Right investment option will meet needs

2019-03-27 06:01
Dinash Pillay

Dinash Pillay

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If you are a public servant considering early retirement, you will either receive a lump sum if you have less than ten years’ service, or a lump sum as well as a monthly pension if you have more than ten years’ service. the case of those with more than 10 years’ service, you’ll receive.

In this article, we will discuss how you can meet your monthly income needs – whether that be with a guaranteed income, or an income to top up the monthly pension that you will receive.

To meet your individual needs, it is important to invest your lump sum in the best possible way.

You need a guaranteed income:A life annuity provides a guaranteed income for the rest of your life. You can choose a single life annuity, or a joint life annuity if you wish to have an income paid to your spouse after your death.

You could also opt for an inflation-linked life annuity, where the income will be adjusted annually, in line with inflation, for the rest of your life.

You need to top up your monthly pension: The above-mentioned life annuity options are also avail­able in this instance.

Alternatively, if you have the appetite to invest in the market, you can opt for an investment plan.

This will give you market, or equity, exposure tailored to your tolerance for risky or growth assets.

You could invest your lump sum in collective investments (unit trusts), wrap funds or even a share portfolio.

There is no fixed investment term and you can add amounts to the investment plan at any time. You can also draw a regular income from the investment plan.

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.

This is another reason why obtaining advice is so important.

Find out more:Jenwil BlueStar Financial Advisory Services and Express will host a conference in Bloemfontein on 10 April to help demystify this very topic. I will be the guest speaker on the day, and will highlight the benefits of the various solutions discussed in this article.

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 office@jenwil.co.za. – Dinash Pillay, National Business Development Manager, Glacier by Sanlam


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