International retirement plans
International retirement plans for your security
The key to enjoying your golden years lies in savvy retirement planning, although a local South African Retirement Annuity or Pension fund is an important part of any financial plan the benefits of International retirement plans cannot be ignored.
Using the correct international retirement plan can improve your tax efficiency, diversify your investment exposure thus reducing your risk and preserve your wealth for the next generation, all this helps to ensure that you have a higher level of financial security.
Effective retirement planning requires significant thought; let us show you how to keep your finances in shape by selecting the appropriate investment types and vehicles to keep more of your money in your pocket and grow what you already have.
It is important to understand that an International Retirement Plan is not a replacement of your local retirement annuity or pension plan, but rather the next step in moving your retirement planning to a more advanced stage.
When you think about it the largest expense any of us has is tax! To prevent any shortfalls in your retirement income, you need to know how to make use of certain tax benefits offered by combining your local retirement investments with your offshore retirement investments since the 2 are complimentary and work well together.
Benefits of international retirement plans
Offshore retirement plans are a very attractive option for individuals who:
The international retirement plan can be structured in a way that allows you to take advantage of the favourable tax treatment that is offered in certain jurisdictions to investors. It is important to note;
Regardless of where you are in the world, you can make contributions to your international retirement plan. Contributions are also very flexible in that you can tailor them (increase, decrease or stop contributions etc) to fit your personal circumstances.
You can add lump-sum contributions at the beginning of your investment or at any time during the term.
We believe in focusing on strategies that reduce costs and save taxes since if achieved these are “guaranteed returns”. It is far easier to save 20% - 40% in tax and fees than it is to guarantee a return of 20% - 40% in the market.
A saving is as good as a return. Whether you make more money or just get to keep more of what you already made the effect is the same but keeping more of what you already have is far easier.
Comparison between local Retirement products and an International Retirement Plan
What are some of the things you can do to retire early?
The most important thing to remember when having the idea in mind of retiring early is ‘saving’. From as young as you can afford to ramp up your savings, do so.
The point cannot be stressed enough that in order to be able to retire early, you have to save intelligently. Tracking your finances and putting an end to mindless spending is a good start.
Keep in mind that in a room of 9 of your friends and family only one of you is likely to be able to retire according to South African retirement statistics. Are you that one?
In the pursuit of early retirement, sit down and have a serious think about how you would like to spend your time once you are no longer working. Lifestyle planning is an imperative step towards reaching your retirement goals. Make sure that you have an independent financial planner who you can trust to help you achieve financial stability.