Investment FAQ's
Are there any funeral policies available for a person aged 85 years or over? I want to take out a policy for my grandmother.
As a rule it is virtually impossible to find a company that will accept a client at this advanced age. Insurance is all about risk pooling and pre-funding. As age rises so the mortality rates increase. Therefore octogenarians are a bad risk for Insurers all round, as in general they would be part of the pool for a shorter period than, say a 30 year old. I have identified one company. I do not know them and cannot endorse them or their product. They are however 80% owned by Assupol, which is well known. Their contact details are: Prosperity Life, 011 760 1416.
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What are the main exclusions when it comes to funeral cover?
Suicide, attempted suicide or self-inflicted injury.
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I am 43 years old I don't have provident or pension fund. What is a good investment for my retirement and for my family?
A retirement annuity is a good option for retirement savings if you do not have the option to join an employer provident or pension fund, as contributions can be deducted from your income for tax purposes.
Currently you can deduct contributions to a retirement annuity from your taxable income up to the greater of:
· 15% of your non-retirement funding taxable income per year
· R3 500 less current deductions to a pension fund, or
· R1 750
As you do not belong to any retirement fund, you should be able to deduct contributions equal to 15% of your taxable income. This percentage is expected to increase from 1 March 2016.
On a Retirement Annuity you can take up to one third of your proceeds in cash at retirement. The rest must be used to purchase a life or living annuity to provide you with income.
It is important to ensure that your retirement savings work for you by earning a decent return in excess of inflation. Most retirement annuities have a range investment options available, offering different levels of risk and investment return. Make sure you invest through a reputable institution, as your retirement investment must still be around when you retire.
Determining how much you should contribute and deciding on an appropriate investment strategy can be complex. A registered financial advisor will be able to provide you with advice appropriate to your specific situation.
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I am a lady of 39 years. I took out a retirement annuity in 2011 and I am paying around R190 per month. I am not sure with estimated calculations how much it will be the time I retire. Will I have enough to retire on?
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I am 44 years old and my endowment policy has just matured and I want to know if we should take out another policy or invest elsewhere. I have about R1500 a month that I can invest on top of that.
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I am 30 years old and unemployed and wish to put a lump sum of R50000 for an retirement annuity (RA). Do I qualify for a yearly tax relief and if so how much should I expect?
You can only get the tax relief on Retirement Annuity contributions if you have taxable income that you can deduct the contributions from.
However, if you do make a contribution that you do not get tax relief on in the year you made the contribution, you can get tax relief on it in a future year. The amount of the tax relief you get depends on your income (you can deduct contributions up to 15% of your non-pension funding income) and your marginal tax rate.
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