Public servants advised

2019-04-03 06:00


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In last week’s article we discussed how to invest your lump sum to generate a monthly income if you have elected to take early retirement from a government pension fund.

This week we will consider some of the other needs you may have, and how best to meet these needs.

You want to grow your capital to provide for a future financial goal:

There are investments that provide a fixed return (the original investment amount plus growth) after you have been invested for a five-year term. After the five-year term, you may withdraw the funds or remain invested until you require the money.

An investment plan comprised of collective investments, wrap funds or a share portfolio – as discussed last week – is also an option.

You want to grow your capital while still drawing an income:

Some of the fixed return options discussed above also pay you a guaranteed monthly income during the investment term. You can choose whether your income will be level or increase with a fixed percentage yearly. You may also select the investment plan, but the income will not be guaranteed as in the case of the fixed return investment.

You want to leave a legacy for your dependants:

You can appoint a nominee for ownership on a fixed return plan which means that the proceeds are available as a legacy or that the beneficiaries of your choice can continue the investment.

With the fixed return plan with income, the remainder of the payments will be paid out to your dependants if your death occurs within the five-year term.

Money invested in an investment plan will form part of your estate on your death and could be paid out to your dependants by the executor of your estate, should your will and testament provide for this.

Advice is critical

With such a wide variety of options to select from, it is important to consult with a qualified financial planner who can provide objective advice, related to your particular situation. In many cases, combining different retirement income products may produce a better outcome – and this is another reason why obtaining advice is so important.

Find out more

Jenwil BlueStar Financial Advisory Services and Express will host a conference on 10 April in Bloemfontein to help demystify this topic.

Join us for this session where the pros and cons of the different options mentioned in our articles will be discussed.

Attendance is free of charge, but booking is essential.

For more detail or to book, call Heather van Niekerk on 051-447-0463 or send an email to – Dinash Pillay, national business development manager, Glacier by Sanlam


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