I get invitations to address final year university students and young graduates by companies that offer learnership programs. One common complaint by some of the young graduates is that their parents are already dependent on them financially or are going to depend on them when they go on pension. They already have anxiety about money at such a young age. I always try to impress upon them that while we cannot change the past, I want them to manage their finances such that their children would not complain about them in the future.

So when I read about this investment of just R200 per month, I thought that there is NO Excuse any more. Every person must have this investment. R200 is a small amount but when you invest it over a  long period of time, it will make a huge difference. One of my customers is turning 28 this year and we did a quote for her. I will use it to illustrate the power of compound growth. Her monthly contribution will start at R200 and we are going to increase it by 10% every year.

After 27 years, she will be 55 years old
If the fund she invests in grows by 6%, her R200 will grow to R513 200.00  and
If the fund grows by 8% then her R200 will grow to R640 900.00   and
If the fund grows by 10% then her R200 will grow to R813 500.00

Features of the investment
 

  • This is a Retirement Annuity so the earliest you can withdraw your money from the fund is at age 55
  • The sooner you start, the better because you will enjoy a higher compound growth effect on your investment
  • You can start investing for your child, even if they are just a few months old- as long as they have an ID number. Invest for yourself before you invest for your child
  • Your monthly contributions are tax deductible so you will pay less tax every month and you might get a tax refund from SARS
  • You must not be older than 35 years to be able to invest R200 per month
  • If you are older than 35 years, you might have to start with R300 or R400 per month
  • You will not pay tax on interest, dividends or capital growth of your investment
  • As soon as you can, you must increase the monthly contribution so that you have a higher fund value at retirement
  • This particular investment comes with a bonus referred to as an Echo bonus. This will boost your investment returns even further. The longer your investment period, the higher your echo bonus is likely to be. For our customer, her bonus after 27 years is 50% so if her fund grows to R813 500.00, she will also get R406 750 bonus over and above her fund value. This will make her total investment to be R1 220 250 

This offer CLOSES on 29 May 2020

So if you have NOT yet started saving for retirement for yourself or your children, drop us an email info@thuthuka-sa.co.za or phone Telephone :011 568 2635
Cellphone: 064 513 1021

Tune into Radio Pulpit 657AM every Wednesday at 13h30 and phone in to give us your views
Studio line: 012 334 1322
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