I am retiring in five months at the age of 63. I have R5 million invested in a retirement annuity (RA) and R5 million invested in discretionary savings, all via eight exchange-traded funds (ETFs).
Almost all ETF investments are offshore in aggressive growth products. I can sustain myself on a 4% drawdown rate.
Can you please advise on the following:
► Should I opt for a pension by purchasing a guaranteed and a living annuity? If so, what should the split be?
► What is the most effective way to draw monthly from my RA and the eight ETFs?
► How long would my pension last, as I am commencing with a 4% drawdown rate?
Dear reader,
Please note that my response should not be considered advice or a retirement proposal, as there are many other factors to consider.
For instance:
► Is the drawdown income solely for you?
► Is a spouse/partner considered for a joint life annuity option?
► How important is preserving capital after death from any portion of the portfolio for beneficiaries?
► Are there any future capital needs during retirement, such as buying a new car?
► Do you already have an emergency fund?
And any other relevant considerations.
In broader terms, for the sake of general retirement knowledge, let's explore a basic model of a possible retirement plan.
Starting with your last question:
Bu hikaye The Citizen dergisinin October 18, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye The Citizen dergisinin October 18, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Racing into the light
CONCERN: DECLINE IN HORSE POPULATION IN POST-COVID ERA
Existent to score at Lingfield
Existent does not win as often as one with his ability should, but he simply must be in the mix in the Weekly £5 Free Bet With BetUK Handicap at Lingfield today.
SA20 Creates a Talent Boom
The SA20 league has done so much for local cricket, attracting people to stadiums for the first time in years and promoting the game to new fans.
BUCCANEERS SAIL AHEAD
Home Win: Down Belouizdad to Reach Champions League Quarters
Stormers provide a silver lining
South African fans expected much more from their teams going into the third round of the Champions Cup after just one win to speak of in their first six games (Sharks beat Exeter Chiefs).
Gunners Pay Penalty in Cup
Manchester United survived for an hour a man down to knock Arsenal out the FA Cup 5-3 on penalties after a 1-1 draw at the Emirates yesterday.
Downs fightback pleases Cardoso
Mamelodi Sundowns coach Miguel Cardoso has praised his team's resilience after they came back from a goal down to snatch a 2-1 win against AS Maniema Union in a Caf Champions League match played at Stade de Martyrs on Saturday.
Chiefs page back to the old script
PSL: MIS-FIRING AMAKHOSI ARE TRIPPED UP BY ARROWS
Lions are at last chance saloon
The Lions have it all to do this coming weekend if they are to stay in the race to make the Challenge Cup knockout rounds when they host the Dragons in a round four clash in Joburg.
Shami recalled to India squad
Fast bowler Mohammed Shami (above) returned to India's squad for the upcoming T20 international series against England after more than a year's break due to injury.
