Always be aware of new products
A fitting end to this series of retiree interviews, is the story of a retired nurse (let’s call her Sue), whose investments, at last count, are around R8 million.
According to her, she knows very little about finances – but has a good gut feel. “I have worked hard for my money and treat it with respect. I believe in having a budget and paying myself first.”
So how did she get here?
She started soon
“I started saving at a very young age. When I began nursing my salary was R85 a month of which I saved R50 with subscription shares.”
She invested in property
Our retiree owns three properties. They built their current primary residence in Stilbaai, which they funded by the capital she received from selling shares in 2015 when the market was at its highest. In the early 2000s, she bought a freestanding house for R360,000. Today, it’s valued at around R2.7 million. In 2021 she bought her third property for R1.38 million cash. Both are rented out and managed by a third party.
She invested in more than one retirement product during her working years
“I currently receive a monthly annuity. This will end in about 4 years and then I will draw from my pension which is with PSG.”
She has many baskets (in many places)
In addition to her property portfolio and retirement products, she also has a share portfolio managed by FNB (which she started 20 years ago), shares through Satrix, a TFSA with Easy Equities, Satrix and Allan Gray, an emergency fund and GoalSave with Tyme Bank. (GoalSave is a free savings account linked to their EveryDay account. It rewards its clients with interest rates that increase the longer they save.) She also saves for her domestic helper and gardener with GoalSave and keeps them in the loop to show how their money is growing.
Most importantly, she’s a lifelong learner
“I listen to Moneyweb and receive the Just One Lap newsletter weekly.”
What can we take away from this success story?
Following personal finance best practices will pay off: Start soon, do your homework, diversify your investments, and stay in the know. New savings and investment products are continuously joining the ranks, offering competitive rates and solutions that can cater to specific individual needs.
Most importantly: Share your knowledge and enjoy the fruits of this exciting journey towards financial freedom – and this is right at the top of Sue’s priority list. She’s getting a new car soon and has two overseas trips booked for 2024. “My plan is to enjoy my retirement.” And we really can’t fault that.
Retire blog
Saving for retirement is the biggest investment most of us will ever make. Sadly, it can also be very complicated. In this monthly blog, Carina Jooste responds to common retirement questions, ranging from which products are best suited to different circumstances to efficient tax treatments.
