Nine rules of thumb for young investors

Adriaan Pask, Chief Investment Officer at PSG Wealth

An early start is at the heart of achieving sufficient financial resources for the lifestyle you desire for yourself and your family.

It gives your investments more time to compound and grow. Adriaan Pask, Chief Investment Officer, at PSG Wealth shares nine rules of thumb for younger investors who want to secure a strong financial future.

Rule 1: Plan to reach your 100th birthday
Many studies have found that advances in medicine, technology and overall quality of life have resulted in the average person’s lifespan increasing by about three years for every ten years that pass. By the time a person turns 85, they will therefore require additional savings to survive until the age of 105. However, the current pension system and retirement age in South Africa means that people tend to have less time to save enough for a longer retirement. The World Economic Forum expects a massive shortfall (US$80 trillion) in retirement funding among retirees globally by 2025 because many are underestimating how long they will live and how much money they will really need in retirement.

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