INVESTING
To avoid this scenario , we need to consider the rule of 72 , which states that if we divide the inflation rate into 72 , we will get the number of years it will take for our buying power to be cut in half . Therefore , to grow our portfolio in real terms , we need to achieve a minimum portfolio growth of 6.9 % per annum on our cash . This means we need to invest in an asset class that can deliver at least an additional 6 % per annum , giving us a minimum of 12.9 % p . a .
According to actuarial experts , we need to plan for at least ten more years after retirement age as one person in every couple that reaches 50 years of age will live up to 90 years old . Hence , it is crucial to choose investments that not only protect and grow our capital but also provide higher than inflation income growth . Investing in asset classes that fail to achieve these objectives could lead to a drop in the buying power of our money , especially during old age when we cannot do much to rectify the situation .
Fortunately , Wealth Assist is here to help its clients avoid such a bleak future . Wealth Assist provides clients with expert investment advice and guidance to help them make informed investment decisions . Wealth Assist understands the importance of investing and offers tailor-made investment solutions that are specific to each client ' s unique financial goals and risk appetite .
How to start your investment journey . Financial freedom means having enough money to live the life you want without worrying about money . However , the key to financial freedom is taking full responsibility for your financial decisions . Your income and expenses every month form your personal economy , and it ' s important to use that to build a personal balance sheet .
To start building your personal asset portfolio , you can use your paycheck as the channel for investing in different asset classes that allow you to link your personal economic system to an income-generating asset . Wealth-building assets , like owning a business , property , livestock , or personal education , are better investment options than just building equity portfolios with cash .
59 APRIL / MAY 2023 SA Real Estate Investor Magazine