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Retirement funds Investment Changes

Retirement funds Investment Changes

The South African Government has made it very clear that retirement savings need to be protected and the new rules for fund managers are a further indication of this.

No more than 75% of a funds capital can be invested in Equities which relates to Equities both on the local exchange as well as foreign exchanges. A retirement fund may also not acquire more than a 15% stake in any company that has a market capitalization of over R20 Billion. If you are not afraid of the potential risks of the previous laws and are thinking of taking out any Individual retirement funding contracts, you have until April 1 2011 to make investments and any Investment concluded before this date will be exempt.  

Retirement Investing has become increasingly complex with the multitude of funds available to Asset management companies to invest in and it is highly recommended that you take advantage of the free consultation offered. The industry is becoming increasingly regulated with serious risk aversion by the government and while this is a very prudent thing to do in order to protect the average salary earner, there are long established funds and Investment opportunities which could provide far greater returns.

Retirement funding needs to be done through consultation with an experienced company and with the indutry having to disclose compensation, there will be no surprises when it comes time to start receiving your funds.

It is always best to establish a relationship with your financial advisor, retirement funding is a long term exercise that should be looked at every year or so to optimise investment opportunities and take advantage of any tax benefits that are offered to retirement investments after the budget speech every year.

It is that time of year again and we would highly recommend that you have a chat to one of the investment advisors on call.

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