There are several income solutions available to choose from when you reach retirement, each meeting different requirements. Amongst these solutions, the two traditional ones that are currently used to provide retirees with an income from their retirement savings are a guaranteed life annuity and a living annuity.
Launched in 2020, the inaugural Financial Planning Summit was an outstanding success, with nearly 1000 delegates enjoying the market-leading content. The virtual conference will be brought to delegates in 2021 by The Collaborative Exchange and in conjunction with Investec and Adviceworx as the lead associate sponsors
The benefits of diversifying offshore - across different sectors and geographies - are well-known, especially in a country that represents less than 1% of global GDP. Now investors can access global market indices via low-cost exchange traded funds (ETFs) directly on the Glacier International Platform.
If you own assets outside of South Africa, your estate may have foreign tax liability upon your death. These foreign estate taxes, also known as inheritance tax, can be avoided by holding certain investible assets (e.g. ETFs and shares) in an offshore life wrapper or policy.
The negative economic impacts of COVID19 are being felt by many employers and reducing operational costs has become a critical priority – the primary of these being reducing their salary bill. Hence, a strategy is to offer employees who are a few years away from retirement, the opportunity to retire early.
The term “sustainable investing”, describes investments that aim to produce positive returns as well as a positive long-term impact on society, the environment and the overall performance of a business. Some asset managers began including ESG (environmental, social, governance) factors in their company analysis a few years back, to determine if these are relevant to the company’s performance.
Liquidity refers to how easily an investor can sell an asset, for example a house, shares or unit trusts (collective investments) for cash, which can then be used to meet either ongoing expenses or an emergency once-off expense. If the asset takes a significant amount of time to sell or the investor experiences a loss when selling, then this is referred to as liquidity risk.
What makes retirement planning such a difficult exercise is that you have to plan for many unknowns. How long are you going to live, what is the rate of inflation going to be, how will your income needs change over time and what will your investment returns be in retirement?
It’s the consultation that most people dread – a bit like going to the dentist or getting a physical. You have anxiety about not saving enough for retirement; or adjusting your budget to match your income; or perhaps you need to plan for your kids’ education. These are daunting thoughts, but the anxiety is unnecessary,
Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za