Financial Advisor
This week I would like to focus on the term capital income, which is usually used to describe the taxable portion of a capital gain realised. However, the term capital income is also applicable in retirement planning. Let me explain
Retirement Funds are well understood for the income tax benefit in that contributions to retirement funds are tax deductible based on 27.5% of a person’s taxable income, capped on R 350 000 per annum. Often overlooked is the estate planning benefit
I fear the average South African is facing a ticking time bomb iro underfunded retirement as we continue to kick the proverbial can down the road until we are forced to deal with the reality of the situation and then
Establishing if you have enough for retirement is a fairly simple exercise of determining how much income you need to fund your lifestyle and then calculating how much capital is required to provide for this income using an assumed rate
Living Annuities are currently under the spotlight and likely to be blamed for poor retirement outcomes. However, this is like blaming traffic fatalities on the invention of the motor vehicle. Taking a step back living annuities have all but replaced
The three risks underlying retirement planning is longevity, inflation and investment risk. As a retiree you have no control over your longevity and the inflation risk. If only we knew when our time was up planning would be easy. Just
At gym the other day a local minister mentioned that he regularly read my article. He questioned me on the difficulty of selecting a new topic each week. His passing words were, “at least you know how we ministers feel
For this week’s article I am going to ask you to pretend you are living in a make-believe world, which shouldn’t be too hard, just follow our supreme leaders example by living in denial until you believe your own lies;
It is interesting to see how many people are beginning to look at their home as a retirement asset. There are two reasons for this firstly the average person nearing retirement is under-funded, in some cases their homes are their
If you do not want to erode capital in retirement your investment return must provide for both income and costs after inflation. If you’re drawing 5% income and the underlying costs are 2.5% then your investment needs to earn 7.5%