Retirement Planning
Retirement Planning
A - Compound interest is the 8th wonder of the world, no one is ever too young to start saving for retirement, like everything on earth, the younger the better!
B - If you wait until you can afford to start saving, you will never be able to. Paying more into your bond is always a good idea, but the reality is most people take more out of their bond than put more into it, and the dream of another property in most instances remains a dream.
C - With the divorce rates as high as they are and the numbers of broken relationships increasing all the time, it seems rather a futile argument to rely on someone else’s generosity.
D - Even the government understands the importance of retirement planning and as such has made retirement annuities the most attractive vehicle for planning for one’s retirement.
FACT: 6% will retire financially secure, the remaining 94% will depend on their children, state pension or their inadequate pension or provident funds, etc!
How does one go about supplementing the retirement planning? One needs to use vehicles consisting of a number of assets classes.
- Cash
- Shares
- Bonds
- Property
How does one go about investing in all of the above?
By making use of financial advisors, who will assist in putting plans together that meet your retirement planning needs.
One of the more popular routes to use is the retirement annuity route and the advantages are:
- Creditors cannot touch it.
- You contribution is tax deductible – up to 15% of your non retirement funding income
- The fund is taxed at 0%, this has come down from 18% in the last two years, whereas your investments are taxed at 30%
- It is a flexible investment, you may increase and make additional payments to it when you like.
- Once a retirement annuity is 3 years old it becomes an investment in good faith and can be paid out overseas, should you not be in SA.
This is not the only route, one should supplement their retirement planning by also making use of unit trusts, shares and savings plans.
How will you be sure that you are one of the 6% that will retire comfortably!
Be one of the 6% that contact their financial advisor TODAY!
Shirley Brewer
