It's time to take your retirement nest egg by the horns
Depending at what stage you are in your life will determine how you should be preparing for retirement. If you're aged between thirty and fifty, it's time to take that retirement nest egg by the horns. Read on to find out what you can do to save for your retirement…
When you’re aged between 30 and 40, no doubt you’re facing the demands of children and paying off a mortgage.
Put 10% extra into your access bond to get your house paid off before considering any other investments.
A paid up mortgage is the most tax efficient investment you can make.
If you get a wage increase on which no pension will apply, put 15% away in a Retirement Annuity
Once you turn 40, it’s time to stop playing and get serious, the team of experts at The South African Investor
Paying off your debt is a top priority.
You may be wondering how you can do that. Well for starters, stop chatting on the phone, eating out and ask yourself if you really need DSTV or not.
Put at least 10% of your salary into the debt with the highest interest, such as a store card, and work your way through your debt until you can put this extra 10% into your mortgage.
Paying off debt is crucial to retiring comfortably
If you’re not economising for your retirement savings now, you certainly will be after you retire. So reducing expenditure to pay off debt is very important.
You can use extra cash to purchase an investment portfolio. You can afford risk so look at growth shares and even derivatives, but don’t invest more than 4% of your total assets into any single risky investment.
Equity unit trusts are a great way to get exposure and reduce risk. Start a hobby you can develop for retirement. Any debt you take on must be for income producing assets, so walk past that sports car until you can buy it cash.
And whatever you do with your retirement funds, don’t take out any loans or withdrawals from it!
So there you have it, what you can do to save for retirement.