Bright

Long post alert! Remember the retiree who hoped to build their dream house at 55? Their pension is only K960,000. That amount can’t build a decent house and provide money to live on. It’s also not enough to start a brand‑new business at 55 with no experience. But if they split the K960,000 into six portions of K160,000 and invest each portion into 15‑year government bonds (the safest option in my opinion), staggered over six months, something interesting happens. GRZ bonds pay interest twice a year, so staggering them over six months gives the retiree a monthly coupon for the full 12 months. At the current interest rate of 17.59%, that’s about K28,144 per 6 months before tax, or K22,233 after tax. In short: the retiree can earn K11,116 every month for the next 15 years. This amount is 43% higher than Zambia’s average monthly earnings and only 20% lower than the average salary in the mining sector, the country’s highest‑paying industry. Now, isn’t that a better deal for a retiree—stable, effortless and guaranteed income every month? After 15 years, at 70, they get back the original K960,000 and can reinvest or use it however they wish. Please don’t obsess about inflation. It matters, yes, but investors may tend to exaggerate it. The Zambian central bank is literally mandated to keep inflation within 6–8%. That’s their job. Lastly, please stop overestimating business returns in such a very unstable economy like ours. Starting a business at 55 with your life savings is extremely risky. Disclaimer: This is only my opinion, not investment advice. I’m not a licensed financial advisor. Use this information at your own risk. #nodignityinpoverty