On the Money with Pieter Willem Moolman: Plan For Every Decade
www.MyPE.co.za: It’s
never too late to learn, but where your future financial well-being is
concerned, sooner is better than later.
So with that said,
your education in financial planning and investment
options is about to start.
Your twenties is a crucial decade in your investment education. You
might not necessarily have the funds to put away large sums of money,
but from 20 onwards it’s a good idea to come in from the financial
planning wilderness and learn a few new moneymaking tricks.
By putting a few bucks away in your twenties you get used to a savings
culture. Every little bit gets you into the game and teaches you more
about where your money’s going and what you should be doing.
Between the ages of 20 and 25 you should be putting at least 10 percent
of your salary away for retirement.
In your thirties, when saving for holidays, home extensions and other
minor short-term goals, unit trusts remain the way to go.
At this time in your life you should be starting to look a little
further ahead. A bigger home might soon be required, or the future
educational needs of your children might soon become a priority.
In your thirties you should be looking at 20% of your salary.
Like the middle stages of a Test innings, when the bowlers are toiling
and the scoreboard is ticking over but you have lost a few key wickets,
it is best to consolidate in your forties. Look at the runs on the
board, assess the situation and build on what you have.
A rash stroke will get you and your team in trouble. It is time to
execute your next move with a little thought.
When you reach your forties and your lifecycle and earnings take you
into the higher net income categories, you will probably consider a
lump sum investment.
Ask yourself what the purpose is. Is it to generate income for a later
life stage when you have retired or is it to buy your retirement dream
holiday house?
By the time you reach your fifties, you want to consolidate your
portfolio. Now is not the time to start taking risks, but rather to
keep a tight rein on where your money is going.
Start looking at where you are putting your money at least five years
before you hang up your boots. When you retire, you do not want to be
left short.
Building your retirement income (the money that will replace what used
to be your monthly salary) is essential at this stage of your financial
planning. Capital preservation is your goal and most investors would
adopt a more conservative approach.
Start looking at your portfolios. You do not want to lose what you have
built through unnecessary risky investments.
Throughout every decade there are guidelines to follow. The earlier you
start educating yourself about your finances, the better.
You cannot make decisions for your future based on talk around the
braai. Get a good financial advisor; someone you can trust.
CLICK
HERE to have
your financial
and other investment questions
answered courtesy of Coetzee Gouws from Full
Stop Communications.
Pieter Willem Moolman is the founder of PWM Financial Management in Port
Elizabeth in the Eastern Cape. Their mission is to provide financial
security and create wealth for their clients.
Port Elizabeth Budget Accommodation
Go to:MyPE.co.za
