Columnists Features

Have you planned for your retirement?


TO CURB the high numbers of senior citizens (retirees) becoming destitute in Africa, there is need to make pension contribution mandatory for every employer and I believe it is essential to sensitise the public regarding the benefits of saving into a pension scheme and improve people’s financial capacity. It is also biblical and true that a worker should plan for the future after retirement.

The Bible makes it clear that it is wise to work hard and plan ahead for the future. Do not be caught unaware because you failed to plan ahead. If you plan on retiring from your chosen profession someday, make sure you plan ahead and invest for retirement!

Proverbs 13:16: A wise man thinks ahead; a fool doesn’t, and even brags about it!
The Bible in Proverbs 21:20, says: “The wise store up choice food and olive oil, but fools gulp theirs down”. This entails that we should save up for a rainy day, putting your money to work and multiplying it is a wise thing to do. Whether you like it or not that monthly cheque will one day stop coming to your salary account and what happens thereafter? It is against this background that auto enrolment on pension or personal pension savings using insurance firms should cut across all workers right from the month of their first engagement in an organisation.
Let me get a leaf from principles employed by Warren Buffet, one of the richest investors in the world. He believed in savings for the future and he has made it big. Without any doubts, the man walks the talk and he is a master showpiece of success.
Most people, if asked about their financial goals, would instantly say they want to be rich, or to have the financial freedom of being able to buy or pay for anything their heart desires during or after their employment life, and yet or sadly, saving is rarely on the top of their list, if there at all, then it is relegated to a wish.
Investor Warren Buffett himself strongly believes in the value of saving, despite having billions of dollars to his name. We may pick up a pointer or two from one of the world’s richest men. This week, we will look at the two pointers arising from investor Warren Buffet’s principles on savings.
1. Be careful with your investments: Buffett has been quoted as saying that the first rule of investing is to “not lose money”. The billionaire has placed so much emphasis on this rule of investing, that his second rule is “not to forget rule number one″. Do not get into debt unless you are absolutely sure that you can profit later on.
2. Do what you love: Another tip from Buffett is to do something you love. Only then can you find satisfaction from work or your job. If it’s not so easy to just pack up and quit your current job, why not make a hobby out of what you love doing? And maybe try making just a little money out of it? Pursuing your passion can bring lots of fulfilment and that is something no amount of money can buy.
I challenge you not to remain behind but rise to the challenge and start saving for the future. Life is a gift from the Almighty God and should not just be enjoyed during your working time but you should continue enjoying life even during your retirement period with Grandchildren whilst having memorable moments and stress free life.
Mukuyu Growth Investment Fund is one of the available outstanding investment engines on the market which can address our savings for the rainy day. Following up last week’s article, the following are some of the benefits for the above investment funds.
1. Specialisation: Mutual funds such as the Mukuyu have separate companies that do fund management while others are specialised in investment. The specialisation creates separation of duties, which ultimately secures your funds and helps with value addition. The fund has identified the strengths of each investment manager company and allocated them a unit trust according to their strengths identified.
2. Enrolling is easy: There is no cost at all involved in starting to invest in the fund.
3. No hidden costs: There are no hidden costs other than what will be disclosed to you before you sign the application form.
4. Cost efficient: All investors share the cost of running the fund proportionately, thereby fundamentally reducing the annual fund expenses. As a result, cost per unit reduces as volume increases. This is an advantage that adds value to all investors in the fund.
5. Comparison of results: Being a fund that uses a system of multiple investment managers to manage the investment function of the respective unit trusts in the fund, investors can compare returns achieved by the different unit trusts. This helps the investors to make a switch of investment products as it suits them.
6. Allows innovation: The existence of more than one investment manager in the fund leads to healthy competition among investment managers, which leads to innovation. The investment managers’ innovations ultimately benefit the investors.
7. Fees are competitive: The investment fees are competitive as investors can compare the fees charged by the different unit trusts managed by different investment managers.
There are two investment products in the Mukuyu; the Alpha and Omega. The investment portfolios in the Omega are a mirror of those in the Alpha except that they are managed by different investment managers.
Next time, we will look at other investment engines being offered by various insurance schemes in the country.
The author is a human resources practitioner and pension advisor.


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