SEVEN HABITS OF FINANCIAL HEALTY RETINEES

1            Start early – to make full use of the eight wonders of the word i.e. compound interest, it is essential to start saving a receipt of the first salary cheque. Save 10% before budgeting for other expenses. A person lives according to his income – the 10% will otherwise just fritter away. Well-to-do retirees save for at least 33,2 years – the rest 29 years.

 

2            Save as much as possible!!

 

3            Don’t rely on the company/employer. The new tendency is to appoint people without fringe benefits – as in the case of professionals. 37% of financially comfortable retirees have retirement annuities on top of a retirement fund.

 

4            Leave savings without touching. Only 12% of “well-off’s´ dipped into retirement savings when they switched jobs.

 

5            Widen your nets – 98% of well-off retirees have an extra source of income.

 

6            Get professional advice from the very start and on retirement.

 

7            Make sure capital and income grows 48% of well to do’s have a guaranteed escalation annuity. Only 8% have a level annuity.

 

It is advisable that people stay economically active and let accrued capital grow optimally – e.g. in living annuity where capital growth is tax free. Do not avoid risk but take a long-term view on investments.

 

At age 65 statistical life expectancy is 89 average for a man and 94 for a female. That means 50% will even live longer than the average age. Plan for worst/best case scenario.
To assist you in your efforts and for more information on portfolio analysis and investment/retirement planning contact Elsabe Smith, a certified financial planner and a Fellow of the Internationally Affiliated Financial Planning Institute. Previously, for two years in succession, she was the top investment advisor in Sanlam, Gauteng North. She has also received the sought-after Golden Eagle reward from Sanlam for maintaining excellent performance and service levels. Via the Sanlam Glacier platform clients can access funds of Allan Gray, Investec, Coronation, and other asset managers.

 

Contact numbers: Tel: 012 470 0414/470 0113

Fax: 086 516 3401 / Cell: 082 550 1302.   E-mail: esmith@sanlam4u.co.za

Address: Sanlynn Building, c/o Lynnwood & Sanlam St, next to Glenfair Shopping Centre

 

Facts derived from the Sanlam Benchmark Symposium 2014.