Millennial conversation on why you should start thinking and planning for your retirement!
#Thread
For most of us planning for our retirement is important but not urgent.
As humans, we have the tendency to focus on things that are urgent and pressing sometimes to the neglect of things that may not be urgent but are very important.
Retirement planning tends to fall in this category as we perceive it to be far off. However, it’s much closer than we think and we need to start taking it seriously.

Here are 3 reasons we should start planning/ investing for your retirement.
1. Reduced Financial Commitments!

A major reason why you should start planning for your retirement early is because the longer you wait the more money you’d have to set aside say per month to meet your goals. Let’s look at a real life scenario.
Take for example, two 25 year old friends both having similar aspirations of having one million cedis (GHS 1m) in their retirement accounts by age 60(retirement age).

Let’s assume a fixed rate of 15% p.a for the next 35 years and both commit to put some money aside monthly.
Friend X starts putting money aside monthly from age 25. From future value analysis he would have to put aside GHS 68.13 monthly till retirement to realize his GHS 1million dream at age 60. Now, lets look at friend Y!
Friend Y on the other hand decides to start at age 35 due to a reason or two. For him to also achieve the same GHS 1million on retirement, he would have to commit GHS 308.31 monthly.
Which is almost 5 times what his friend would have to on a monthly basis. Interesting right?
From the above, you’d realize that timing plays a key role i.e if you start early, you don’t have to commit so much as compared to if you started later. The time to start is NOW!🤝
#2
We can’t rely on our children!

You may have heard the adage that take care of your children and when they’re older they will in turn take care of you at your old age but i think we as young people it’s time we revisited the conversation that “our children will be our pension”
Take for instance current happenings where the youth are already struggling to earn a decent living.

Most of us are now finding our feet. Imagine as a parent on retirement and you having to put the burden on this child who’s already struggling with their own troubles.
I’m in NO WAY saying don’t take care of your family/parents! If the child can afford that awesome! However to avoid this scenario, we need to plan for our own retirement and be independent of our children and relieve them of that extra “burden”.

Let’s break the cycle! 🤝
#3.
Health costs at old age.

Don’t underestimate the health costs at old age. Other things being equal, your medical bills tend to increase with age. Remember at that time you may not have a company medical cover and you’d have to foot the bills yourself.
If you speak to people currently on Pension and relying on their SSNIT repayments most of them complain about how small their inflows are and how tough it is to live on these payments and having to add medical expenses to it.
In summary,

Don’t be passive about retirement. Some people don’t check on their SSNIT, Tier 2 and Provident Fund contributions if their employers actually make them and are prompt about it. Make time to check all of these and ensure your statements are up to date.
Also go beyond these “traditional” ones and INVEST for your retirement. If your self employed you can join some really master trust schemes as well.
Remember It’s either you CREATE the kind of retirement you want or you ACCEPT the type which shows up.

However, if you do not create the type of retirement you want, you would likely not enjoy the kind that shows up.

Cheers to happy retirement!
🤝
Remember to follow me and subscribe to my financial literacy YouTube channel. Thanks
🙏🏽

youtube.com/c/DesmondBredu
Just to clarify, the figures are based on future value of an ordinary annuity using monthly compounding for 35 and 25 years respectively. You can use a different interest rates at different compounding frequency . Bottom line is the earlier the better🤝

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with YouTube: Desmond Bredu

YouTube: Desmond Bredu Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @parlenzy77

7 May
TAKING A MORTGAGE IN GHANA!

This thread will focus on a general overview of mortgages (with specific examples relating to Ghana), tips when considering one and why you should take a mortgage if you can afford it.

Kindly RT and follow for more tips! 👊🏽

#Thread
A mortgage in simple terms is the arrangement where a bank/lending institution lends you funds at an agreed interest rate to buy or build a property(land, building). The property is used as collateral until you have fully paid up.
If you default, the bank/lending institution can repossess the property, and sell it to defray the outstanding loan balance.
Read 25 tweets
1 Feb
“Matters of the Heart and Pocket”

It’s finally February, the month of Love to the rescue, after a “very long year called January”. 14th February is 2 weeks away. The fuss associated with Valentines Day may sometimes lead to social pressures for some people. What to do? #Thread
Below are some financial and general tips for celebrating Valentines Day and any other special day or holiday.
...Matters of the pocket..

1. Save up.
If you’re looking to spend on valentines day each year then there should be a commitment to saving up, say on a monthly basis towards that occasion. It is more prudent to save towards it than hitting your one month income with that expense
Read 14 tweets
30 Jan
Financial independence is a journey and an important tool in achieving your goals is budgeting. Today we focus on #Budgets and the how to budget effectively. #Thread
Budgeting refers to creating a spending plan for your money which will help you determine in advance whether or not you’ll be able to have enough money to do the things you want to satisfy your needs. A budget can also be defined as a list of projected income & planned expenses.
“The 80/20 rule.”(Read more about the Pareto principle in maths).

This can be applied in budgeting to suggest that no matter your level of income you should save/invest at least 20%.

A key pointer to effectively do this is to “Save before you spend”.
Read 13 tweets
16 Jun 19
Investment Fundamentals! A thread!!!
Most people misconstrue savings and investment. Savings is just setting aside money you won’t spend now for emergencies or future expenditures. Investment is actually buying assets or securities for which you expect a return on these securities.
These securities may include: Equity/Stocks, mutual funds or unit trust, bonds, treasury bills, commercial papers, fixed deposits, real estate and the likes. I’d take time to explain some of these. Especially the common ones.
Read 29 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!