For many of us, whether we like it or not, retirement planning should be on our minds. If you want to retire comfortably, your saving and investment behaviour now, will make all the difference. Galileo Capital, helmed by Warren Ingram, has launched managed Retirement Annuity (RA) and Tax Free Savings Account (TFSA) portfolios, which could be the right launchpad!
Consistent saving, smart investing and mindful spending could give you the opportunity to reach retirement stardom.
Galileo Capital Balanced Income RA:
Galileo Capital Balanced Income TFSA Portfolio:
Portfolios that are in RA accounts, need to be Regulation 28 compliant.
Let's talk Regulation 28
Regulation 28 is part of the pension fund act and aims to ensure individuals’ hard-earned savings are invested in a sensible way and protected from poorly diversified portfolio’s. This means that only a certain percentage allocation can be invested as follows:
Foreign assets with an exposure of up to 30% of the investment value, with an allowance for an additional 10% for African (ex-South Africa) investments, up to 60% as a medium-equity investment and property (up to 25%). Regulation 28 will not hold more than 85% exposure to equities and property combined and will never have less than 60% exposure to South African assets.
Pretty nifty hey!
RA Tax benefits
Retirement annuities also have massive tax benefits, which means more for you, and less for the tax man. RA’s are great in terms of “Keeping your hands out of the cookie jar”. Because your funds are ring-fenced for a fixed term, you can not tap into the funds beforehand. 27.5% of your yearly taxable income can be invested per year at a limit of R350 000 can go into your RA per year.
R33 000 per year. Invest. Save. With no tax to the tax man, at all. This is the Tax-Free Savings Account (TFSA) and Galileo Capital now have their TFSA account on EasyEquities. In the Tax Free Savings Account, you can invest in authorised ETF’s (Exchange Traded funds), and if you are looking for a great way to supplement retirement funds, this is the way to go!
Who is Galileo Capital?
"At Galileo Capital, we believe in questioning the status quo. We are continuously investigating new possibilities and striving to find innovative ways to improve on accepted methodologies and conventions. We believe that no system or process is ever perfect - there is always room for improvement. Our aim is to find those solutions that enable us to supply our clients with the best possible products and services. Hence our slogan: Challenging conventional wisdom"
You can listen to this #CapeTalk interview with Warren Ingram, Director of Galileo Capital about how you can retire, while still young.
Until Next time!
Galileo Capital is a Registered Financial Services Provider (FSP), approved and regulated by the FSCA - 46263.