We’ve had some policies mature recently. R250k after a good 20yrs of stashing away.
Was it a good investment? I don’t know!?
At this stage, I actually don’t care. No matter what the returns, it’s R250k we wouldn’t have had, had we not stashed away the stash each month.
I find that’s the challenge of a lot of people I talk with. There seems to be the belief that the small amount saved each month is not worth it, that we’re all fighting a loosing battle. The standard belief is that, in the future, R250k is worth nothing, so why bother? Lets spend it all on braais, fishing and rum&coke today.
So I’ve signed up for some RA’s for both the kids some years back. It’s miniscule, R150 p.m. But, if they keep them going, that’s hopefully worth R3M each after 50 yrs of virtually no monthly stress [because let’s be serious, R150 pm in 2014 is doable even by my son who has no income other than pocket money]. So, sure, R3M in 50yrs may be worth not much, but at least it’s still R3M more than you would have had.
So, if you want to delude yourself that R150 p.m. is not worth the effort then be my guest !
Me? I prefer to cash my R250k into the bond today, no matter whether it was a sound investment [analytic’s wise]. At least the total debt is now under 1 Bar again and moving in the right direction. If I’d taken the mental stance that the money is worth nothing in the future I wouldn’t be in this position.
So, I suggest – keep saving away, no matter how small. Use the magic that is compound interest. Your future self will thank you!