While you are still in the work to live, to eat, to sleep, to get up again for work stage of your life, you must not lose sight of the fact that you’ll want to (or have to) retire one day. When that day comes you’re going to need income that you don’t have to work for. Passive income!

One of the best forms of passive income has got to be rental income from fixed property. You might need your zimmer frame to collect the rent but when that packs up you can always pay an estate agent to do it for you.

The rent goes up every year, so inflation won’t eat away at your lifestyle.

But if you want to retire on, say, R40 000 per month after tax (in today’s terms) you’re going to need – wait for it – about R10m invested in property. And as some investments inevitably turn out to be not as good as others (look what happened to Hillbrow, Yeoville, downtown Johannesburg), you need to aim higher in order to be confident that you will be able to maintain your required income level through thick and thin. Higher, in my mind means one million pounds sterling!

Yes, you need to be a sterling millionaire (over and above your non-income producing assets) in order to enjoy a decent retirement.

So start now!

Should you wish to make an appointment, please feel free to visit Derek’s diaryand book a time that suits you.