how much you need to stop working for money, forever


How much do you need to make a living from your investments? Certified Financial Planner Paul Roelofse shares a few formulas.

Click here for all of our personal finance articles in one place.

If you are very confident about your financial situation you are probably not going to wear an eight pound chain around your neck … If you are confident about your sexuality you do not need to have eight women around you. twerk!

Barack Obama, Former President – United States of America

How much do you need for your retirement?

How much do you need to make a living from your investments?

This can be much earlier than the usual retirement age of 65, says certified financial planner Paul Roelofse.

For many people, however, it will be much later.

Guidelines on how much you need to be financially free:

© deagreez /

The 15% “rule”

This is a good starting point for investing 15% of your income each month.

If you start at 20 and earn R15,000, your 15% savings is R2250 per month.

Keep going until 60 (40) and you should be raising around 12.5 million Rand.

If you start at 30, investing the same amount will get you to 4.6 million rand while starting at 40 will leave you with 1.6 million rand at 60.

The most important factor is time.


Divide your annual retirement income required by 0.05.

If you need R15,000, multiply it by 12, then divide by 0.05, which equals R3.6 million.

Multiple of your monthly income need

Another shortened way to get an amount is to take your monthly salary multiplied by 240.

If you earn R15,000 per month, multiply by 240, which equals R3.6 million.


Financial planners calculate the amount required by “capitalizing” the need for income.

Taking inflation, yields and the weather; a monthly income requirement of R15000 for a period of 15 years amounts to R3 470 695.

Kieno Kammies Interviewed a Certified Financial Planner Paul Roelofse.

Click here for all articles by Certified Financial Planner Warren Ingram in one place.

i think 65 [as retirement age] is outdated… We’re living longer… 75 is the new 65…

Paul Roelofse, Certified Financial Planner

… 15% may not be enough, depending on how much time you’ve saved… You can now go up to 27.5% [allowed tax deduction] …

Paul Roelofse, Certified Financial Planner

The definition of financial freedom is where your investments pay off enough to maintain your lifestyle for the rest of your life – a tall order… The lower your lifestyle, the less provisions you need…

Paul Roelofse, Certified Financial Planner

It is not out of reach … a constant saving over time …

Paul Roelofse, Certified Financial Planner

For more details, listen to the interview in the audio below.

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