You are committed to living an eco-friendly life. That is a noble endeavor, since our planet is facing some major environmental threats. This is one of the reasons that Greta Thunberg has become such a popular speaker and has gotten such traction with her recent post calling the EU’s new climate bill a joke.
However, the world doesn’t stop turning just because we are facing the terrifying possibility of climate change. We also have to contend with the risk of being unable to make ends meet during retirement.
There is a good compromise. You can invest in ethical, eco-friendly companies. These investments can help you meet your retirement goals without harming the environment.
The Eco-Friendly Approach to Retirement Investing
Sustainable investing is becoming very popular these days. A study cited by Bloomberg showed that there were $30.7 trillion in green investments last year. This was a 34% increase from 2016. You should keep this in mind as you start making retirement plans. And yes – you DO need to start planning for retirement.
It is hard for youngsters to imagine that one day they will have to retire. I mean, some of them are still in college or high-school. And I refer to them because – believe it or not – that is the time someone should be thinking about retirement. Being aware of the future is one of the pillars of a happy life. Why? Because in this way, we are given the opportunity of planning, and by doing so, we are more likely to avoid being caught off guard. By planning, we show life that we are ready to start new chapters – and believe me, retirement is one of those life-changing stages of life.
Why? Because unlike common knowledge, retirement does not only change our professional status – it also changes social and emotional parts of life. Just think about it – you are 70, and after having worked for 50 years (which is, exactly, half a decade), you step away from your job and your life as you know it. It is time for a new, exciting stage of your life – retirement. You can read more on the subject of getting ready for retirement here: https://www.aarp.org/work/social-security/info-05-2011/10-steps-to-retire-every-day.html.
You need to know how to plan for retirement without hurting the environment. Both goals are essential, so take them seriously.
Invest in the right green securities
Green companies are becoming more popular these days for investing. You can choose a lot of green companies when creating your portfolio. However, you also need to make sure that they will have a good ROI. You shouldn’t invest in a company just because it is green! You need to look at its fundamentals too, such as ROE and dividend growth rates.
Taking action by saving as soon as possible
The first step towards retirement you should take is acknowledging that it will happen. Once you put it on the table, you start to realize that there is something you can do about making that a great life experience and that the sooner you act, the better.
The good news is that living a greener lifestyle makes saving easier. You won’t spend as much if you aren’t a wasteful consumer, so you will be able to make a dent on your retirement savings.
This is exactly why I believe that parents should talk to their children about retirement as soon as possible. Let us take the example of a girl babysitting during high-school. The amount of money gained can be wasted on things such as clothes and going to the cinema twice a week or be put into a retirement account. A great way to deal with this would be splitting – deciding that some money could be spent and that some should go to a retirement fund.
If you are way closer to retirement than a teenager – and if you are reading this article you probably are – do not panic! There is still time to take action. The first step you must make is create a spending list. See where your money goes monthly and where you can reduce some costs. Instead of eating out three times a month, do it only once and put the rest of the money into an account you are not supposed to touch before retirement.
You can turn cooking into a hobby and start inviting friends and family over for dinner – in this way, you get one step closer to financial security, spend quality time with the loved ones and invest in social life, which is also beneficial when retired.
Visualizing the retirement period
You are already saving for retirement and that is great. What you should do now is try and visualize that period. Yes, exactly! Imagine how your life will be and write it down. Journaling about retirement is a great way of visualizing how you would like your life to be like.
Being as specific as possible about it helps. Instead of writing” I will still be working”, write” I will be teaching English to kids two times a week, for one hour”, for example. Or say that you intend to spend your retirement years tending your garden and reading. Go for whatever you imagine being closer to the truth.
Evaluating your health
I know that for most of the people, bad health seems like something that will never happen, just like retirement. Or this is what they like to think, because especially youngsters have this feeling that they are invincible. That is great because it gives them the motivation to accomplish so much, but old age is a vulnerable stage of life, which requires planning. Read about the latest rule for retirement plans here.
Retirement (and life itself, for that matter) is designed to come with uncertainties, but there is something you can do to diminish the risks. Go to annual check-ups – both to dentists and generalists – and make sure that you live a healthy life. Avoid junk food and watching TV and go for home-made food and exercising instead. These little tips will help you keep fit and healthy for as long as possible.
Creating a retirement budget
There are several things you should consider when creating your retirement budget. For starters, you should know how much money you have coming in. Then, do some math according to the life you imagined you want. If you express the desire of traveling the world, you must take into consideration every dollar you will be spending on the way.
A third thing you must remember is debt. Did you buy things that you will still have to pay for when you retire? Do not rely on that sum of money, as you will have to give it away, anyway. If you still need some guidance on the matter, here is a retirement investment blog you will love.
Getting ready for the unexpected
This point refers to being cautious and imagining the worst – floods, diseases or anything that could sweep you off your feet. Knowing what might go wrong will help you deal better with situations, though you should not spend too much time thinking about the bad stuff. Just enough to make sure that you have some money put aside in case of emergency will do.
Getting older is not something we want to think about. But as a normal part of life, it will come. And it is better for us if it finds us prepared to deal with changes. This is why you should be investing for retirement from an early age. You must take into consideration everything and create a plan. Think about your hobbies, your health, your budget and wants. All these points will help you build a coherent plan for happy days as an old person.
Making Sustainability a Focus During Retirement
Are you serious about planning for retirement? You can do so without increasing your carbon footprint. You can start by making green investments and cutting your consumption. You will see a major change!