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Voluntary Exit Program (VEP)
Rank: Elder Joined: 9/23/2010 Posts: 2,218 Location: Sundowner,Amboseli
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maka wrote: Good morning fellow Wazuans It has been ages since I made a post here I hope everyone is ok. I need your help on this one  Someone is considering taking VER. This is the status of the said person; (1) Turns 50 in March this year thus can drawdown 100% of their PF. Total sum net of tax 13,500,000. (2) offer given by the company comes to another 4,400,000. (3) Has one sacco loan of 600,000. (4) No mortgage, no kids (zero school fees). (5) Lives in a rental house (30K rent) ... Has a house near Nairobi that is liveable and can be moved into at anytime. The person can also farm vegetables on the parcel of 2.5 acres. (6) Owns 2 acres of land valued at 6m, and another 1/8th valued at 800k thereabout. (7) Has fixed income securities that generate 112,000 PA. This is till 2023 when the principal amount will be reimbursed. (8) In terms of work there is very little room for upward progress in the next 10 years although it is 2 positions away from Director level ( a lot of corporate politics is in play here so this might ever happen). Should the said person keep working or take the offer. Asanteni @Maka, this is very encouraging looking at the investments your friend has made over the years. I would advise him to move the 13,500,000 to an Individual Pension plan and st retirement age to 60 years. Take the 4.4M and pay off the 600k sacco loan leaving your friend with a net of 3.8M Invest the 3.8M in money market funds(MMF). Move to the house near Nairobi and save 30k a month while utilising the 2.5 acres to plant fast growing vegetables for day to day income. Lease the other 2 acres at say 30k per month per acre to supplement his income from Veggies, Interest from T/Bond and MMF, and savings from not paying rent. I friend of mine is an 'expert' in Pension matters.You can drop your email here for her to send you simulations of your Pension performance over time. @SufficientlyP
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Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
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Sufficiently Philanga....thropic wrote:maka wrote: Good morning fellow Wazuans It has been ages since I made a post here I hope everyone is ok. I need your help on this one Someone is considering taking VER. This is the status of the said person; (1) Turns 50 in March this year thus can drawdown 100% of their PF. Total sum net of tax 13,500,000. (2) offer given by the company comes to another 4,400,000. (3) Has one sacco loan of 600,000. (4) No mortgage, no kids (zero school fees). (5) Lives in a rental house (30K rent) ... Has a house near Nairobi that is liveable and can be moved into at anytime. The person can also farm vegetables on the parcel of 2.5 acres. (6) Owns 2 acres of land valued at 6m, and another 1/8th valued at 800k thereabout. (7) Has fixed income securities that generate 112,000 PA. This is till 2023 when the principal amount will be reimbursed. (8) In terms of work there is very little room for upward progress in the next 10 years although it is 2 positions away from Director level ( a lot of corporate politics is in play here so this might ever happen). Should the said person keep working or take the offer. Asanteni @Maka, this is very encouraging looking at the investments your friend has made over the years. I would advise him to move the 13,500,000 to an Individual Pension plan and st retirement age to 60 years. Take the 4.4M and pay off the 600k sacco loan leaving your friend with a net of 3.8M Invest the 3.8M in money market funds(MMF). Move to the house near Nairobi and save 30k a month while utilising the 2.5 acres to plant fast growing vegetables for day to day income. Lease the other 2 acres at say 30k per month per acre to supplement his income from Veggies, Interest from T/Bond and MMF, and savings from not paying rent. I friend of mine is an 'expert' in Pension matters.You can drop your email here for her to send you simulations of your Pension performance over time. I think this would require a drastic cut in his/her lifestyle. Also, who is leasing land at 30K? I have some in rongai and would not mind leasing out at 30Kp.m If Obiero did it, Who Am I?
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Rank: Elder Joined: 9/23/2010 Posts: 2,218 Location: Sundowner,Amboseli
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@Swenani, trust me cost of living near Nairobi is far much lower than in core Nairobi. Have you factored in the fact that the friend will also possibly save on fuel and service expenses as they wont have to travel to the office daily. On the issue of leasing land, there are several agricultural companies that would be interested in land for farming near Nairobi. The friend can google Shabangu farms. They are always looking out for land. @SufficientlyP
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Rank: Member Joined: 5/15/2019 Posts: 669 Location: planet earth
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maka wrote: Good morning fellow Wazuans It has been ages since I made a post here I hope everyone is ok. I need your help on this one Someone is considering taking VER. This is the status of the said person; (1) Turns 50 in March this year thus can drawdown 100% of their PF. Total sum net of tax 13,500,000. (2) offer given by the company comes to another 4,400,000. (3) Has one sacco loan of 600,000. (4) No mortgage, no kids (zero school fees). (5) Lives in a rental house (30K rent) ... Has a house near Nairobi that is liveable and can be moved into at anytime. The person can also farm vegetables on the parcel of 2.5 acres. (6) Owns 2 acres of land valued at 6m, and another 1/8th valued at 800k thereabout. (7) Has fixed income securities that generate 112,000 PA. This is till 2023 when the principal amount will be reimbursed. (8) In terms of work there is very little room for upward progress in the next 10 years although it is 2 positions away from Director level ( a lot of corporate politics is in play here so this might ever happen). Should the said person keep working or take the offer. Asanteni @Maka, Take the money and run.The worst thing you can do on earth is listen to an employee's advice on what to do about retirement. Watakupoteza tu. That is like going to Satan and asking him to advise you on how to get to heaven. My advice; 1. (Most important) move into the house (I assume it is paid for no mortgage) YESTERDAY2. Pay off Sacco loan post haste. This will now leave you on good ground to manoeuver. 3. Weka ten of the 17,300,000 left into long term fixed income (10+ years per bond) as your income of last resort. 4. With the 7.3 build a decent maisonette on the 800k plot and rent out eventually 5. Farm the 2.5 +2.5 acres Hiyo tu. Anything less and you are in ti-rouble. Age 50 and still chasing wage slavery? Say a BIG no!!! Age and family mellows us all over time
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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Angelica _ann wrote:maka wrote:Swenani wrote:maka wrote: Good morning fellow Wazuans It has been ages since I made a post here I hope everyone is ok. I need your help on this one Someone is considering taking VER. This is the status of the said person; (1) Turns 50 in March this year thus can drawdown 100% of their PF. Total sum net of tax 13,500,000. (2) offer given by the company comes to another 4,400,000. (3) Has one sacco loan of 600,000. (4) No mortgage, no kids (zero school fees). (5) Lives in a rental house (30K rent) ... Has a house near Nairobi that is liveable and can be moved into at anytime. The person can also farm vegetables on the parcel of 2.5 acres. (6) Owns 2 acres of land valued at 6m, and another 1/8th valued at 800k thereabout. (7) Has fixed income securities that generate 112,000 PA. This is till 2023 when the principal amount will be reimbursed. (8) In terms of work there is very little room for upward progress in the next 10 years although it is 2 positions away from Director level ( a lot of corporate politics is in play here so this might ever happen). Should the said person keep working or take the offer. Asanteni Since the 4.4 M covers 27.5 months, this translates to a monthly salary of Kes 160,000(gross/net?) Also, how much do you have in savings bank and sacco? However, I would exit and focus on either of the three approaches 1. Takes @maka's advice by drawing down the PF 13.5M and buy bonds. Assuming a return of 9%. This would yield kes 1,215,000 p.a+112,000=1,327,000 which translates to a monthly income of Kes 110,583. The difference between your current pay and estimated income would come to kes 50K which can be offset off by moving to you own house(saving 30K) and the savings accruing from work related expenses(fuel, lunch etc) and use the remaining 4.4M for first year living expenses(which would be less considering your can grow some of your own food) and utilise teh remaining for any other investment opportunity that might arise. Continue servicing the sacco loan from your income 2. Depending with the location of your livable house, draw down the PF, pay sacco loan(200K-assumption is that you took x3 of your deposits) and consider putting up rentals pole pole. 3. Assuming your land is not strategic for rentals, sell the land(both 1/8 and 2.5 acres) and find a strategic plot for rentals(Kes 4-6M will do) and use the funds from PF, company offer to slowly build rentals. Any savings from the land sale should be used to cover the 1st year living expenses Thanks for this... The figure for bonds is actually a bit low, this months IFB will come in at around 12.20 - 12.50 net... Taking a value of 12% net that changes the calculation to 144,333 adding the other cash in Bonds. Thanks once again. Please include 10% tithe!!! Now that the Delilahs has known you are worth about 30M shillings, 80% of which is in hard cash, please avoid them...remember they speak the language of the snake! The prayer warriors like the one quoted above is double risky. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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amorphous wrote:maka wrote: Good morning fellow Wazuans It has been ages since I made a post here I hope everyone is ok. I need your help on this one Someone is considering taking VER. This is the status of the said person; (1) Turns 50 in March this year thus can drawdown 100% of their PF. Total sum net of tax 13,500,000. (2) offer given by the company comes to another 4,400,000. (3) Has one sacco loan of 600,000. (4) No mortgage, no kids (zero school fees). (5) Lives in a rental house (30K rent) ... Has a house near Nairobi that is liveable and can be moved into at anytime. The person can also farm vegetables on the parcel of 2.5 acres. (6) Owns 2 acres of land valued at 6m, and another 1/8th valued at 800k thereabout. (7) Has fixed income securities that generate 112,000 PA. This is till 2023 when the principal amount will be reimbursed. (8) In terms of work there is very little room for upward progress in the next 10 years although it is 2 positions away from Director level ( a lot of corporate politics is in play here so this might ever happen). Should the said person keep working or take the offer. Asanteni @Maka, Take the money and run.The worst thing you can do on earth is listen to an employee's advice on what to do about retirement. Watakupoteza tu. That is like going to Satan and asking him to advise you on how to get to heaven. My advice; 1. (Most important) move into the house (I assume it is paid for no mortgage) YESTERDAY2. Pay off Sacco loan post haste. This will now leave you on good ground to manoeuver. 3. Weka ten of the 17,300,000 left into long term fixed income (10+ years per bond) as your income of last resort. 4. With the 7.3 build a decent maisonette on the 800k plot and rent out eventually 5. Farm the 2.5 +2.5 acres Hiyo tu. Anything less and you are in ti-rouble. Age 50 and still chasing wage slavery? Say a BIG no!!! Age 50 and no biological children is a red flag...the numerous mamasitas in your life will soon arrange to exterminate you! Get a couple of own blood kids...for what is the reason for working and thinking hard? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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