Looking for financial advice about retirement

(Shutterstock)
(Shutterstock)

A Fin24 user is about to retire and is not sure where and how to find some sound financial advice. He writes:

My predicament is that I am at the point of retirement and unfortunately am not rich.

My total value is about R5.5m and consists of a retirement annuity (RA) of R2.1m, investments in equities valued at R1.5m and a house worth R2m.

I need to know if it is better to draw the maximum on the RA fund and let the equities grow.
When the RA fund is exhausted the equity fund could perhaps have grown enough to support me.

Is it worthwhile to engage with a financial planner? What will the costs be and whom do I contact and where?

Please point me in a direction – your input will be appreciated.

Raul Jorge CFP®, of PSG Tyger Waterfront, responds:

The choice between using your retirement annuity (which I am assuming is to be converted to a living annuity when used to draw an income) or your share portfolio for your retirement income is, amongst other things, largely dependent on your income tax situation.

How your retirement annuity is invested (from an asset class perspective) and the composition of your equity portfolio will also play an important role.

There are a number of other factors to consider, such as your income requirements and life expectancy. For this reason, and based on the fact that the information you have provided is rather limited, it would be in your best interest to consult a qualified financial planner who can thoroughly review your personal situation and make the most suitable recommendation for you.
 
To ensure that the advice you receive is appropriate, I recommend consulting a Certified Financial Planner®. CFP® professionals have met the competency, professionalism and ethical requirements set by the Financial Planning Institute of Southern Africa (FPI).

This means that they have the relevant training and experience required to provide clients with appropriate advice.
 
CFP® professionals are typically remunerated either by earning commission (paid directly from product providers) or by earning professional fees (paid directly by clients). The fees charged will differ depending on which Certified Financial Planner® you consult and must be discussed and agreed upon beforehand.
 
To find a CFP® professional you can visit the FPI’s website at www.fpi.co.za. Here you will find a search engine that will allow you to filter financial planners according to their geographic location and the services they offer.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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