Working For The Retirement Man

Retirement - is it just a fantasy of regurgitated processed culture handed down to us from an era passed?

Fantasy [fan-tuh-see, -zee] (n): The power or process of creating mental images as a daydream in response to psychological needs.

I mean, who wants to work for The Retirement Man - having to spend most of our days sitting in a cubicle, day in, day out eating leaves in brown paper bags and now the 'no straw' H2O. Just add water for lunch.

Everyone, everything, everybody from magazines to books to websites and social media... and let's not for forget your friendly artificial intelligent robo advisor offer "tip of the iceberg" tips. These "gurus" all claim that their advice makes it possible to work for The Retirement Man: "All you have to do is find a way to live on 25 percent of your income and save the other 75 percent"

In theory, this lifestyle choice may seem doable, even desirable, but is it sustainable? Would one be able to live in the present when life 'left jabs' and makes us pull back? What skills do we need to rely on?

Firstly: Plan to adopt an attitude of gratitude and shift your mindset. Gratitude creates solutions and is contagious!

The meaning of wealth comes from the Old English words "weal" (well-being) and "th" (condition) which taken together means "the condition of well-being". To be genuinely wealthy, one must develop a system that aligns one's values and principles with the actual conditions of one's well-being (personal, professional, spiritual, environmental, and financial). Understanding the who's, what's, needs and goals that drive us all - is one of the first steps of being wealthy.

Secondly: Invest with smart planning. Before investing, we believe that with a disciplined goal orientated financial planning strategy focusing on personal, family and work-related goals, financial "wealth" can be attained. These time-tested steps can help you achieve a retirement that meets your "holistic" financial planning goals.

• Step 1: Don't be stupid: Save for those emergencies
• Step 2: Go on holiday - NOW!
• Step 3: Don't get in trouble with the boring 65-year-old: Save 15% of all income
• Step 4: Don't pay SARS more money at retirement: Set up tax free retirement fund
• Step 5: Bonus money: Save 27.5% for retirement / 36.25% reduce debt / 36.25% for fun goals
• Step 6: Dreams are goals not planned for: Save for them
• Step 7: Oh no - the retiree gets some more of surplus income: Allocated to match retirement income need.
• Step 8: Just in case - Invest rest directly offshore (Minimum offshore asset allocation should be 30%)

Thirdly: Understand the magic of investing. When magicians perform they often draw your eyes away from the simple sleight of hand or hidden trapdoor that makes the trick. This skill is called 'The Prestige': without it, tricks often fail to captivate. Tricks can be entertaining but in the world of investing it is much better to rely on the mundane. Thandi Ngwane explains the wonderful but boring 'magic' of investing. Follow these five investment principles and give yourself the potential to experience the 'magic' first-hand:

1. Start with a plan
2. Earn returns that are higher than inflation
3. Avoid switching, which involves predicting what you think will happen in the future
4. Diversify - in a meaningful way
5. Start as soon as you can

Our integrated wealthcare approach is based on your personal priorities and aspirations. This process is designed to give you a clear course of action for pursuing your goals that span various time horizons and life stages to empower you to do extraordinary things with your wealth, both now and in the future.

I look forward to talking with you again soon.

Regards,

Shane Thom, CFP^® GTP(SA)™
Managing Partner: Integrated Wealthcare Advisor