The truth about retiring comfortably

*This content is brought to you by Brenthurst Wealth.If you've played the Lotto lately and woken up once again to that disappointing SMS announcing your R10 winnings from your R45 bet, then this article is for you..The promise of quick and easy riches is, for nearly every one of us, nothing more than a promise. The reality is that we often live month to month, with the cost of living easily outstripping our salary/wage or income growth..But just because fate doesn't have you destined for easy street doesn't mean you can't build yourself and your family a position of financial comfort..Here are words of wisdom from three Brenthurst Wealth advisors on their top three tips for building long-term wealth:.Charize Beukes.1) If there's one golden rule, we as financial planners all live by it is 'pay yourself first'. By this, I mean putting away savings before paying anything else. By committing to saving every month, you're prioritising your own financial future. Consistently building up your savings in this way gives you the peace of mind that your long-term financial future is secure.2) You need to set clear long- and short-term goals if you hope to succeed. Research shows you're more inclined to take action if you work towards a goal that you've set yourself. Goals create a sense of purpose, and by setting different financial goals you become more motivated to achieve those goals.3) Making money vs creating wealth. You can only create wealth by letting your money work for you, and not the other way around. The only true way to generate wealth is through investments guided by proper financial planning that's aligned with your financial goals. This is not something you should leave to chance or your instincts. Engaging a financial advisor is not only sensible but also a responsible move to make.Aidan Freswick.1) The first part of building your long-term wealth is to become financially literate. Before you even start saving for your goals, it's worthwhile learning about investment strategies and terminology so that you understand why you're doing what you're doing. There is an abundance of online sources and influencers dedicated to financial education. Let your first investment be in building an understanding of key financial concepts.2) Receiving a large inheritance can be a blessing or a curse. You can improve the chances that it's a blessing by drawing on professional advisors on how to manage your windfall. Doing so will help you structure your investments to meet your needs, including creating inter-generational wealth, suitable income streams, and long-term capital growth.3) There is no shortage of investment scams posing as legitimate investment schemes. Getting involved in schemes that promise quick riches is a surefire way to destroy value. Common scams are based on cryptocurrency, forex trading, and stokvel themes that have caught out many South African investors. There is no get-rich-quick strategy: building wealth takes time, discipline, and a long-term view.Maria Smit .1) Create an emergency reserve fund that covers your fixed expenses for 3 – 6 months. Only once that's done should you look to building a long-term investment strategy. I suggest using a bucket or envelope strategy in which you dedicate savings to specific goals or outcomes – like saving for your retirement. This approach helps to separate your retirement savings from your holiday or short-term spending needs.2) Invest in a diversified worldwide portfolio. More importantly, invest in what you know and stick to proven strategies and companies whose products you use every day. No matter what goes on in markets at the end of the day we still need to brush our teeth so invest in the companies you use every day.3) Stay invested for the long term. Research shows that acting on natural instincts to flee the market when things get volatile actually impoverishes the average investor. Turns out, the markets are too efficient for us when it comes to pricing in information, and by the time we take action, prices have already reacted. We end up buying high and selling low — the exact opposite of what we need. This topic of wealth destruction isn't given nearly the amount of attention it deserves. Because all too often desperate or fearful investors cling to the hope that a crypto asset or some hair-brained investment scheme is going to save them by delivering 10X returns in 12 months. Just like playing the Lotto, these 'investment opportunities' seldom pay off. A consistent, conservative, long-term approach almost always wins at the end of the day.Charize Beukes is an advisor at Brenthurst Wealth Pretoria charize@brenthurstwealth.co.za. Aidan Freswick, Registered Financial Practitioner™, is an advisor at Brenthurst Wealth Tygervalley aidain@brenthurstwealth.co.za. Maria Smit, CFP® professional, is an advisor at Brenthurst Wealth Pretoria maria@brenthurstwealth.co.za.Read also:Retiring during a volatile marketRetiring with too little money… what to do?Retiring soon… what you need to consider

The truth about retiring comfortably

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