What do you do when you retire and have only so much money to live with for the rest of your life ? This is an easy question but it does not have an easy answer.
Here are some of the solutions your Financial Adviser will give you. Yes those guys with the thick glasses and the laptops (or nowadays a Pad). This of course is to make sure you understand they know exactly what your dilemma is. Your dilemma is of course you have this stash of money that they will want to invest for you so that you will get at least 8 to 10% per Year income and they will get a fair chunk in commission. Let me be very clear on this point : There is nothing wrong with commission - it is their salary. The amount they get vs the advice you get is where the problem most of the time lies. But that is not the problem here.
They will advise you to invest and let us for argument sake say that you have the best adviser in the market and you get to get 12% per year on an ongoing basis. Let us say you were earning around R 50k per month and your pension payout is R3million after all costs and taxes. This will now give you R30 000 per month before tax. This will roughly nett you R 25k per month. Not bad heh?
Of course this is about half of what you were used to.
Now here is something else to consider :
Why not start your own business ? You can easily double that and have some change.
There are only a few teeny weeny problems but for someone with your acumen and knowledge these are so small it is negligible. How difficult is it to draft a business plan , register a company , make sure all legal requirements are in place ( there is only about 17 of these) , do marketing ( you are an expert at marketing are you not ?), set up shop somewhere , get the right staff and bob's your uncle _ Whola you are now getting 24% return on your investment !
OF COURSE IF ENTREPRENEURSHIP WAS THAT EASY WE WILL ALL BE ENTREPRENEURS WON'T WE ?
If you had the opportunity to become a business owner and earn around 24% per year without all the hastles of running the business and be trained (costs included ) in the process to really , really run a very effective business would you be interested?
Details available upon request : john@brandow.co.za or phone me on 082 222 5002
Here are some of the solutions your Financial Adviser will give you. Yes those guys with the thick glasses and the laptops (or nowadays a Pad). This of course is to make sure you understand they know exactly what your dilemma is. Your dilemma is of course you have this stash of money that they will want to invest for you so that you will get at least 8 to 10% per Year income and they will get a fair chunk in commission. Let me be very clear on this point : There is nothing wrong with commission - it is their salary. The amount they get vs the advice you get is where the problem most of the time lies. But that is not the problem here.
They will advise you to invest and let us for argument sake say that you have the best adviser in the market and you get to get 12% per year on an ongoing basis. Let us say you were earning around R 50k per month and your pension payout is R3million after all costs and taxes. This will now give you R30 000 per month before tax. This will roughly nett you R 25k per month. Not bad heh?
Of course this is about half of what you were used to.
Now here is something else to consider :
Why not start your own business ? You can easily double that and have some change.
There are only a few teeny weeny problems but for someone with your acumen and knowledge these are so small it is negligible. How difficult is it to draft a business plan , register a company , make sure all legal requirements are in place ( there is only about 17 of these) , do marketing ( you are an expert at marketing are you not ?), set up shop somewhere , get the right staff and bob's your uncle _ Whola you are now getting 24% return on your investment !
OF COURSE IF ENTREPRENEURSHIP WAS THAT EASY WE WILL ALL BE ENTREPRENEURS WON'T WE ?
If you had the opportunity to become a business owner and earn around 24% per year without all the hastles of running the business and be trained (costs included ) in the process to really , really run a very effective business would you be interested?
Details available upon request : john@brandow.co.za or phone me on 082 222 5002
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