THE POWER OF AN ACTIVELY MANAGED INVESTMENT PORTFOLIO
Brenthurst Wealth Management has a team of highly-qualified investment advisors who provide clients with sound and impartial investment advice. Investment advice is provided on an individual basis. After the initial meeting with a new client, a detailed financial plan is proposed. The plan contains a tailor-made investment strategy for the prospective client, based on his/her specific circumstances, financial needs and objectives and his/her appetite for risk.
Once the initial investment is made, the client’s portfolio is actively managed according to the changing market conditions.
The client receives regular communication ( weekly / monthly market reports) and portfolio valuations as well as invitations to investment seminars, which are held quarterly.
RA are a great way to save for retirement in a tax-efficient manner. The RA can help you supplement your future capital at retirement whilst reducing your taxable income today. You won’t be able to access these funds until you reach the age of 55, and when you want to retire you will then be obligated to transfer at least two-thirds to a living annuity for income purposes, (unless it’s under a certain amount). Other restrictions also apply to the underlying investments – called Regulation 28 -and your adviser will need to assist you in choosing the correct funds to adhere to these rules. RA’s are a must for individuals who do not receive a pension or provident fund from their employers, or if you happen to receive additional income (such as rental on a property) and want to reduce your taxable income.
Preservation Funds were introduced to the industry to allow members of occupational funds (pension and provident funds) to “preserve” their benefits in another type of retirement vehicles until they reach their age of retirement in the event of retrenchment, resignation or dismissal. The two main benefits of using a preservation fund are the deferral of taxation and the conservation of one’s retirement benefits, with the option to withdraw prior to retirement. Withdrawal of one’s benefits before retirement should be carefully considered as pre-retirement taxation rules would apply. We recommend the assistance of a financial planner, when attempting to withdraw from a preservation fund. This is of utmost importance in order to ensure optimal utilisation of tax free allowances.
This retirement product allows for a tax-neutral transfer from any approved pension, provident and preservation fund or retirement annuity and requires that the investor withdraw a monthly income between 2,5% and 17,5% per year. Living Annuities can be invested as aggressively or as conservatively as the investor chooses, as long as income requirements have been weighed carefully against potential risks. In other words, no regulations are imposed, such as the case with RA’s and Preservation funds. The benefit of a living annuity over a guaranteed pension is as the name implies, it “lives on” for the investor’s nominated beneficiaries to either draw an income from or can be taken as a cash lump sum, keeping in mind that it would form part of their taxable income. It is also worth mentioning that Living Annuities are exempt from estate duty.
A major part of what we do at Brenthurst is helping our clients decide where to invest their retirement money, but what about the other money? This is what we refer to as “discretionary” investments and could be used for anything from children’s education -to- holidays – to – supplementing retirement funds. This investment will be made with after-tax money and remains fully liquid so that the funds may be redeemed whenever the need arises. Complete discretion can be used, in other words, it can be a “low risk with low expected return” with a more short term nature, such as the purchase of a house over the next year. Or it can be invested more aggressively for the long term, such as for a child’s future use. Discretionary investments can be either local or offshore, within the appropriate limits.
We assist clients in taking part of their discretionary money offshore for diversification purposes due to the fact that we believe there to be more investment opportunities in global markets than can be found locally. Selecting the appropriate investment opportunities from such a wide universe of options requires a great deal of research and expertise, and there can be a substantially greater risk involved, and therefore may not be suitable for every investor.
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Brenthurst Wealth Management (Pty) Ltd is a licensed Financial Services Provider (FSP), in terms of the Financial Advisory and Intermediary Services Act (“FAIS”) with licence number 7833. A copy of the licence is available upon request and is also clearly displayed at all of our branches nationwide. CLICK HERE TO FIND A BRANCH CLOSE TO YOU