You have to be clever to re­tire well

Finweek English Edition - - MONEY - How much you save! unit trust fund, which in­cludes shares, bonds, prop­erty and cash, lo­cally and off­shore. an­ced fund bal-

Put in a dif­fer­ent way, you have to earn a high re­turn to re­tire well. The most i mpor­tant de­ter­mi­nant of the size of your re­tire­ment cap­i­tal is It is not the re­turn. You should not try to make up for a lack of sav­ing by choos­ing al­lur­ing high-re­turn in­vest­ments.

In my ex­am­ple above, I used a 10% per an­num growth rate. This i s about 3% above the long-term av­er­age in­fla­tion rate in South Africa. This is also a sig­nif­i­cantly lower re­turn than al­most ev­ery sin­gle bal­anced fund would have given you over the past twenty years. Re­tir­ing i n com­fort i s achiev­able even i f you in­vest in a rel­a­tively bor­ing in­vest­ment such as a

Peter Lynch, one of the world’s most fa­mous fund man­agers, said that a

is the best in­vest­ment the man in the street can make.

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