In this communication I emphasize the importance of Retirement planning. I also introduce the new Glacier Capital Enhancer with an 85% upside guarantee. Act fast to make use of this amazing opportunity! I also attach a brochure that tells you more of the Glacier Capital Enhancer.
Here’s a question that will keep you awake: Are you on track to have 10 times your last yearly salary saved by the time you retire? For many South Africans, the answer is “absolutely not!”
But there is hope! Here are some simple truths that will help you get to your goal:
Start today!
“Stop doing what is easy or popular. Start doing what is right.”
Roy T. Bennet.
The best time to start contributing to your retirement is with your first pay cheque. But what if you did not? Well, then the time is `! Remember the biggest advantage of long-term investment is the compound effect of money. This coupled with the ability of your investment to outlive ups and downs of the markets makes saving and investing a necessary part of your retirement planning.
How much should you save?
“As much as you can” is the standard advice. Many financial planners recommend that you save 10% to 15% of your income for retirement, starting in your 20s.
But that’s just a general guideline. This is your retirement we’re talking about, so it pays to get a little more specific by doing your homework up front. It’s a good idea to establish a savings target – one that tells you roughly how much you should set aside over time to meet your retirement goals.«AddressBlock»
Increase your contribution
As time goes by your income increases, and your expenditure changes. Remember to revisit your contribution regularly to keep as a percentage of your salary.
You have a tax rebate on just about all contributions to a retirement annuity (up to 27.5% of your salary). This benefit is worked out yearly and would also apply to a lump sum on a yearly basis. Would it not be nicer to contribute to your retirement than to the tax man?
Keep up the commitment
Now that the ground work is done, and the intention is set, you must stick to your guns! Keep up the investment monthly. Organize your financial life so that you can afford it – and then almost forget about it. Remember this is your gift to yourself. Honor it!
Look for enhancers
Turn R100 000 into R1,000,000 in less than 20 years
Every now and then an opportunity arises that would give your retirement planning a boost.
As we speak Galcier by Sanlam launched its 10th edition of their Capital enhancer. For the first time the upside guarantee is 85%.
How does this work?
You invest a minimum of R100 000 once off fixed for 5 years.
We track the Stoxx 500 with your money. Should the index go up in 5 years, Glacier guarantees an 85% return on investment. This amounts to 12.6% growth per annum (before tax). Should the Stoxx exceed 85% in five years, you get the full benefit. And the best of all: should the Stoxx go down in five years we would give you back your total investment – you will suffer no capital loss!
In short:
You invest R100 000 and more:
- If the index goes up your R100 000 becomes R185000
- If the index goes down your R100 000 stays R100 000
- If the index exceeds 85% growth your R100 000 becomes the full upside.
Shouldn’t such an investment be part of your portfolio. There is almost no risk.
Let us meet for coffee!
I am always available to work through your current financial position with you. I will advise you what is in your best interest and help you monitor your performance.
Feel free to message me to make sure you get the best guidance. Coffee is on me!
