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Is your Financial Future Secure?

Will you live the life you want in retirement?

David Cumming




Most people love the feeling of saving and achieving returns on their money, but this does not necessarily mean that they will have financial freedom when they retire

Do you ever ask yourself if you’re saving enough to live the lifestyle you want in retirement and at what age you’ll be able to retire? Do you know how much you will be able to live off and how long your capital will last? If you want a strong handle on whether you’re on the correct path to living the lifestyle you want in retirement then lifestyle financial planning (LFP) is for you.

LFP is a goal-based investment plan used by certain financial planners to help clients achieve their investment goals and objectives. A client tells the planner at what age they want to retire and the monthly income they’d like to live off (in today’s money).

This monthly amount is usually based on their current expenditure, but takes into consideration that in retirement large outflows such as mortgage repayments will probably no longer be there. The model uses inflation to forecast this figure to retirement age, creating an investment goal.

How do you reach your retirement goal?

Reaching this goal is predominantly reliant on three things:  time, real return and contributions.

  1. How many years can you invest for? The longer the period of time, the greater the compounding effect in your portfolio.
  2. What real return (return above inflation) can we achieve? The higher the real return, the quicker your money will grow in real terms. Unfortunately with a greater real return comes greater risk, so this needs to be balanced and understood correctly when speaking with your financial planner.
  3. How much are you able to contribute? Quite obviously, the more you save now, the more you’ll have in retirement.

All three of these factors play a large role and need to be taken into careful consideration, as they will ultimately determine whether or not you achieve your investment goal. Arguably one of the most important of these factors is time.

Is time on your side?

A person who has limited years to invest and wants to live off a significant amount in retirement is unlikely to achieve their goal, so the key is to set up a financial plan early in life.

Let’s take two simple examples to illustrate the effect that time has on your financial plan. Tom is 21 years old and is able to save R1 000 per month. He continues saving R1 000 pm until he retires at age 65 and this contribution escalates by 6% every year. He was able to achieve an annual return of 12% on his investment (if we assume the inflation rate to be 6% then this equates to a 6% real return).

Tom’s aim is to live off R20 000 per month after tax when he retires (in today’s money). Based on this scenario, LFP can show Tom that he will be able to achieve this lifestyle for 15 years after he retires. His capital will run out at age 80.


Now let’s take Xolisa, age 35. Xolisa enjoyed spending his money in his twenties and early thirties and has only now started to think about saving for retirement. Xolisa has the exact same retirement lifestyle objectives as Tom and can also only save R1 000 per month, escalating annually by 6%. He also achieves a 12% return (6% real return) on his investment. By using LFP, Xolisa can see that he will only be able to live the lifestyle he wants for 4 years after retirement age. His capital will be depleted by age 69.


By starting his retirement plan 14 years after Tom, Xolisa has drastically decreased the amount he can live off after he stops working. For Xolisa to make up for the 14 years of not saving he will either need to retire later, live off less in retirement, start saving significantly more now or take more risk on his money by targeting a higher return.

Keep revising your plan

LFP is not set in stone. It can be revisited over the years and, as your circumstances change, your portfolio can be adapted accordingly. By following a strategic real return investment plan LFP allows you, at any point in your life, to be aware of whether you are on track to achieving your retirement goals or not.

There are people who save their entire working life believing that they are saving towards a lavish retirement, only to get there and find out that they can only afford that lifestyle for a few years. Similarly, you might find someone who is saving too much towards their retirement and would actually be able to cut down on their monthly contributions and live a more comfortable life now.

Related: Time To Understand Costs – How do your fees affect your return on investment?

David Cumming is a Financial Planner for private clients at Consolidated Financial Planning.

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Personal Finance

6 Ways To Develop A Millionaire Mindset

Chasing money has remarkably little to do with getting rich.



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If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.

So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.

Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.

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Personal Finance

4 Ways To Become A Millionaire Even When You Start With Little

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes




The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1. First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

2. You can learn loads about any topic online


I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago.

Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials. Set some time aside every day to learn something online. It could be a video series or a favorite blog.

When you get into the habit of learning regularly you’ll find that you advance much faster.

3. Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about.

This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4. Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

Related: How To Become A Millionaire, Explained In 1 Minute

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on

Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

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Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands



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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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