Rank: Member Joined: 12/11/2006 Posts: 14
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Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes
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Rank: Veteran Joined: 12/8/2009 Posts: 975 Location: Nairobi
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pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes I think its possible but is it the most efficient way to grow your retirement war chest? There are better ways You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
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Rank: Elder Joined: 6/23/2009 Posts: 13,501 Location: nairobi
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XSK wrote:pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes I think its possible but is it the most efficient way to grow your retirement war chest? There are better ways Especially with recent collapses of saccos. Heart attacks are never far apart from the sacco movement
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 10/14/2011 Posts: 661
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obiero wrote:XSK wrote:pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes I think its possible but is it the most efficient way to grow your retirement war chest? There are better ways Especially with recent collapses of saccos. Heart attacks are never far apart from the sacco movement like mutual funds http://www.wazua.co.ke/f...spx?g=posts&m=706053
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes If you can wait 60 years earning single digit interest and your sacco does not collapse ad interim, sure it can work. However, Nobody ever achieved financial independence (which is basically a euphemism for retirement) before age 40 by saving without serious, radical risk taking. But then again financial independence is relative and time more important than money but those are stories for another thread and day.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Don't rely on your current savings to support you in retirement. You MUST invest and have different streams of income (and lose money in the process) for your days in retirement. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes Sacco is a good place to save but the returns their are not robust enough to help you for retirement. Retirement needs good and consistent returns over time that beat inflation in the long run. I will advise that instead of a sacco,consider to save into the following diversified mix: 1.Stocks 2.Bond 3.Real estate Depending with your age,put 55% of the funds into stocks,25% into bonds and 20% into real estate.This way you cushion yourself from risks. Assuming you are below 40,do this for the next 20 years and you will retire at 60 very comfortably. Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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Ebenyo wrote:pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes Sacco is a good place to save but the returns their are not robust enough to help you for retirement. Retirement needs good and consistent returns over time that beat inflation in the long run. I will advise that instead of a sacco,consider to save into the following diversified mix: 1.Stocks 2.Bond 3.Real estate Depending with your age,put 55% of the funds into stocks,25% into bonds and 20% into real estate.This way you cushion yourself from risks. Assuming you are below 40,do this for the next 20 years and you will retire at 60 very comfortably. @Ebenyo You can make a very good retirement planner. Continue sharing such information here. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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Ebenyo wrote:pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes Sacco is a good place to save but the returns their are not robust enough to help you for retirement. Retirement needs good and consistent returns over time that beat inflation in the long run. I will advise that instead of a sacco,consider to save into the following diversified mix: 1.Stocks 2.Bond 3.Real estate Depending with your age, put 55% of the funds into stocks,25% into bonds and 20% into real estate.This way you cushion yourself from risks. Assuming you are below 40,do this for the next 20 years and you will retire at 60 very comfortably.  I hope you do not mean our local casino called the NSE hapa Kiinya I would NOT recommend anyone put more than 1 to 2% of their net worth in the Casino. Sparky should chip in here. He and double A were jumping up and down hapa in a paroxysm of glee because my Neveready tanked to below 1 bob. Guys are getting shaved alive in the current bear market. Even blue chip powerhouses like ICDC! Woe to them if they are 55% locked in! At least with migundas no chance whatsoever of such scenarios in a developing economy with a massive supply deficit.
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Rank: Elder Joined: 6/23/2009 Posts: 13,501 Location: nairobi
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MugundaMan wrote:Ebenyo wrote:pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes Sacco is a good place to save but the returns their are not robust enough to help you for retirement. Retirement needs good and consistent returns over time that beat inflation in the long run. I will advise that instead of a sacco,consider to save into the following diversified mix: 1.Stocks 2.Bond 3.Real estate Depending with your age, put 55% of the funds into stocks,25% into bonds and 20% into real estate.This way you cushion yourself from risks. Assuming you are below 40,do this for the next 20 years and you will retire at 60 very comfortably. I hope you do not mean our local casino called the NSE hapa Kiinya I would NOT recommend anyone put more than 1 to 2% of their net worth in the Casino. Sparky should chip in here. He and double A were jumping up and down hapa in a paroxysm of glee because my Neveready tanked to below 1 bob. Guys are getting shaved alive in the current bear market. Even blue chip powerhouses like ICDC! Woe to them if they are 55% locked in! At least with migundas no chance whatsoever of such scenarios in a developing economy with a massive supply deficit. The maximum I would personally put into stocks would never exceed 10% of my net assets, at any age.. With more focus towards defensive dividend mature stocks as I progress in age
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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Smart man  I am planning on gambling on a few bargains as the market scrapes bottom but no way will I go beyond 2%
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes YOLO Your kids are your retirement plan. If they all turn out to be failures, the GoK of Kenya through the taxes you were paying while being productive will provide you with a safety net through one of the many programmes(cash transfers to the old, poor, disabled etc). Moreover, after retirement(approximately 65 yrs old), you will most likely die within 20yrs. Kula maisha na kijiko kubwa, tomorrow will sort out itself If Obiero did it, Who Am I?
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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MugundaMan wrote:Ebenyo wrote:pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes Sacco is a good place to save but the returns their are not robust enough to help you for retirement. Retirement needs good and consistent returns over time that beat inflation in the long run. I will advise that instead of a sacco,consider to save into the following diversified mix: 1.Stocks 2.Bond 3.Real estate Depending with your age, put 55% of the funds into stocks,25% into bonds and 20% into real estate.This way you cushion yourself from risks. Assuming you are below 40,do this for the next 20 years and you will retire at 60 very comfortably. I hope you do not mean our local casino called the NSE hapa Kiinya I would NOT recommend anyone put more than 1 to 2% of their net worth in the Casino. Sparky should chip in here. He and double A were jumping up and down hapa in a paroxysm of glee because my Neveready tanked to below 1 bob. Guys are getting shaved alive in the current bear market. Even blue chip powerhouses like ICDC! Woe to them if they are 55% locked in! At least with migundas no chance whatsoever of such scenarios in a developing economy with a massive supply deficit. When it comes to returns over a long term horizon,stocks beat all other options hands down. Someone who invested in NSE in 60s and 70s wisely,is now very rich indeed. BAT,EABL,NMG,BAMBURI,STANDARD and BARCLAYS were all trading at below kshs 10.They were blue chips of those days and very profitable.Its like SAFARICOM,KCB,EQUITY today. Towards the goal of financial freedom
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Rank: Member Joined: 11/10/2010 Posts: 281 Location: Nairobi
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By all means use the sacco.
But use it to leverage your future investment plans. Get into a decent professionally run sacco save enough to fund your investments into real estate or business development.
Remember even while paying off that loan, your savings still earn you some interest.
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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Ebenyo wrote:
When it comes to returns over a long term horizon,stocks beat all other options hands down.
Someone who invested in NSE in 60s and 70s wisely,is now very rich indeed.
BAT,EABL,NMG,BAMBURI,STANDARD and BARCLAYS were all trading at below kshs 10.They were blue chips of those days and very profitable.Its like SAFARICOM,KCB,EQUITY today.
On what planet? How much is someone who invested 80,000 kshs on 40 of acres of land from outgoing Kaburus in Limuru in 1963 worth?
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Rank: New-farer Joined: 2/14/2015 Posts: 97 Location: Kenya
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pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes Saving consistently is a good strategy for retirement. Saving in Sacco is great if you are saving to buy/finance other retirements investments e.g., real estate (land, apartment, houses, construction etc).
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Rank: Member Joined: 5/2/2018 Posts: 267
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pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes @pyrex, don't just save, you must invest. You must take risk. No two ways about it. This here may help you and many of us understand a bit, or a little more: The Psychology of Money https://www.collaborativ...the-psychology-of-money/
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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Ericsson wrote:Ebenyo wrote:pyrex wrote:Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes Sacco is a good place to save but the returns their are not robust enough to help you for retirement. Retirement needs good and consistent returns over time that beat inflation in the long run. I will advise that instead of a sacco,consider to save into the following diversified mix: 1.Stocks 2.Bond 3.Real estate Depending with your age,put 55% of the funds into stocks,25% into bonds and 20% into real estate.This way you cushion yourself from risks. Assuming you are below 40,do this for the next 20 years and you will retire at 60 very comfortably. @Ebenyo You can make a very good retirement planner. Continue sharing such information here. Thanks for the compliments @Ericson.May the spirit of wazua of learning and sharing live forever. Towards the goal of financial freedom
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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MugundaMan wrote:Ebenyo wrote:
When it comes to returns over a long term horizon,stocks beat all other options hands down.
Someone who invested in NSE in 60s and 70s wisely,is now very rich indeed.
BAT,EABL,NMG,BAMBURI,STANDARD and BARCLAYS were all trading at below kshs 10.They were blue chips of those days and very profitable.Its like SAFARICOM,KCB,EQUITY today.
On what planet? How much is someone who invested 80,000 kshs on 40 of acres of land from outgoing Kaburus in Limuru in 1963 worth? I believe i will be rich through Nairobi securities exchange.I own shares in Safaricom,Kcb,kenolkobil,kenya re and some other good companies.This is my route.My first shares were safaricom ipo which i later sold at a loss cause i didnt knew anything about shares.I started again afresh in 2015 still green but with passion.Luckly bumped into this site in 2016 and i have really made much progress.I now hold for long term and i know i will be rich in 15-20 years.This is why i give advise because i believe in stocks. Towards the goal of financial freedom
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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Ebenyo wrote:
I believe i will be rich through Nairobi securities exchange.I own shares in Safaricom,Kcb,kenolkobil,kenya re and some other good companies.This is my route.My first shares were safaricom ipo which i later sold at a loss cause i didnt knew anything about shares.I started again afresh in 2015 still green but with passion.Luckly bumped into this site in 2016 and i have really made much progress.I now hold for long term and i know i will be rich in 15-20 years.This is why i give advise because i believe in stocks.
I hear you rafiki. The only problem with NSE in this here our Kiinya is that fraud and book-cooking is rampant and almost the norm hata among the blue chips and CMA is toothless about it. And the auditors are in collusion. Remember the Haco scandal? Now if a privately owned blue chip like that cooks books what about the public ones on the NSE in which the managers in many cases have no stake beyond their own perks? Look at Home Afrika which was a scam from day one. Kurwitu and several others which never trade even a single share. Collapsed ARM which was a big timer a mere decade ago. And the ones that got delisted - too many to name. And don't get me started in complete cooking done by HFCK and covered up by none less than CBK! Hii casino si mjezo my friend. 9 times out of ten even with a well diversified portfolio you can get shaved alive in the long run. The best bet is to buy only assets you have near total control over. When you leave your destiny in the hands of a nondescript NSE CEO you are literally playing Russian Roulette with your future.
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