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.
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Bu hikaye The Citizen dergisinin October 18, 2024 sayısından alınmıştır.
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