Investing can be scary, but it's also a great way to build wealth and provide for yourself and your family. If you're feeling lost about where to start, consider these five investments.
Plan for retirement
A common mistake people tend to make is thinking of their retirement as something that is still far away. However, the years fly past and soon we are faced with a retirement that has no financial stability which could be a burden to us and our family.
If you have already started looking into ways you can comfortably retire in South Africa, you will come across a general rule of thumb that states that you need to have at least 75% of your final salary saved. Remember that what you retire on will be what sustains you when you no longer have a means of earning an income. It will help you pay for your house, car, medical bills, living expenses and more. Therefore, choose a retirement plan that will consider these factors.
Invest in good education plans
Choosing a reliable education plan can either make or break your child's journey to getting the quality education that can benefit them for life. Consider mapping your way in terms of whether you would like to go the public or private education route. Speaking to a financial advisor can also assist in choosing a plan that is sustainable for your current financial situation. You can also learn more on how to choose a reliable education plan here.
Invest in life insurance
One thing that should be part of your financial planning for the year is having financial safety nets that can be there for your loved ones when they need it the most. Many people don't realize how valuable life insurance is as an investment because it's often viewed as a necessary evil - something you have to buy but never want to spend any time thinking about.
But there are some good things about buying life insurance that are worth considering: it's among the best investments you can make with your money because it grows tax-free while paying out death benefits over time (thus helping take care of your family if something happens to you). It also offers means for your loved ones to continue living the life they have been used to without having to worry about debt, educational payments or the paying off of a house.
Invest in your health
Investing in your health can help you live longer, be more productive and feel better. In fact, there are many ways for you and your family to invest in your healthcare needs—and these investments can be as simple as buying a gym membership or creating a meal plan at home, having medical aid and having disability cover to name a few. You could also consider paying for preventative care services such as regular check-ups with a doctor, which can help identify issues early on so they never become serious problems later on.
Income protection
Not being able to earn an income can be stressful, especially when it is because of an injury or illness. Having income protection cover will help you by paying out between 50-75% of your income. It can also come in handy when it comes to keeping you and your loved ones afloat until you are able to return to normal.
