It is important for investors to take the time to assess their retirement investments at least once a year and check that they are on track to meet their goals.
Here are some important questions to assess your current retirement annuity, preservation fund or living annuity investments.
RETIREMENT ANNUITY/PRESERVATION FUND
Is your current investment appropriate?
- Assess whether your investment strategy and risk profile match your personal risk tolerance and that they are suitable to the number of years you have until you retire.
- Assess that the performance of your investment is similar to, or better than the market averages for your selected strategy and that your investment is not falling behind.
Are you receiving the necessary regular service and advice?
- Have you been contacted by your financial planner or advisor in the past year to review your investment strategy and fund performance?
- When last did your financial planner or advisor assess if you are contributing too much or too little to your retirement funds?
- Any change to your personal risk tolerance or investment goals will alter your required investment strategy resulting in a necessary change to your investment portfolio.
Actions to take if your investments do not suit your objectives or if you are unhappy with your provider:
- Establish whether changes can be made to your existing investment with your current provider.
- Request an independent assessment from an Investonline Portfolio Manager.
- You can transfer your retirement annuity or preservation fund to another institution or platform. This is called a Section 14 Transfer. This transfer is a retirement transfer and there are no tax implications when transferring.
LIVING ANNUITY
Is your current investment appropriate?
- Assess whether your investment strategy and risk profile match your personal risk tolerance and are suitable for the income that you are drawing.
- Assess that the performance of your investment is similar to, or better than the market averages for your selected strategy and that your investment is not falling behind.
Are you receiving the necessary regular service and advice?
- Have you been contacted by your financial planner or advisor in the past year to review your investment strategy and fund performance?
- When last did your financial planner or advisor review your living annuity income and the sustainability of the rate of income you are drawing?
- Any changes to your personal risk tolerance or investment goals will alter your required investment strategy resulting in a necessary change to your investment portfolio.
Actions to take if your investments do not suit your objectives or you are unhappy with your provider:
- Establish whether changes can be made to your existing investment with your current provider.
- Request an independent assessment from an Investonline Portfolio Manager.
- You can transfer your living annuity to another institution or platform. This is called a Directive 135 Transfer. You will continue to receive your living annuity income from the new investment and there are no tax implications to transfer.
INVESTONLINE’S ADVICE AND FINANCIAL PLANNING SERVICES
One of our Client Portfolio Managers can assist you with the assessment of your current investments. This is a worthwhile and no obligation exercise to check if your investments are on track.
Investonline can assist in one of two ways:
- A Client Portfolio Manager can complete a full financial plan for you taking into account your investments, expenses, income requirements and lifestyle goals. The full financial plan will include an assessment of your current financial standing, projections going forward and our recommended solutions, which will also consider tax efficiency and liquidity to meet your goals.
- If you do not require a full financial plan, we can assess an individual investment based on the information provided. This assessment will include a performance report and our comments on the suitability of the investment and portfolio strategy.
Please contact us to request a full financial plan or send a statement of your existing investments and one of our Client Portfolio Managers will contact you for your assessment shortly thereafter.
