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Personal Finance

Your Retirement Journey

According to statistics, only 6% of South Africa’s workforce will be able to afford to retire comfortably.

Bryan Hirsch




It is unfortunate that so few people realise that neither contribution to a retirement fund, nor to a private pension plan, necessarily guarantees sufficient funds on which to retire.

My advice is to calculate the numbers now, in order to establish where you are today and what your journey will be for the future. I’m often asked when you should start saving for retirement and my reply is always “the first day you start work.”

If you talk about retirement to a newly employed, young person they are quite likely to laugh at you. After all, your working life can be anything over 40 years and, when you’re 20 years of age, this is two lifetimes away!

The real problem exists when people don’t know how much to put away for retirement. I’ve written about the effects of inflation on spending, but the numbers are more shocking when you consider someone earning R30 000 per month today at, say, age 30 and at a 7% inflation rate, will need to be earning R228 000 per month at 60 years of age.

The main reasons why investors don’t have sufficient funds at retirement are:

1. Lack of preservation of retirement savings when changing jobs

Lack of preservation when changing your job is not negotiable because, if you opt to take the funds and start again, it will take years of additional contributions to make up for the lump sum you were paid out and, worse still, you will lose out on the eighth wonder of the world, namely the power of compound interest.

2. Inadequate contributions to a retirement fund

If you are a member of a company fund and you and your employer contribute equally, bear in mind that a portion of the contribution will go towards the cost of group life, disability and administration. This could be as much as 3% – 4% per annum.

Furthermore, your pensionable salary is often lower than your actual earnings because contributions may not be paid on commissions and/or bonuses received.

This is where retirement annuities play a major role because you can contribute up to 15% of non-funded retirement earnings which will be tax deductable. This means that if you are in an employer driven retirement fund, but you earn other monies which are not part of your pensionable salary, you can make use of this allowance.

3. Wrong investment strategy

Investors are often too conservative. For any period in excess of seven years, you should be fully invested in markets both locally and abroad although you need to be regulation 28 compliant. Although many funds have a voluntary default option which, upon nearing retirement, ensures funds are invested more conservatively, I’m not sure if you should automatically decide on this. My reasoning is simple. We live up to 25 years or longer in retirement and, therefore, when you come to retire you must look for some growth assets which will take inflation into account during the ensuing 10 – 15 years.

It’s back to the importance of understanding your financial plan. You need to assemble all the pieces of your puzzle to fully understand what your total funds will be at retirement. What is even more important is understanding what you’re invested in, understanding that if it’s income you need, you want certainty and security but, if time is on your side, you need growth.

Plan well in advance

Mature people will tell you that old age is not for sissies. Planning for retirement and understanding your journey is not for the financially disorganised. You don’t have to be a financial wizard but you do need to plan correctly. After all, when you go on holiday, it’s normal to plan your trip weeks in advance. The same principle applies to your lifetime financial journey. If you don’t plan properly while you have time on your side, and the earning capacity, don’t be surprised if it’s too late once you retire.

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

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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