynamic , typically in shares.
People are arranging this savings mainly because of the state contribution. In order to reach it, they must save at least CZK 300 per month. The maximum state contribution is CZK 230, but you have to save CZK 1,000 or more per month. An important factor is that contributions to supplementary pension savings are deductible items that can be deducted from the tax base up to CZK 24,000.
Another option for retirement savings is life insurance with a savings component. It can be capital and investment. You entrust money to funds that invest them.
You are guaranteed a return on capital life insurance, but only a portion of the money goes to saving, the rest is deposited against the risk of death.
In the case of investment life savings, a larger amount of money is saved on savings and you choose which funds you want to invest in. However, there is no guaranteed yield, it can even be lost. And money is only available with a high penalty before the contract expires.
The state does not support life insurance with a saving component, but it is possible to deduct it from the tax base up to CZK 24,000.
If you don’t have the adventurous nature to start playing the stock market yourself, you can do that with the help of funds. You can invest in them, but be sure to pay the fees charged by the funds. The state does not contribute to this kind of investment either.
So if you choose funds, you will be able to choose a guaranteed, conservative or dynamic fund. By name, it is already clear where there is a greater risk of losing (but also a chance of higher appreciation) and where your investment will float with calm water, but the revenues will not be large. Either way, you money entrusts the fund, you pay a fee and you don’t have to worry anymore. Then you go either good or worse.
Conversely, if you search for an adventure, you can go into stock trading yourself. Shares are risky assets, but returns can be very interesting, especially in the long run.
For example, if you want to go to the stock market, the RM system is offered. But you can act on the stock exchange through brokerage companies. This is not free, but probably the most suitable for beginners.
The purchase of a house or apartment for speculative reasons may also be very interesting in terms of long-term investment. Usually, people have to take out a loan, house or apartment for the property and then pay the installments on the rent.
After repayment, you can sell the property or continue to enjoy the rental income that goes into your pocket.