Just imagine that you can ensure that your spouse gets an income stream immediately (well almost - within 45 days after your death) without having to wait for the normal formalities of pension or provident fund payments.
We do not like talking about death. We may think that we can avoid death by not thinking about it. It will happen to all of us one day. So here is a tidy way of planning to provide for this event.
Provided that you are younger than 69 (but older than 53 ) , you could place an amount of R5 to R10 million rand into a retirement annuity fund. You could also 'donate' this fund to your spouse and then put it into a retirement annuity fund. This fund could be turned into a living annuity fund immediately - you draw some cash from the fund and leave the rest to grow while drawing a small income.
This fund will be invested by a stock broker and you could have say 80% of your funds in a stock exchange portfolio - so you could have Sasol or Absa shares in your portfolio. Good news also is that you will not pay any commission, but rather a planning fee.
There are certain income tax and estate duty considerations that will work in your favour as well. To obtain more information, please call me 082 773 4022 or e-mail hansie@anamcara.co.za
