Good Morning 😃
My uncle was a high-ranking soldier in the military and my mum’s youngest brother.
Growing up, we all loved to be around him because he was very generous. Tell me, which child growing up does not like this kind of uncle?
In one of his visits during the festive season, we went to a nearby town to buy a gift for my mum as she was celebrating a landmark birthday.
As we were in the car on that trip, my uncle shared his retirement plans with me. Honestly, I didn’t expect this from my uncle, because all we knew about him was his spending ability.
He shared a quote that has stayed with me since then: “Retirement is wonderful if you have two essentials: much to live on and much to live for.” This particular incident happened in my early 20s, and it made me start thinking about investments.
Years later, it seems those things my uncle said then were true.
Here are the three regrets he shared with me:
- Waiting for too long to start saving
When you’re young, other priorities can seem more pressing than retirement, which could be 30 or 40 years from now. However, many people don’t realise that putting off retirement savings makes the achievement of their goals more challenging.
Delaying retirement savings often means settling for lower earnings. Consequently, you must compensate for the difference with additional personal contributions, and that means incurring long-term costs.
For instance, if your goal was to save N6.2 billion by age 65 with an expected average annual rate of return of 20%, you’d only need to save about N100,000 per month if you started at 30. However, if you waited until you were 40 to begin contributing to your retirement account, you’d now have to save around N800,000 per month to achieve a similar amount at retirement.
And if you think there’s no investment that can yield up to that, you’re mistaken. Ladda has just introduced the “High-Yield Real Estate (HYRE)” with a potential yield of up to 20% per annum for retail investors. If you’re not familiar, Ladda is our fintech subsidiary at MoneyAfrica. You can start with as low as N100,000. This is a great deal compared to seeking millions to buy land.
You can click this link to access this opportunity or send an email to sales@themoneyafrica.com
- Investing too conservatively when one is young
I have spoken with more than 1,000 clients through financial advisory services, and those who fall between 45 to 60 years of age express a wish that they had invested more in high-risk or high-reward investments, like stocks, when they were younger. This makes sense because when you’re young, you can afford to take more risks.
If your investments perform poorly in the short-term, that’s not always a significant concern because you may not need to use that money immediately. Often, your stocks will recover in time, and you’ll earn a profit over the long run.
Investing too conservatively isn’t as detrimental as taking too much risk. Rather, it is similar to putting off retirement savings, compelling you to set aside more money for retirement because you can’t rely as much on earnings.
- Dipping into retirement funds
He mentioned that, at one time, a friend told him about a lucrative investment that would be paying him 40% per month (in my mind, I said, “so pe o tilo”). Initially, he didn’t believe it, but after getting his first investment with promised returns, he sold some of his assets to invest in this amazing opportunity, and the rest, as they say, is history.
Tapping into your retirement for a suspicious investment or to alleviate short-term financial problems can create much bigger headaches over the long term. You’ll have to save more money going forward to get back on track, which can be challenging if your budget is tight.
As much as possible, build structures such as emergency funds that will help you avoid dipping into your retirement funds.
Everything my uncle said that day made sense to me years later, and I believe you should learn from my uncle’s story. More importantly, take advantage of the Ladda real estate opportunity by clicking this link. Don’t wait until you start narrating a sad story to younger generations to learn from.
That’s all for today. Until I come your way again next week, stay safe and spend wisely.
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