We all need to plan for retirement, and better sooner than later. You can do it the way your parents or grandparents did by calling a financial advisor, who will probably ask you a couple of questions over a cup of coffee to determine your risk profile and choose a portfolio for you. Once they’ve set you up, you will most likely not hear from them again (unless you hunt them down).
You will pay them a fee of, say, 1%, or maybe 1.15%, of the value of your savings for your entire savings life. That means nothing to you when you put away your first R1,000. However, as time goes by, that fee will keep growing. On a million, it will be R11,500. Now tell me that coffee was worth paying an annual fee for your entire savings life.
It doesn’t have to be like this. There is a quick and easy way to make your own retirement plan, perhaps even on that lovely new phone of yours. Log on to the 10X Investments calculators, fill in a couple of inputs and let it work out a basic plan.
You can also adjust the inputs and see how a small extra contribution today will grow into something substantial later. It will take just a few minutes to get started on the journey to a decent retirement, and you can do it on your phone.
Rise and shine, my fellow south Africans, and do it yourself. Empower yourself, educate yourself and save yourself annual fees for life.
Wake up to DIY retirement planning
Saving for retirement is likely to be the single biggest investment most workers make, yet few give it as much thought as they do to choosing a new phone.
