A personal financial plan is crucial, no matter how old you are. The sooner you start building up some savings, the more financially secure your future will be. In a recent article from Allan Gray, they set out the five key steps required to ensure you retire with enough money:
- Start with a plan – Rule of thumb: you need to have accumulated 17 times your final pre-retirement salary at retirement. i.e. If your final salary was R50000 per month, you must have savings of R10.2m at retirement.
- Earn returns that are higher than inflation – This will require taking some risk, which needs patience and trust as your investment will move up and down at times.
- Avoid switching – This involves predicating what you think will happen in the future, which often results in the wrong prediction and destroying value.
- Diversify – investing in a moderate portfolio will give you exposure to many different holdings.
- Start as soon as you can – Rule of thumb: save at least 15% of your gross salary for 40 years before retirement.
Now, to implement the Plan
The biggest mistake is not having a holistic plan setting out your goals at retirement, which then needs to be matched with the appropriate risk-adjusted investment returns. At Investonline, we will model a detailed financial plan for you considering your goals, tax efficiencies and estate planning:
Personal financial planning
- We offer comprehensive and knowledgeable financial advice and holistic financial planning.
- We use the best financial planning tools, fund analysis tools and investment calculators.
- We keep up to date with the latest financial planning strategies by attending seminars and training courses to stay abreast of changes in the financial services industry to provide the best and most relevant financial advice.
Personal client portfolio management
- We assess your investment goals, requirements and risk tolerance.
- We continuously monitor your investment portfolio and ensure that you are invested in the most appropriate assets to meet your investment goals and risk tolerance.
- We personally discuss your investment with you on a regular basis and recommend any changes that we feel will be most appropriate and beneficial to you.
- We keep up to date with the latest thinking and changes of the fund managers by:
- Attending various fund manager presentations monthly with asset managers such as Allan Gray, Coronation, Nedgroup Investments and Foord.
- Meeting selected fund managers every 1 to 2 months which allows us to stress test our investment views directly with an independent investment professional.
Client service
- You have 24/7 online access to login to your own online account.
- You will receive bi-monthly newsletters from the Investonline team with updated market views, fund performances and important changes in the industry.
- You have access to your own personal Client Portfolio Manager at any time during working hours, to advise you further on your investment or financial planning needs.
- You have access to a dedicated client services team to assist with any administration or paperwork that may be required.
Please click here to contact an Investonline Advisor.