I turn 65 this year and have converted my investments into annuity income.
I will shortly come into a further R1.2m or so this year and want to use it to fund further monthly income in order to become independent of the need to work.
I calculate that these combined investments will make me comfortable without affecting the capital.
What will be the best and most tax-friendly investment vehicle given my circumstances?
Gustav Potgieter, Certified Financial Planner® of Aurum Trust responds:
There are different investment options, but it is difficult to give advice if the whole picture is not available, especially regarding income tax and the rest of your financial portfolio.
I am making the assumption that the annuity income is fully taxable and therefore, you are looking at a tax friendly income.
It is possible to structure a unit trust portfolio on an investment platform according to your risk profile and needs so that you receive a tax friendly income from it.
There are quite a number of investment platforms available and my recommendation would be to compare them, according to costs and their administrative service.
I recommend that you contact a Certified Financial Planner® who can assist you in doing a thorough analysis.
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