Almost everyone dreams of retirement as a time of peace and relaxation but, in reality, the retirement process is probably the riskiest financial event in your life.
There are two main reasons for this.
Firstly, the decisions you make today will decide the quality of the rest of your life.
Secondly, it is virtually impossible to recover if you make a mistake. By definition this is as r... ››› more
On 18 July 2018, I told readers that buying an annuity at retirement was a more secure way to ensure you don't run out of money. Rather than taking a lump sum and managing it yourself.
Following this article, I received the following letter from G:
I read your email regarding retiring with R5.5 million and receiving a monthly income of R46,777 guaranteed for life.
I just d... ››› more
A week ago I was nearly convinced low-cost RA's are the way to go. I read a well written article on the web, promoting the virtues of low-cost RA's.
The article uses the following example:
Someone has saved R3 000 every month for 40 years into a retirement annuity (RA), and earns a return of 6.5% above inflation.
If you pay an investment fee of 3% you'd end up with R3 million at the end ... ››› more
I probably learned more from my mother's retirement experience than anyone else's. When she retired, she wanted security, lived austerely, but had no idea whatsoever of enhancing value.
And therein lay the disaster. My mother sold her home, moved into a seemingly more secure rented complex, and placed all financial resources into a low interest bearing building society account in an extremely h... ››› more
For decades, retirement investors handed over control of their finances to someone else to squeeze as much as they can out of their retirement annuities (RA). If you're doing that, then you know it means accepting mediocre returns and paying high management fees.
But there's a little-known ‘new generation' RA that lets you customise your investments. In fact, you now have full control over ... ››› more
If you know just a few simple tricks you can take control of your own retirement back from your financial advisor - and save a small fortune in fees at the same time. Today, Aiden Sookdin speaks to the experts and explains exactly how to set up your own fool-proof retirement savings plan - DIY style. It's a lot easier than you may think. Just follow this simple four-step plan and you'll be well on... ››› more
Planning for retirement isn't an easy thing to do. There are so many choices about how you can save and invest for your future.
One option you have is to contribute to a retirement annuity.
So what exactly is a retirement annuity? And how do they work?
Read on to find out more…
What is a retirement annuity?
A retirement annuity is a way to save for your retirement.
You can... ››› more
A retirement annuity is a popular way to save for your retirement.
Since their launch in 1960, many people use them as a way to save for their later years as retirement annuities come with tax benefits.
So how does a retirement annuity work? Who are retirement annuities for? And what are the benefits of using a retirement annuity for saving for retirement?
Read on to find out...
How... ››› more
I recently sat down with a family friend, W, that's nearing retirement. He has 12 years to go.
W will pay off his house by the end of this year.
Both his and his wife's cars are paid off.
But W doesn't have ANY provision made for retirement.
As we sat and discussed his options I realised W had to ask himself ONE question before we could continue - and this question would turn out to a R1... ››› more
Retirement annuities (RAs) are popular saving vehicles for retirement. But do you know there is a newer generation of RA that uses unit trusts to invest in? It doesn't need a policy like the older style, works out cheaper and is much more transparent. So how can you weigh up which RA is best for you? Ask yourself the following questions…
Question #1: Are there any penalties if you change your... ››› more
Retirement annuities (RAs) are long term savings vehicles that you can use if you're not a member of retirement fund schemes or wish to top up your retirement savings. Their big attraction of RAs is the tax deductibility of the investor's contributions. But not all RAs are made equal. That's why, before picking one, you need to consider these six points…
Six points to consider when selecting ... ››› more
Whether you're looking for a new way to save for your retirement or you want to add to your current pension scheme, retirement annuities (RAs) could be worth a look. Introduced into SA over 50 years ago, RAs encourage you to save for your retirement in a tax efficient way. Let's take a closer look at how retirement annuities work…
What are retirement annuities?
On a basic level, RAs are sav... ››› more
As our family's ‘Financial Expert' I always have family members coming to me for help. And this past week I received a mail from a family member asking me to have a look at a retirement policy of theirs and whether they should continue paying it past 55.
When I saw its contents I was ready to explode.
You see, this retirement plan my family member was pay towards wasn't benefitting him at ... ››› more
When it comes to saving for your retirement, the most important aspect is having enough in your pension pot for your golden years. But how much should you be squirrelling away every month? Read on to find out how you can work this out…
To ensure that you’re saving enough for your retirement, you’ll need to get a bit technical, Phil Oakley in MoneyWeek explains…
Annuity factors (AF) he... ››› more
One of the most popular retirement products on offer is a retirement annuity (RA).
That's because of the great tax breaks that come with an RA.
Now there's a new investment tool called a ‘new generation' RA that lets you customise your investments.
And you still get the tax perks of a traditional RA…
The fully customised investment that’ll fit in with your life and your income situati... ››› more
Depending at what stage you are in your life will determine how you should be preparing for retirement. If you're aged between thirty and fifty, it's time to take that retirement nest egg by the horns. Read on to find out what you can do to save for your retirement…
When you’re aged between 30 and 40, no doubt you’re facing the demands of children and paying off a mortgage.
Put 10% extr... ››› more
How do you avoid running out of money when you retire? This is a question you've probably thought about. Many of us use our pension pots to buy an annuity (an income for life) from an insurer. Read out to find out why you should buy an annuity…
Some people are reluctant to swap their pot for an annuity. For instance, if you die prematurely, your relatives won’t get a penny of it.
But if y... ››› more
You need to make sure you prepare yourself financially for retirement. And one way of doing that is through a Retirement Annuity (RA). Read on to find out how you can make the most of a RA for your golden years…
Retirement Annuities (RAs) can give you significant tax advantages, explains The South African Investor’s research team...
Your contributions are deductible (within limits) to the... ››› more
There are so many pension and retirement products out there, it's a minefield. It's difficult to know which option suits you best. If, like many South Africans, your employer doesn't provide a pension package or you're self-employed, a Retirement Annuity might be the perfect retirement tool for you…
Retirement Annuities (RAs) were first introduced in South Africa in 1960 as a way to encourage ... ››› more
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