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Retirement
pyrex
#1 Posted : Tuesday, September 18, 2018 2:01:39 PM
Rank: Member


Joined: 12/11/2006
Posts: 14
Hi wazuans, is it possible to save consistently in a Sacco for retirement purposes
XSK
#2 Posted : Tuesday, September 18, 2018 2:25:33 PM
Rank: Veteran


Joined: 12/8/2009
Posts: 972
Location: Nairobi
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!
obiero
#3 Posted : Tuesday, September 18, 2018 2:54:23 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,463
Location: nairobi
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 428,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
Thiong'o
#4 Posted : Tuesday, September 18, 2018 2:57:22 PM
Rank: Member


Joined: 10/14/2011
Posts: 661
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
MugundaMan
#5 Posted : Tuesday, September 18, 2018 4:23:51 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
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.
Angelica _ann
#6 Posted : Tuesday, September 18, 2018 4:42:12 PM
Rank: Elder


Joined: 12/7/2012
Posts: 11,901
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
Ebenyo
#7 Posted : Tuesday, September 18, 2018 5:24:43 PM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,996
Location: Kitale
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
Ericsson
#8 Posted : Tuesday, September 18, 2018 5:27:23 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,626
Location: NAIROBI
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
MugundaMan
#9 Posted : Tuesday, September 18, 2018 5:40:02 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
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.



Laughing out loudly Laughing out loudly Laughing out loudly

I hope you do not mean our local casino called the NSE hapa Kiinya Laughing out loudly

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.
obiero
#10 Posted : Tuesday, September 18, 2018 5:55:56 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,463
Location: nairobi
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.



Laughing out loudly Laughing out loudly Laughing out loudly

I hope you do not mean our local casino called the NSE hapa Kiinya Laughing out loudly

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 428,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
MugundaMan
#11 Posted : Tuesday, September 18, 2018 6:23:06 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)

Smart man Applause I am planning on gambling on a few bargains as the market scrapes bottom but no way will I go beyond 2%
Swenani
#12 Posted : Tuesday, September 18, 2018 7:25:05 PM
Rank: User


Joined: 8/15/2013
Posts: 13,236
Location: Vacuum
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?
Ebenyo
#13 Posted : Tuesday, September 18, 2018 8:40:05 PM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,996
Location: Kitale
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.



Laughing out loudly Laughing out loudly Laughing out loudly

I hope you do not mean our local casino called the NSE hapa Kiinya Laughing out loudly

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
madhaquer
#14 Posted : Tuesday, September 18, 2018 8:44:51 PM
Rank: Member


Joined: 11/10/2010
Posts: 281
Location: Nairobi
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.
MugundaMan
#15 Posted : Tuesday, September 18, 2018 9:15:09 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
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?Laughing out loudly
How much is someone who invested 80,000 kshs on 40 of acres of land from outgoing Kaburus in Limuru in 1963 worth?
Xymalos
#16 Posted : Wednesday, September 19, 2018 12:27:52 AM
Rank: New-farer


Joined: 2/14/2015
Posts: 97
Location: Kenya
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).
Superprime1
#17 Posted : Wednesday, September 19, 2018 10:28:52 AM
Rank: Member


Joined: 5/2/2018
Posts: 267
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/
Ebenyo
#18 Posted : Wednesday, September 19, 2018 6:59:27 PM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,996
Location: Kitale
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
Ebenyo
#19 Posted : Wednesday, September 19, 2018 7:14:01 PM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,996
Location: Kitale
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?Laughing out loudly
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
MugundaMan
#20 Posted : Wednesday, September 19, 2018 7:34:02 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
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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