|
Back to Home Page . Get a quote online Investment Plan If you have a
specific savings goal such as a well deserved holiday, your
child’s education or your retirement, an Investment Plan offers a
solution to your need. With an Investment Plan you will not pay extra tax on your investment when it realizes and during the term you can invest in a wide range of funds. You will also have full investment flexibility and will be able to switch back and forth into funds that make investment sense during your investment term. How is your money invested? You choose. You can decide between different risk-profiled funds, plus local or global money market funds, bond funds or equity funds. You can check the performance of these funds every day in your newspaper and decide if and when to switch. Some questions Can
you borrow on your investments? Yes, you can borrow against your contract, but this is subject to certain legal restrictions. Also remember that borrowing impacts on the value of your investment. Can
your investment return be guaranteed? Yes, if you want to take the conservative route, the company will guarantee a fixed amount at the end of five years, which may be extended for an extra five years. Can
you put spare cash into your investment? Yes you can, at any time, but this is also subject to certain government restrictions. The essence of investments is flexibility. What
are your options at maturity? The benefits will be paid as a lump sum at the end of the contract term. The value of this lump sum will depend on the performance of the funds that the investor has chosen. At realization, the investments owner also has a choice to discontinue contribution payments and leave all or part of the proceeds to continue to participate in the selected investment funds until cash is required, and /or to take all or part of the realization proceeds in cash. How
much do you have to contribute? On a recurring investment the client may invest as little as R200 per month and a minimum of R15 000 is required for a single-premium investment.
Retirement
Annuities At
the age of 65, only 6% of South Africans are able to retire
financially independent. Of the remaining 94%, 47% rely on their
families, 16%, are dependent on the state and 31% are forced to
continue working. It is therefore essential for investors to take responsibility for providing for financial independence on retirement. A Retirement Annuity offers an exciting and tax-free opportunity to achieve this. Who
should invest in the Retirement Annuity? Anyone wishing to save towards retirement should consider a Retirement Annuity. The structure of the Retirement Annuity provides a tax-effective retirement planning instrument and is designed to encourage long-term saving for both employed and self-employed persons. What
are the advantages of the Retirement Annuity? The Retirement Annuity focuses on maximum flexibility for the client:
What
are the tax advantages of Retirement Annuity? Contributions to the Retirement Annuity are tax deductible within certain limits. The current limits applicable to the tax deductibility of contributions to Retirement Annuities are the greatest of:
When can the investment be realized? Investors will be entitled to access their funds in the Retirement Annuity as a maturity from the age of 55. At the realization date, a maximum of one third of the investment value can be taken as a lump sum. The remainder must be used to buy the investor an income for life. There will be tax consequences in respect of the lump sum on maturity, but the investor will benefit from favourable tax concessions. What investments funds are available? Investors will be able to choose from a full range of funds. Investments may be made into as many funds at a time as required by the investors, subject to minimum contribution rules. Switching between investment funds is also allowed. Basic product rules
|