Your needs and requirements will change as you move through the different stages of life.
Let's start with the BIG picture.
Your life can be split into 4 primary phases.
Each stage of life has special and specific needs. Take a look below.
(Concentrate your Attention)
(Organizing your Wealth)
(Securing your Wellness)
From a "Wealth" perspective, your life can be divided into 2 primary phases:
Pre-Retirement: - (Your Accumulation Phase)
In this part of your life, you earn an income which you then use to provide for your living expenses and lifestyle and hopefully you also allocate some of the income to your Savings.
Post-Retirement: - (Your Savings provide for your Lifestyle needs)
In this part of your life, you no longer have an income and your Savings then become responsible for providing you with an income for the rest of your lives.
Based on a FULL understanding of your and your family's needs and requirements, we then develop a tailor made plan for you, which will look something like this.
(The below is a case study and is for illustration purposes only.)
CASE STUDY :
The idea here is to illustrate the importance of having a strategy in place and to save methodically throughout your life. This may not be exciting or glamorous but it works.
The cumulative effect of compounding is on your side and will make a HUGE difference in the end.
- The 2 graphs to the right show the savings/accumulation and withdrawal wealth projection profiles of a person who is currently 25 years old.
- He/she will be saving 15% of their gross income annually for the full length of their working life.
- He/she retires at the age of 63.
- His intended replacement ratio is +-73.5% (i.e. the income provided by his savings in the first year of his retirement will be +-73.5% of his net income he/she was earning in the year before he/she retired.
- His/her savings are planned to last approximately until his/her age 90.
- Although this example is very simple, it is based on very real data and underlying returns & inflation assumptions.
- Saving 15% of your Gross Income is an approximation of the minimum required savings level recommended for the average household to reach financial independence. (this is based on a +-40 year accumulation period)
Believe it or not, less than 10% of people in the world get this right!!!
The outcome and benefits of your Planning.
You will be able to answer a number of critical questions such as:
- How much should I be saving right now and into the future?
- How much do I need to save in order to retire Financially Independent and Secure for the rest of my/our life?
- Am I currently on track to reach my financial Goals?
- What are the best ways for me to save?
- Do I need Risk cover and if so what type and how much?
- What Estate Planning should I be putting into place, based on my planning and wealth profile into the future?
- And many many other questions that you may have....