living annuity
If leaving a financial legacy for your loved ones is important to you, you may favour the idea of a living annuity as opposed to a life annuity.
When purchasing a life annuity, the insurer assumes full responsibility for paying the annuitant’s income. The annuitant has no control or visibility over how the capital is invested or what returns the insurer earns.
Retirement planning is a comprehensive process that addresses the financial, logistical, emotional, social, and psychological aspects of your retirement. Start planning at least five years before your intended retirement date to work with your financial planner on strategies to ease
When a member leaves their employment, they have the option to leave the accumulated capital in the employer’s default investment strategy until retirement. The member also has the option of transferring the funds on a tax-neutral basis to a retirement
Where beneficiaries have been nominated on the investment, funds housed in a living annuity do not form part of your deceased estate and can be efficiently transferred to your loved ones in the event of your death.
If the member had no financial dependants at the time of death but had made beneficiary nominations, the trustees must first determine whether the member’s deceased estate is solvent. If not, then the death benefit – or a portion thereof
If you own shares in a business or are the owner of key person cover, note that the proceeds of business assurance policies are exempt from estate dutiable provided that the policy is correctly structured.
A well-constructed financial plan should help you use good debt strategically to increase your net worth. Remember, not all debt is bad – good debt, such as a home loan, can be leveraged to build equity in your property so
Life insurance policies can be used to create liquidity in your estate and to make financial provision for your spouse and/or beneficiaries. However, as with other estate planning tools, it is essential to correctly structure your policy so that it
A recent court ruling has found that capital held in a living annuity does not form part of the estate for the purposes of dividing assets on divorce. However, the future annuity stream can be used in determining the maintenance
