In order for Candidate B to achieve her goal of receiving R20 000 per month after tax in real terms, she would need to achieve a real return of 6% per annum pre-retirement a real return of 4% per annum postretirement.
At the moment she contributes approximately R3 000 per month toward the company retirement f und and she is a member of a retirement annuity and contributes R1 380 per month. The portfolio would continue until she reaches age 77.
Candidate B was advised to increase her monthly savings by at least R2 000 per month. This would mean that the portfolio would then continue until she is 82 years old. It was suggested that Candidate B invest these funds in a f lexible unit trust option as she has already used up her retirement annuity capacity.
A budget exercise was done, which demonstrated that although not easy, it was possible to save an additional R2 000 per month by making small sacrifices. These