Patrick Abankwa, a financial analyst, has detailed that a young man investing in a personal investment plan by saving GHS50 monthly will accrue GHS1.4 million when that individual hits the retirement age of 60.
According to the financial analyst, personal investment plans and mutual funds are retirement solutions for people who want to have GHS 1 million after their retirement.
He noted that personal investment plans come with an interest rate of 18 per cent.
The financial analyst detailed that if one just saves 500 cedis a month with invests it in an investment plan, that person will accumulate just 120,000 cedis, but investing in a personal investment plan, that individual will accrue an additional 946,000 cedis in interest.
Speaking on Onua FM, Patrick Abankwa, a financial analyst, detailed, “Someone will say he or she wants to retire with 1 million cedis, which is 10 billion old currency. 1 million if you are 40 years old now, you are going to work for the next 20 years until you go for retirement, in months, you will have to work for 240 months.
The 240 months you will have to save 1000 cedis every month for 240 months, the interest used in calculating it is around 18 per cent. So, 1000 cedis every month for the next 20 years, you will retire wth around 2.1 million cedis.
Let’s say you are not able to save 1000 cedis but 500 cedis, that will give you exactly 1 million cedis”.
He further added, “The good thing about this investment is that, if your salary increases, you can also increase your savings. The more you increase your investment, the more you gain in future.
He further detailed that his calculation is based on interest savings with an insurance company.
“The 500 cedis, if that person saves it as savings, his money will be 120,000 cedis. But with interest will be 946,000, so that is an investment; it is not just about putting the money down.
It is a personal investment plan that is your retirement plan”, he stressed.
He further calculated for an individual at age 25, “If someone at the age of 25 wants to save, that person will be working for 35 years; that person will be working for the next 420 months. That person will need to save 50 cedis a month to gain 1.4 million cedis.
According to the Financial Analyst, individuals who start an investment plan early tend to pay less than individuals who start at a later age.
If one waits to get to 40 years, the money to get to the same target becomes higher; if you begin early, you will be paying a smaller amount of money to get to the same target”.
Meanwhile, some Ghanaians have expressed their opinion about the video saying, “Good idea but it is not easy bro schools fees, unexpected sickness, rent etc men wish to do but sunsum p3 nanso..”
“hmmm minimum wage is killing us ooo”, another netizen stated.
Additionally, a netizen quizzed, “How many Ghanaian youths start working at the age of 25 years ?”.
Watch the video below:
@patricktvgh Ghs 50 monthly from age 25 years will give around Ghs 1.4million at age 60. If you start at age 40, you will need Ghs 500 monthly for same target!! #investmentplan #wealth #financialadvice #fyp #foryou ♬ original sound – Ghana’s No.1 Financial planner