Retirement Portfolio Frequently Asked Questions
When is the right time to start investing for retirement and how much should I invest?
One of the main risks retirees face is outliving their retirement savings. Many of us will live for 30 years beyond retirement age, so we expect our retirement savings to ‘work’ for as long as we have worked. With this in mind, the ideal time to start investing for your retirement is with your first pay cheque. A good rule of thumb to allow you to maintain your lifestyle later on is to save 17% of your salary starting at age 25. If you start later, you will naturally need to invest more or consider retiring later. The lump sum required to open a retirement portfolio is R20 000.
Do I have to commit to a fixed monthly premium for a set term?
No. When you open a retirement portfolio, there is no fixed amount that you need to commit to for a set investment period. It’s your investment – you decide how much, when and how you would like to invest.
However, you can:
- Set up a monthly debit order of R500 or more which you can change, stop and restart as your needs change.
- Start with a once-off lump sum (minimum R20 000) or
- Add a smaller lump sum (R500 or more) with your debit order.
- Once your investment has started, you can add lump sums of R500 or more at any time.
What is a corporate retirement investment portfolio?
A corporate investment portfolio is a collection of all employees’ pension benefits of a corporate that are being invested in stocks, bonds, cash, real estate or other assets with the hope for growth. This is a portfolio that is only available for corporates. We as Vindew Wealth manage and analyse which assets are undervalued by the market that can be bought and added into the portfolio.
How much can be invested and when?
Corporates can open their retirement investment portfolios from R100 000, and this can be done at any time. There are no fixed periods.
Can the corporate withdraw from the portfolio if need be?
Yes. Returns can be withdrawn at any time. However, such withdrawals may need to be first approved by the portfolio manager. This is done to minimise risk. The portfolio manager will analyse the risk on the portfolio based on the number of assets owned and the margin level required to sustain the currently owned assets against the margin level to be left should a certain amount be withdrawn from the overall portfolio balance.
Some withdrawals may be delayed and some may be processed immediately, based on the risk analysis of the portfolio. After the portfolio manager has approved the withdrawal, the corporate will be payed accordingly after all administration has been done and all service fees have been deducted. This will take three to five business days for the money to reflect in the bank account.
Is the corporate allowed to close the portfolio if need be?
Yes. However, the portfolio manager will advise on the right time to close it if there are some assets owned that are not yet in profit, or unless the corporate wants to immediately close all assets even though they are on a loss. If all assets owned are in profit, the portfolio can be closed immediately as per the corporate’s instruction.