The Personal Finance series with Warren Ingram

Retirement: 8 biggest mistakes people typically make…

What are the biggest money mistakes retirees typically make?

That is the question The Money Show’s Bruce Whitfield asked Galileo Capital Financial Advisor Warren Ingram, regular guest of the weekly personal finance feature.

Not having a tax efficient retirement strategy.

Solution:

A combination of retirement funds (and other funds, e.g. unit trusts and living annuities).

Continue contributing to a retirement annuity.

Tax Free Savings Accounts

Tax rebates for interest

Being too conservative with investments.

Solution:

Your assets need to last for another 25 to 35 years. There is a huge risk of outliving your money if investments don’t grow by more than inflation. You must have adequate exposure to growth assets such as shares and property.

Failing to appreciate the power of personal spending decisions.

Solution:

You have little control over market returns (or what Zuma does).

However, you do have control over your spending habits.

Have a budget and stick to it (and redo it annually, or when your circumstances change).

Supporting adult children.

Solution:

Manage your support very carefully; you have limited time and capital available to correct your financial position.

You must have these discussions with your children, otherwise they might be looking after you once your capital has run out.

Being over invested in your house.

Solution:

Ensure that your home is not your biggest asset (unless it is an income generating one).

Not creating an estate plan.

Solution:

Ensure you will and all your beneficiaries on your investments is up to date.

Understand the various investment vehicles (e.g. living annuities go straight to the beneficiaries and don’t form part of your estate).

Spending too much early in retirement.

Solution:

Control your expenses.

Balance your desire for travel or leisure activities with the need to preserve capital over your lifetime.

Not being on the same page as your spouse.

Solution:

You need to have common goals and an understanding of your financial position so that there is agreement on how money is spent.

Ensure that either party can manage finances in the event of one spouse passing away.

For more detail; listen to the interview in the audio below.

Click here (then “like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter


Recommended

by THE NEWSROOM

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
How to manage the income from your investments during retirement

How to manage the income from your investments during retirement

Returns are low, interest rates are dropping and politics are uncertain. Tips from personal finance guru Warren Ingram...

How to invest your retirement funds (in post-downgrade South Africa)

How to invest your retirement funds (in post-downgrade South Africa)

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

How to get out of your Retirement Annuity (RA)

How to get out of your Retirement Annuity (RA)

RA not doing well? Perhaps its fees are too high? You don’t have to stick it out!

Want to be rich in retirement? Why it's a no-brainer to use a retirement fund

Want to be rich in retirement? Why it's a no-brainer to use a retirement fund

5 reasons retirement funds rule (compared to the alternatives), according to Corporate Consultant Erhard Theunissen.

10 reasons why this is BY FAR the best way to save for retirement

10 reasons why this is BY FAR the best way to save for retirement

Is there a single best way to build your wealth so you can retire with dignity? Yes, there is, despite costs and limitations.

Popular articles
How Free State's Ace Magashule's family linked to Gupta companies #GuptaLeaks

How Free State's Ace Magashule's family linked to Gupta companies #GuptaLeaks

Revelations published today show how the premier's sons and Free State govt appear heavily involved in the Gupta-owned companies.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

'The university degree is dead'

'The university degree is dead'

Flux Trends founder Dion Chang gives five reasons why he believes getting a degree is past its sell by date.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?

5 ways the NSFAS funding model will change in 2017

5 ways the NSFAS funding model will change in 2017

The National Student Financial Aid Scheme (NSFAS) will pilot a new funding model in 2017. NSFAS chairperson Sizwe Nxasana explains.