Put time on your side

Put time on your side

To start with your investment process – we need to develop a strategy.

 

Develop specific strategies

Have a clear concise, and well-defined investment planning process.

1. Set Goals [make a plan]
2. Get Experts help when needed [ understand the regulation environment]
3. Set a time frame
4. Establish risk tolerance
5. Diversify
6. Review plans

 

Which far ado let’s dive into it – let’s say you are 20 years which I wish I were, with the knowledge I have at my disposal yet that’s a story for another day.

You are 20, and just out of university not saying this process is only for those who went to university – you want to save for your retirement. How much must you save each year at 10% to accomplish the goal of a million at age 65?

The answer is that it will take a lot of effort, and some discipline – R 4 000 per year that’s a lot of money to some people, I also thought it was before I could even start taking my life seriously.

The price is going up, but it is not yet out of our reach.

What happens if we wait until even longer?

·         At age 30, the annual cost of meeting our goal has grown to R 10 000 a year.

·         At age 40, there are 25 years remaining to age 65 and the cost to fund your retirement supplement is now over R 28 000 per year.

·         At age 50 means that there are only 15 years until your planned retirement, but you will need to do deposit R 85 000 each year to achieve your retirement target.

·         At age 60, it means that there are only 5 years left. R 450 000 is required each year to fund your retirement plan – the choice is yours here, either you work your butt-off until 80 or you find a way like most of the guys who went and become millions with there big hairy ideas after they went pass, they retirement time. R 450 000 is way out of the question and not everyone has this kind of money laying there but many people find themselves in this situation, and the common reaction is to wonder how it will feel to still be working at age 80.

 

It is not always possible to start early, but the earlier we start the lighter the burden.

The cost of reaching our financial goal does go up each day – it is extremely easy to put off retirement planning. There is always a good excuse, so be aware and try not to let it happen to you. 

                                                  IN CONCLUSIONS

Saving for your retirement is one of the longest and biggest financial commitments you will make. With access to investments that other funds cannot offer, and their long-term track record, investment companies make a compelling case as part of a balanced portfolio for retirement. And with savers now having unprecedented freedom over how they can take their pension, now is the perfect time to learn about the unique advantages of investment companies in delivering a higher or growing income in retirement. In any case, even small amounts of savings will add up over time, particularly if they’re well invested. Regular saving works really well with pensions. You’re investing consistently over an extended period.

Thanks for reading! Join our email list here: Newsletter if you’re interested in practical psychology for everyday life.