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Business ideas for a retrenched man, capital 700,000 Kshs.
Rank: Member Joined: 4/21/2011 Posts: 119
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Hey Wazuans,
My uncle will be out of his job by end of this August due to retrenchment. He needs ideas on businesses he can start with his retirement package which is a little more than a million but after he enjoys himself, he will probably be left with something like 700,000 Kshs.
He is about 51 years old, likes having fun and is a well known dude.
Any advice based on this information.
Regards.
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Rank: Veteran Joined: 4/4/2007 Posts: 1,162
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Rank: Member Joined: 4/21/2011 Posts: 119
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He is in the Human resource profession, however a very junior position, I think records clerk or something. He also does something on the side which I wont mention but it has to do with football which as you all know doesn't have good returns in Kenya.
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Rank: Member Joined: 12/2/2009 Posts: 286 Location: Nairobi
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What were your uncles retirement plans? Until recently retirement age was 55 years. He is 51 years today, 4 years shy. What were his plans all along assuming he was to retire at 55 years? I think he can borrow from there, since 4 years cant make such material difference. The laudable is more often than not rendered laughable by overclaim
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Rank: Member Joined: 1/22/2011 Posts: 322 Location: Chicago, IL, USA
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Barrywhite wrote:
What were your uncles retirement plans? Until recently retirement age was 55 years. He is 51 years today, 4 years shy. What were his plans all along assuming he was to retire at 55 years? I think he can borrow from there, since 4 years cant make such material difference.
I don't know how retirement plans, pensions, and retirement-specific investment instruments work in Kenya, but in the US, if you don't wait until the DAY you are of retirement age (I think it's up to 67... SIXTY SEVEN years of 40, 60, 80 hour weeks and mountainous piles of bills and debt!) you are severely penalized by taxes, early-withdrawl penalties, etc etc. Cashing in even one day before retirement age, on many retirement plans, can cut your money in HALF. I'd say that he consult his local licensed financial advisor before making any cash-out moves. On the plantation, slave must work 'til dead. Best, Hill
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Rank: Member Joined: 4/2/2011 Posts: 629 Location: Nai
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Mapozi, You should advice him not to have any fun on his retirement package. There is no magic business idea. It all depends on his passion. There is food shortage in Kenya so he can try ......no....actually go into poultry farming for eggs and meat, farming ....greenhouse....tomatoes....etc. . .
Kenya is the land of opportunity...ask him to pursue the Kenyan dream
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Rank: Member Joined: 1/22/2011 Posts: 322 Location: Chicago, IL, USA
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accelriskconsult wrote:Mapozi, You should advice him not to have any fun on his retirement package. There is no magic business idea. It all depends on his passion. There is food shortage in Kenya so he can try ......no....actually go into poultry farming for eggs and meat, farming ....greenhouse....tomatoes....etc. . .
Kenya is the land of opportunity...ask him to pursue the Kenyan dream So a Kenchic setup makes money? I'm surprised that more people don't talk about it here. I know my in-laws do the Kenchic thing, but they don't seem exactly excited about it. Best, Hill
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Rank: Member Joined: 12/2/2009 Posts: 286 Location: Nairobi
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@ JasonHill. If he is retrenched at 51, in Kenya, he gets his full retirement benefits - both his contribution, employers contribution and the returns. However, by retirement plans l meant what he intended to do with himself after retirement. He only has to do the same thing, but start it 4 years earlier. The laudable is more often than not rendered laughable by overclaim
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Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
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According to my rough and conservative calculations 700k can get him a pension of about 6k per month from any insurance co. If he decides not to have fun with part of his benefits he can get 10k pm from about 1.17m... I think YOU should advise him to have fun with the life pension rather than the principal... or no fun at all! And then look for opportunities to supplement his income... What was his working income & lifestyle? Can he survive on 10k? Wife? Kids? Other dependants? Does he own a home? Farm land? Any assets? Shares, livestock, sacco, etc. "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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Tell your uncle to go buy pension, there are no ideas in business for him, business is a career if he is 51 and has never done business just forget it, he will lose the entire capital in a year or two. There are many things that you need to learn along the way in business, like marketing, managing cash flow and the special touch with clients and some of these things you learn through experience. I have seen retirees buy dairy cows and chicken only for entire stock to die in year, set up a shop and end up with dead stock and no customers.
If you are in employment for that long and you have never been doing business along the side what makes you think it will work now. If you want to be an entrepreneur start when you are young with minimal capital and build on that. This idea where you work for wages to accumulate a lump-sum to invest in business is just a waste of capital, business is more of mental attitude, too bad he has already conditioned himself to be receiving regular wages-the curse of employment
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Business ideas for a retrenched man, capital 700,000 Kshs.
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