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Personal Finance

Peace-of-Mind Financial Planning

Getting income and growth balance right.

Bryan Hirsch



Planning Finances

Let me begin with a few preliminary cautions: Investors wanting to create wealth are often unable to differentiate between ‘peace-of-mind’ solutions and creative investment strategies. A further stumbling block arises when investors attempt to achieve high rates of growth, yet have a simultaneous need for income. These two quite different situations have to be dealt with separately to find an investment strategy that will fit your needs.

Income protection

Peace-of-mind solutions should encompass the following three criteria:

1. Death too soon

Are there two breadwinners in your family? Do both provide cash for the protection of the family, and is there sufficient liquidity to pay off debts?

2. Living death

You need to provide income and/or capital for the possibility of temporary or permanent disability, as well as dreaded disease. Are you adequately covered for all major hospital expenses?

3. Death too late

Using today’s income needs and projecting to retirement, have you made calculations to understand the capital that will be available at retirement and the income this will provide each month, taking inflation into account?

If your planning has been adequate, the chances are that you will be able to maintain a reasonable standard of living. This will provide the solution to achieving financial peace of mind. Secondly, once this strategic foundation has been laid, all your future financial investment plans need to be made with the objective of creating wealth.

To achieve this, you will need to consider other possible investment avenues. Experience has proven that the investment of surplus funds, together with the risks you are prepared to take, will achieve the second objective.

Wealth creation

I am not suggesting investing in risky and adventurous schemes, but rather investing for the long term; anything from five to ten years, directly into the equities market (shares) and/or property investments. This is where real wealth and fortunes have been made.

There is ample evidence available to show that a well-chosen portfolio of shares over a long period of time will turn out to be a greater wealth creator than many traditional insurance or investment products.

I will be honest, most endeavours over the past ten to 15 years to find new products that not only give tax-efficient income but also provide capital growth have failed dismally. Thus, in terms of an investment strategy, where you are looking for income and growth you need to split your capital into two separate investment strategies.

The first part is to provide income in line with that which could be generated from this part of the capital. It must be borne in mind, however, that the income portion will be reduced because of inflation. One therefore needs to have a strategy in place to increase this income to absorb the negative effects of inflation.

The second part, the remaining capital, should be invested for a period of seven to ten years. There are a number of products available in which the remaining capital could be invested to provide for capital growth.  These opportunities relate to both local and international investments.

Steer in the right direction

In conclusion, my recommendation is that once a solid foundation has been established to provide you with peace of mind, you should assess your options carefully. Always ask yourself whether you are investing for capital growth, or whether you need income.

By doing this, you will be covering both of the entities I have suggested you should consider in your overall plan. The answer to all these questions will help to steer you in the right direction for the future.

BRYAN HIRSCH has been in the financial services industry for 47 years and is a director of Bryan Hirsch Colley & Associates. He has written two books, the first Bryan Hirsch’s Guide to Personal Finance and more recently, Steps to Financial Freedom. Bryan has written for many of South Africa’s top financial and business publications, has been a weekly guest on Radio SAFM for 18 years, and has his own weekly TV show You & Your Money on Summit TV.


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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Personal Finance

If You Think These 5 Things, You’ll Never Get Rich By The Time You’re 30

Five common mistakes entrepreneurs make when starting a business and how to correct them.



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Last week, I had lunch with a millennial who wanted some advice about a business he’s starting. After the usual small talk, we got down to discussing his business plan. Within a short time, it was clear that his business idea was great, his plan for executing was fairly solid and he had gathered together a strong team to help him make it happen.

So far, so good. But, to be frank, this guy has no chance of being successful with his current mentality. What it takes to be rich (or successful in any measure) has a lot more to do with your mindset than your ideas and plans.

From the time we started in business at the ripe ages of six and seven, our Grandpa Joe taught my brother Matthew and me many lessons about the details of running a profitable business. Over the years, we learned about how to create a business plan; how to market our products and services; and how to take care of customers, vendors and employees. All this knowledge has been invaluable to us in creating and running successful businesses. But, what our grandfather taught us about attitude and mindset trumps all other lessons.

Without calling out the specific individual I spoke with recently, below are five “hypothetical” attitudes that will get you nowhere in your journey to success – and the attitudes that should replace them.

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Personal Finance

5 Habits That Lead To Millionaire Business Success

You need the right habits if you’re going to succeed.

Timothy Sykes




What do all millionaire businesspeople have in common? Well, a lot of things.

I found from a recent study that 80 percent of all millionaires still go to work every single day. They’re working people just like me. But, they have to keep themselves in work or it all grinds to a halt. So what are the habits you need to make your business a success?

1. Patience

Nothing is ever going to come easy. You can look at the likes of Steve Jobs and Bill Gates, as well as the other usual suspects, to realize that success didn’t come with their first venture. Many of them failed time and time again. It took patience for them to become successful.

I read an article recently about 36-year-old teacher Andrew Hallam who became a self-made millionaire on a teaching salary. But, in his spare time he invested smart and lived frugally.

It proves you don’t have to inherit lots of money or become an instant success to make a millionaire business.

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

2. Dedication

You have to be dedicated to your craft if you’re going to become successful. Going back to Bill Gates again, he started his business in the back of his garage. Now that’s dedication.

It’s what I tell all my students. If they’re not dedicated to this, then they should leave. You need to be able to push through the barren periods if you’re going to reach the oasis of success.

3. Ambition and big dreams

Have you ever heard the quote, “Shoot for the moon. Even if you miss you’ll land among the stars”?

I take that to heart because even if you aim to become a billionaire and miss you still might be a millionaire many times over. Take the Wright Brothers as an example. Not content with creating a successful glider in 1902 they went on to create the world’s first airplane in 1903, making four brief flights in Kitty Hawk. It demonstrates the importance of dreaming big because you never know what you might achieve.

Related: 12 Millionaire Habits To Start Making Serious Money Soon And Build Wealth In A Hurry

4. Learn from mistakes

Every good businessperson will mess something up. It’s inevitable. What’s important is how you learn from your mistakes over time. Do you adapt after making your mistakes?

Millionaire businesspeople always set some time aside to reflect. Then they create a plan of action for ensuring that it doesn’t happen again. Most failed businesspeople put it down to “bad luck.”

5. Focus on niches

This important! Try to take over a whole industry at once and you’ll inevitably get swallowed up by the competition. Start small and control your own niche before moving into another niche. When you master your small area, you can push on and expand.

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

You’ll be amazed at how much easier it is to expand after you master your own niche/audience first.

Do you have what it takes? That’s the question I always ask novice businesspeople. You need a plan and you need the right habits if you’re going to succeed.

This article was originally posted here on

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