Page 30 - Waterfall Issue 10 2021

Waterfall News

INvESTINg IN A

LoCAL RETIREmENT

What are the options?

W hen it comes to • Considering that property is almost

retirement planning,
always an appreciating asset, the
most financial advisors
will recommend that chances are high that your investment
will increase in value over time.
you start planning well in advance. This • Should you invest in a house or
avoids unnecessary stress and ensures apartment within a mature lifestyle
that both you and your loved ones have estate, the property can be rented
peace of mind regarding the future. out, which will generate a monthly
income, until you are ready to retire
Currently, two of the most popular there yourself. This maximises the
retirement options are retirement utility the property provides to you.
annuities and property investments. • Property is a physical asset and
We chatted to Jacques Horn, from will therefore not be impacted as
Finsmart Asset Management, to Jacques Horn, Finsmart Asset Management severely in a market crash compared
find out more about the respective • Beneficiary nominations are to, for example, equities.
benefits of each asset class. possible, providing you with • By making clever investment
estate planning options. decisions you can expand on
The key benefits of retirement • Your retirement annuity assets are your property portfolio.
annuities include the following: protected from creditors, while held
• You have a wide selection of investment in a retirement annuity structure. The choice of investing in a retirement
funds from which to choose. These annuity, or property, is ultimately
can incorporate a variety of different The benefits of property situational and will completely depend
asset classes, within certain limits. investments include: on your personal goals and the long-
• Your investment will grow net of tax. This • Maintenance and repairs done term objective of your investment.
includes tax on interest, tax on capital to your rental property can That said, we highly recommend that
gains, and dividend withholding tax. potentially be deducted from tax. you consider one of the discussed
• Your contributions are tax deductible • Certain monthly expenses such as options, so that when you enter your
at up to 27.5% of taxable income, or electricity, rates and taxes, as well as golden years all you need do is relax.
remuneration per annum, but capped levies, may be claimed back from tax
at a maximum of R350 000 per year. on investment or rental properties. Should you have any further
• Excess contributions are rolled over to • The interest portion of your monthly questions, feel free to contact
the following year, therefore ensuring bond instalment may also be Jacques Horn on 078 519 9435, or
that you will not lose the tax deduction. deducted from rental income. email: jacques@finsmart.co.za

Buying a house in one of the
Waterfall Mature Lifestyle
Estates is the perfect
property investment for
your retirement years. The
ideal location, secure estate
setting, and state-of-the-
art facilities make for an
investment that is worth
every penny, and more.

28 Waterfall Issue 10 2021