As we all are well aware, we go through various life stages. One of these life stages is known as the “Young Accumulators stage” (i.e. people in their 20s).
One of the most important things our parents whimper to us is, “You must stop partying and start saving towards your retirement – look at me and learn from my mistakes!”.
Young Accumulators don’t see the importance of this as retirement is still a long way off, but they should jump at the opportunity and take advantage of compound interest over this time.
Those that do not belong to a pension or provident fund through their employer, as well as those earning additional non-retirement funding income, should make use of a retirement annuity.
Regulation 28 is a factor to keep in mind, but still being so young and with a time horizon of 25+ years, a young investor can take more risk as they have sufficient time to ride out the equity market fluctuations.
Young Accumulators should be cognizant of the fact that inflation and tax can hamper their efforts to save and accumulate wealth for their retirement, but a product such as a Retirement Annuity, eliminates that barrier as no tax (income tax, capital gains tax and dividends withholding tax) is payable on the growth within your Retirement Annuity.
It is safe to say that Young Accumulators also tend to spend money they do not have and have countless clothing accounts due to ill-disciplined behavior and recklessness which leads to debt counselling and eventually being blacklisted.
The power of a Retirement Annuity is phenomenal as the product is protected from creditors – so this protection is within reach of every person who contributes to a Retirement Fund, including self-employed individuals, through the mechanism of a Retirement Annuity.
Have children? Time to sit them down and explain the importance of life and how crucial it is to take advantage of contributing towards a Retirement Annuity and living within their means, because if left too late, they’ll be dependent on your Retirement Capital which could be a crucial game changer for you. Trend also has it, that they will have insufficient capital at retirement and will live with their children.
Time to set the facts straight – get in touch for financial advice or guidance regarding the way forward for your children and the importance of saving!
