investments
Endowments are taxed at a fixed rate of 30% in the hands of the life company, making them more tax-efficient than unit trust investments for higher tax brackets. They also facilitate estate planning by allowing investors to nominate beneficiaries, ensuring
As an investor, it is essential to understand the relationship between risk and reward. The higher the relative risk of an investment, the larger the possible returns may be. For instance, cash is considered a low risk investment while equities
One of the most significant advantages of a preservation fund is that you are permitted to make one full or partial withdrawal from the fund before age 55. If there is a likelihood that you may need access to your
In a money market account, you will always know how much interest your funds will earn each month as these rates are available upfront. As a result, you will always know the value of the funds in your account on
Diversification is the cornerstone of portfolio construction and is based on the principle ‘don’t put all your eggs in one basket’. Diversification is a management tool that allows investors to spread investments to avoid hedging their bets on a single
Endowments are complex investment policies that generally cater for investors with a marginal tax rate of 30% or more and can also make useful estate planning tools. As the policyholder, you can elect who the life assured and nominate beneficiaries
Understanding the potential expenses you may be faced with at various stages during your retirement is key to developing realistic scenarios. For example, one could reasonably expect to spend more on travel during the first decade of your retirement with
In a nutshell, income protection is a long-term insurance benefit designed to replace or supplement your income in the event of illness or injury which temporarily or permanently prevents you from earning an income. While you may not perceive this
Endowments also offer tax benefits to investors with a marginal tax rate of more than 30% as it will reduce the tax payable on investment growth. However, it is important to bear in mind that endowments have restricted investment terms
It is never ideal to become financially dependent on someone else or to rely on another person to fund for your financial future, even if you believe that you and your partner or spouse have committed to being together forever.
