THE DAY - Old Mutual

17.5% of the value of your fund; the risk is that you may outlive your money so withdrawals greater than inflation are strongly discouraged. GOOD. TO. KNOW.
318KB Sizes 3 Downloads 139 Views
TODAY’S

THE DAY

#GETGREATADVICE PERSONAL FINANCE NEWSLETTER

ISSUE 3

Hello The festive season is nearly here bringing with it sunshine and holidays - which, for some of us, may even include a family trip. In this newsletter we talk about living a little larger with family and friends this holiday without incurring a heavy yearend financial hangover in January. Part of this includes maintaining a long-term commitment to your investments and ensuring that you have a financial plan as well as a diversified portfolio that can withstand changes in the market. Here are our key investment principles we encourage you to live by irrespective of the impact that political uncertainties or the recent downgrade of our local currency by the S&P Global Ratings has on our market.

GETTING READY TO RETIRE

FIVE YEARS FROM NOW?

Having a financial to-do list will help get you there safe and sound – and set to enjoy retirement the way you’ve always wanted to.

START HERE 5 YEARS TO GO

· Consult your financial adviser about your options at retirement, including your estate planning.· Maximize your contributions to your fund. Have additional voluntary savings available e.g. unit trusts to ensure additional liquidity. This will support some goals if most funds are tied up in your retirement savings.

3 MONTHS TO GO

Speak to your financial adviser about your options at retirement. • What are the appropriate investment options for investing your retirement income? • How do you draw a monthly income from your retirement income without running out of funds down the line? • Consider your tax position at retirement, including the tax implications of your income, after retirement.

6 MONTHS TO GO Revisit your medical aid benefits. It’s a fact of life that your medical expenses will increase considerably from now on.

6 WEEKS TO GO

Get your admin in order. Check that you have the necessary exit and tax documents.

TO GET STARTED If you are not in contact with a financial adviser: CALL

0860 60 60 60

EMAIL [email protected]

THE BIG DAY

Say goodbye to your colleagues and get ready to do the things you’ve always wanted to but never had time for.

VISIT OldMutual.co.za/financial-advice-andplanning/findanadviser

GOOD TO KNOW Source: Old Mutual Corporate Communications

There are two types of annuities: • Guaranteed annuity - pays a guaranteed income for a pre-determined period; in the event of your death, the income may be passed on to your beneficiaries. • Living annuity - enables you to draw an income of between 2.5% and 17.5% of the value of your fund; the risk is that you may outlive your money so withdrawals greater than inflation are strongly discouraged.

FIND AN ADVISER

Click here to select whether you’d prefer a phone call or face-to-face interaction

It is important to review your financial plan every year. If you don’t have a plan, now is the time to develop one and get financial advice from an accredited adviser.

Enjoy the festive season without it costing the earth The shift in weather patterns locally and internationally is a reminder that climate change is real. Domestically, the drought in the Western Cape has led to severe water restrictions for all users and a shortage in the availability of locally produced food products such as butter, beef and chicken. Continued demand for these products will lead to higher imports at higher prices.

To keep your festive season budget in-hand, and to be environmentally conscious, try these five handy tips from the WWF: 1. Treat water and electricity like the scarce commodities they are: a. make sure festive lights have Compact Fluorescent Light (CFL) bulbs. b. don’t let cooling off with water slides, swimming pools and sprinklers waste potable water. 2. Shop