Don’t ignore your lack of, or ineffective retirement plan

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It is probable that you will live a third of your life without an income.

Sooner or later you will have to retire. Whether you are facing that reality today, in five or even 25 years, what we all have in common when we think about retirement, is whether we will have enough to survive. Typically, this produces a range of emotions, not least of which is anxiety particularly because we are or have been so absorbed and trapped in a cycle of consumerism or just making ends meet that we have not thought about the last third of our lives. Most people have no retirement plan in place, which means that future-proofing retirement is often pushed to a back-burner in the hope that their financial circumstances will improve sometime in the future.

Let’s look at three typical examples of how people generally approach their retirement.

CURRENT STATUS: Paying into a provident pension fund with no clear retirement plan.

THEY are a married couple in their 30’s, with two children. They both have professional degrees, earning a reasonable income and have been saving for their retirement through their company pension funds. They have also been spending money on liabilities such as a new car on credit, annual holidays, and using credit cards to support their month-to-month expenses. To the outside world they appear successful, but their spending habits are creating a massive problem for their future. They blindly assume that their pension funds will allow them to retain their standard of living on retirement. In reality, their income levels will drop by as much as 60%. They have not considered just what their joint living costs will be as a retired couple and have no retirement plan. They are essentially putting their heads in the sand.

CURRENT STATUS: Retirement plan non-existent

THEY are an engaged couple who already have one asset, their own home. Entrepreneurs with stable income, their vision for the future includes being wealthy, far beyond retirement. Despite their organised financial affairs, they do not yet have a retirement plan. They do however acknowledge the importance of having one and are seeking an investment vehicle that will secure their financial future into and beyond retirement. They are aware that property asset acquisition has helped more people to become Dollar millionaires than any other investment vehicle but lack the confidence and knowledge to enter the market.

CURRENT STATUS: Disposable income but no retirement plan.

HE is a businessman. He has a reasonable disposable income that is not always wisely spent. He understands that his purchase of a new luxury motorcar a year ago, has lost more than 30% of its value. He has witnessed several his friends’ businesses fall on hard times, many of whom had no other investment outside of their enterprises. Their circumstances have shocked him into investigating his own financial affairs as he does not want to find himself in a similar situation. He needs to start planning for his retirement immediately and is seeking investment opportunities with a good return. Property assets present as the best way for him to realise a stable passive income.

It is likely that you can relate to any one or even all of the aforementioned scenarios and may be feeling anxious about your financial status and future retirement.

What is important to understand is that you are not alone. Millions of South Africans find themselves the situation of not having adequate cover to retire in comfort or if they do have disposable income, it is wasted on buying liabilities. No matter your circumstances, your age, your shortcomings, or your current lifestyle and financial status, the solution is to become financially literate.

You need to take control and rescue your retirement before you make your situation any worse, and don’t further trap yourself by fear, which is a great paralytic. Knowledge is the key to moving past fear and the realisation of dreams. It is also the differentiator between retiring wealthy or eating baked beans because you run the risk of outliving your money.

So, what can you do about it?

The short answer is to understand how the wealthy have become rich. We are not talking about those with inherited wealth but self-made millionaires who are living the lives that you admire or want for yourself.

You may be surprised to learn, and history proves it, that the most financially rewarding investment portfolio, outside of traditional retirement plans that have helped people retire wealthy, is the acquisition of property and Buy-To-Let homes.

In the United Kingdom over 5.5-million people are classified as Buy-to-Let property investors. These are individuals who are either providing for or supplementing their pension through a portfolio of property assets, which pays them a monthly dividend in the form of rentals received from tenants. This is more commonly known as passive income because rental properties work 24/7 for the owners, which allows them to secure a decent, if not wealthy, retirement.

This is savvy investing, and the wealthy understand this. The wealthy do not depend on luck or winning the lotto but they do tend to heed advice and follow proven formulas and models for wealth building, like those around property investment.

Stephen Duggan, YoHome’s CEO did the latter. He reflects on his journey from very humble beginnings to his current status as a millionaire property investor. “I realised in my late 20’s that people from ordinary backgrounds like myself, were becoming incredibly wealthy by investing in Buy-To-Let properties. I invested in my first property asset at the age of 27, and over the past 19 years since, I’ve and bought and sold millions of dollars in property value.”

Stephen makes the point that with the right knowledge, focus, hard work, and determination, everyone has the same opportunity and capability to repeat the success he enjoys in their own lives. Stephen, who is passionate about Africa, its people and their upliftment inclusive of financial freedom, has made it his mission to share his knowledge about investing in property. He has done this by co-founding the property development company YoHome and also developed a FREE Property Investment programme: The YoHome Property Portfolio Blueprint: 4 Pillars to becoming a property investor and earning a passive income.

The YoHome Blueprint guides individuals to make wise property investment decisions that over time, allows them to build up a portfolio of Buy-To-Let properties that will yield a passive income. The YoHome Blueprint comprises four pillars: Access, Prepare, Acquire, and Accumulate.

What is passive income?

Passive income (which we discuss in our next article) is money earned with minimal activity through a variety of ventures which require little daily effort or upkeep on the individual’s part. Put simply, money that works for you.

Stephen explains that all you require is confidence and belief that you can transform your financial status. “You also need to be completely honest with yourself about your financial health, and to stop any further self-sabotage through fear and ignorance.”

The YoHome Blueprint is designed to provide you with all the information to secure a passive income, meaning that you can continue with your work commitments, however, with clever investing, over time this passive income should equal your monthly income ultimately even changing how or if you even need to work.


Where to from here?

“If you truly want to save yourself from retirement destruction and accumulate wealth enough to retire comfortably and maintain a good standard of living, you need to make decisions based on knowledge, and that requires a fundamental shift in thinking,” says Stephen.

“If you want to be successful, find someone who has achieved the results you want and copy what they do and you’ll achieve the same results.”– Tony Robbins, Life Coach.

The first step in getting started, is to get started. We recommend that you begin the process by using a retirement calculator that will give you a good idea of what you will require to meet your retirement/wealth goals. You can determine those needs by using The YoHome Retirement Calculator.

The YoHome Retirement Calculator.

Before you use The YoHome Retirement Calculator you must accept that it’s likely you have underestimated your retirement needs. It will tell you that you need to save more than you do or that you haven’t saved enough. Although you may feel disheartened by the result, bear in mind that you have already begun to take control by involving yourself in The YoHome Blueprint journey.

Once you have your result, you will have a clearly defined goal. As you progress along The YoHome Blueprint journey you may want to revisit the calculator. The results will be positively different each time, provided you are disciplined to make the changes necessary to manifest a Passive Income that will care for you and your future.

After reading this article, the first step under the ASSESS section of the YoHome Blueprint – you should understand the importance of planning ahead for your retirement. Although you will be working at a pace that suits you, you must remain determined to stay the course and be consistent in your actions. You are the only one who can change your life by taking responsible actions to secure your financial future. 

In the next article, the second step under the ASSESS section of The YoHome Blueprint we will discuss Passive Income and why it is they key to your financial success.


YoHome Calculator

Five key points

  • Acknowledge mistakes have been made but they are not insurmountable; it’s a matter of assessing where you are now and preparing to positively change that scenario.
  • Believe you can make the right decisions, and that you are taking control of your future by studying and applying The YoHome Blueprint principles.
  • Create realistic, concrete goals.
  • Break old destructive financial patterns.
  • Realise that property investing has helped more people become Dollar millionaires than any other form of investing. 

You can Like the YoHome Facebook Page and subscribe to our newsletter soon for much more information related to becoming a property investor.

Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. All content on this site is information of a general nature and does not address the circumstances of any individual or entity. YoHome is a professional property developer that advises you to consult with a professional before taking action and does not accept any liability from actions you take from following The YoHome Blueprint.