It seems inevitable that the generation that goes online to diagnose health issues will also want to manage its own retirement affairs, but with so many future unknowns — lifespan, spending needs, inflation and investment returns — there are not always easy, perfect solutions online. Instead, these people will have to apply principles and best practice to safely navigate their personal situation and the market conditions that lie ahead.
Though annuity prices are lower than they have been for years and most retirees rate a secure income as their top priority, the majority do not choose this option. They would rather keep control over their savings, usually within a living annuity. This lets them decide how to invest their money, and how much to draw every year. Plus, any residual capital goes to their nominated beneficiaries.
A well-diversified high-equity portfolio has historically delivered the best returns over periods of five years and more relative to a medium and low equity portfolio, which means your savings should last longer or afford a higher income than if you held mainly bonds and cash. But this too imposes an emotional cost, having to endure market volatility. And sometimes a permanent financial cost if you run into a bear market early on, when your savings are at their peak.
Index funds can be used to keep your fees below 1% per annum. Moving your living annuity to a low-cost provider is another way to save money and support a higher withdrawal rate. But designing your own portfolio is one thing, looking after it another. You can combine different unit trusts or invest in one strategic multi-asset fund. The latter is simpler and more prudent.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessTechSA - 🏆 24. / 61 Read more »
IN PICS | At last, a stampede to the Durban JulyAfter two years of empty stands, the race was open to real, live punters again — and they came dressed to party. Thanks for restoring my happiness in my darkest days, during those period I invested $500 and to my greatest surprise I got a return of $5,500 in just seven days he's reliability can't be equated BernardMason07 People take this July thing too serious. I stayed in durbs for 25 years and never went to one of those things... Being the head of the home isn't easy, you are expected to provide for the home, I lost my job during the pandemic and relied on the little money I had,things were hard until I met BernardMason07 and started Bitcoin trading, I earned R800,000 in 3 weeks thanks BernardMason07
Source: TimesLIVE - 🏆 28. / 59 Read more »
IN PICS | At last, a stampede to the Durban JulyAfter two years of empty stands, the race was open to real, live punters again — and they came dressed to party. Thanks for restoring my happiness in my darkest days, during those period I invested $500 and to my greatest surprise I got a return of $5,500 in just seven days he's reliability can't be equated BernardMason07
Source: SundayTimesZA - 🏆 47. / 51 Read more »
Source: TheSAnews - 🏆 25. / 59 Read more »
Source: Channel24 - 🏆 48. / 51 Read more »
Source: TheSAnews - 🏆 25. / 59 Read more »