You have to be clever to retire well
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.