How inflation affects your buying power
Let’s assume you are currently 35 years old and want to retire in 20 years time at the age of 55. You believe that, based on your monthly budget, you could easily survive on R10 000 per month. However, we understand that you will not 'buy' the same value for your R10 000 when you do retire in 20 years time, at age 55. Let’s assume that we have an average inflation rate of 8% per annum over the next 30 years. The million dollar question you need to ask yourself is: How much income will you need to maintain a reasonable standard of living in retirement? YEAR AGE TODAY'S INCOME REQUIRED INCOME 20 55 R10 000/m R47 000/m 30 65 R10 000/m R100 000/m 40 75 R10 000/m R218 000/m 45 80 R10 000/m R506 000/m To put the above
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LIVE ON EXPRESSO: Teaching Kids About Finance
Part 1 [embed]https://youtu.be/S1ingWiH4uE[/embed] Part 2 [embed]https://youtu.be/xQJUuHhbodw[/embed] Part 3 [embed]https://youtu.be/CHLhkkZhZrM[/embed]
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LIVE ON EXPRESSO: How to buy a car
Part 1 [embed]https://youtu.be/JRTBTdwxMn4[/embed] Part 2 [embed]https://youtu.be/0SUEajfTk68[/embed]
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