Whether you're close to retirement or have a long way to go, it's never too early to begin investing and saving for the golden years. Actually, the sooner you start, the better.
Not even one quarter of retirees feel that they have enough money to live comfortably during this period, so it's important to plan ahead wisely and prevent mistakes that could cost you dearly once you do retire.
Her... ››› more
If you're already ploughing money into a pension fund, that's a great start. But how can you expect your pension to perform over the years? After all this affects how much your pension pot is going to grow over the years. And it ultimately affects how much money you have once you retire. Let's take a closer look…
What performance to expect from your pension fund
Your pension fund provider mi... ››› more
To be happy and financially carefree in your retirement years, you need to carefully plan ahead, invest, and make smart choices.
The retirement years can be the happiest of your life if you have a reasonable income to live comfortably. That's why it's so important to start saving for your retirement while young and to not rely solely on company pension plans.
Since many soon-t-be-retirees a... ››› more
Saving for your retirement is no easy task. Yes the earlier you start, the better your chance of having a more comfortable retirement. But problems will still remain.
To achieve a comfortable retirement, you need to save a lot of money. And you need to see your savings grow above the rate of inflation. Otherwise they're just wasting away.
So how can you achieve this? And how can you do this ... ››› more
After a rocky start at the beginning of the year, the market has continued to climb. Again the Johannesburg Stock Exchange has been hitting new highs. Could a correction of say 10% to 20% be around the corner? It's always a possibility. So it's crucial to protect your investments, especially those you have earmarked for your retirement. And the closer you are to retirement age, the even more cruci... ››› more
Once you reach retirement age, you'll most likely have a couple of options to make about your future. Like many people, you may opt to buy an annuity with your pension pot. At first glance you might not think you're getting a lot for your money, but there are some benefits to opting for an annuity. Let's take a closer look at the pros and cons…
The income from an annuity
Over the years, annu... ››› more
It appears that nothing about preparing for retirement is easy. But as with most important things in life, it's all comes down to the planning. If you've decided you're going to buy an annuity with your retirement savings, what are your options? There are a wide array of annuities to pick from. Let's take a closer look at five of the most popular…
Annuity #1: A level annuity
This is the most... ››› more
Arguably, one of the best ways to prepare for retirement is to have a few different means at your disposal. This gives you some diversification and reduces your risks if something untoward was to happen to one of your plans. For instance, you may have a retirement annuity, a pension scheme through your job and a bumper savings account. And if you haven't thought about it before, you can put some m... ››› more
You probably have a good idea of what you'd like to do once you retire. Perhaps you want to travel. Maybe spend more time with your family. Or perhaps get that fruit and vegetable garden really going. But have you thought about how you're going to get there? More importantly, have you financially planned to get there? Read on to find out what you need to do to get started…
Retirement planning... ››› more
Last week, ratings agency Fitch, downgraded its outlook on South Africa from stable to negative. It's reasoning… A poor economic outlook and rising consumer debt.
Now these ratings agencies can be used as a gauge to tell what the rest of the world thinks about investing in South Africa. And when they downgrade their outlook, it sends a poor message to the rest of the world and bruises South A... ››› more
Retirement annuities (RAs) are popular saving vehicles for retirement. But do you know there is a newer generation of RA that uses unit trusts to invest in? It doesn't need a policy like the older style, works out cheaper and is much more transparent. So how can you weigh up which RA is best for you? Ask yourself the following questions…
Question #1: Are there any penalties if you change your... ››› more
It shouldn't be long until the first Bitcoin exchange traded fund (ETF), the Winklevoss Bitcoin Trust, launches in the US. So have you thought about adding some Bitcoin flavour to your retirement fund? This might sound a crazy idea, but many retirement experts advocate up to 10% of your pot in alternative investments. So you could opt for some Bitcoin exposure. Let's take a closer look at whether ... ››› more
Retirement planning is a bit of a minefield. If you're saving on a monthly basis to your retirement fund, is it enough? How can you retire earlier than you planned? And how can you avoid the biggest mistake you can make when you retire? To find out and discover what else you should be checking when it comes to your retirement planning, keep reading…
The importance of checking your retirement ... ››› more
Investing in dividend paying shares is one way to produce an income stream when you retire. You can buy the shares and, until you need the dividends for income, keep reinvesting. You can just sit back and watch your holding grow. But you shouldn't just rush out and buy these shares at any price. The price you pay will have a bearing on your return from the dividends. Let's take a closer look…
... ››› more
When I was still only a kid at school my dad one day sat down and had a talk with me about savings. You know, the whole “put some money in the bank every year and save for a rainy day” speech.
Miraculously a bit of that got stuck in my mind and today I'm really grateful for it.
You see, without even knowing it the principle he taught me could put an extra R1,064,479 in my pocket by the d... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
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Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.