Your ever-increasing chances of living to an older age and the timing of your retirement are important factors to consider. When you invest, preserving and growing capital, and reducing the effects of market volatility on your portfolio, are critical.
Darren Burns, Head of Investment Solutions at Glacier Invest, explains how the Glacier Invest Real Growth Solutions help you achieve your investment goals and the role they can play in endowments.
How Real Growth Solutions can be used in an endowment
The Glacier Invest Real Growth Solutions reduce volatility, provide access to underlying investment structures not readily available to an investor, and enable you to use your endowment as a source of income after the initial mandated investment period of five years. They are currently accessible on the Glacier platform, through the Glacier Vantage Life Plan, which is an endowment and through the Glacier Vantage Plan, which is a sinking fund.
The tools that power our solutions
We use portfolio construction tools that, to an extent, can reduce the impact of living longer than expected or retiring just before or just after a market slump. This innovation is achieved through the use of non-traditional investment tools that historically were not available to the average investor. The tools used are hedge funds, smoothing techniques and alternative assets. Our solutions are also well-diversified, with asset manager strategies that are different, yet complement each other to achieve a smoother return profile.
More about endowments
Endowments are tax-efficient investments with a minimum investment period, by law, of five years. They have many advantages, which make them attractive savings vehicles, not only for the near future but also for the longer term, such as to supplement income in retirement. In a nutshell, here’s what they offer:
• A death benefit: An endowment is linked to insured lives. You have to appoint at least one life insured. The policy pays out on the death of the last life insured, to the nominated beneficiary (or beneficiaries).
• Estate-planning benefits: Nominating a beneficiary not only ensures that a loved one receives the proceeds of your investment on your death – it can also bring about savings on executor fees. Payment to the beneficiary can also take place speedily, as it is not dependent on the winding up of the estate.
• Insolvency protection: If your endowment has been invested for three years, the value is protected against creditors. Depending on the beneficiary selection, the protection is applied for a period of five years from the date on which the policy benefits were provided to the beneficiaries.
• Tax-efficiency: If your marginal tax rate is higher than 30%, you could benefit from income and capital gains tax advantages in this investment. We take care of the tax administration on your behalf.
How to access the Glacier Invest Real Growth Solutions
The Glacier Invest Real Growth Solutions are currently accessible on the Glacier platform, in the Glacier Vantage Life Plan, which is an endowment and via the Glacier Vantage Plan, a sinking fund. They aim to provide investment returns that can sustain annual income withdrawals of 5% and 6% but more importantly, without eating into your capital on an inflation-adjusted basis. These solutions also aim to provide said returns at a lower level of volatility than other investment portfolios in comparable fund categories.
In these times of uncertainty, protecting your investment capital and ensuring that the investment growth keeps up with your withdrawal rates is important. Investing for the future requires some protection against market downturns and volatility, and investment returns that will keep up with regular withdrawals. The Glacier Invest Real Growth Solutions aim to do just that.
Click here to access the brochure.
Glacier Financial Solutions (Pty) Ltd is a licensed discretionary financial services provider, trading as Glacier Invest FSP 770.
Sanlam Multi Manager International (Pty) Ltd FSP 845 is a licensed discretionary financial services provider, acting as Juristic Representative under Glacier Invest (Pty) Ltd.
The Glacier Invest Real Growth Solutions are managed by Glacier Financial Solutions (Pty) Ltd.
The Glacier Vantage Life Plan (endowment) and the Glacier Vantage Plan (sinking fund) are underwritten by Sanlam Life Insurance Ltd, a licensed financial services provider.
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