Investments -

Investment Planning

Short‑, Medium‑ and Long‑Term Investing

When planning an investment, it is critical to understand what goals you want to achieve.

Short‑term goals (1–2 years) are typically aimed at objectives such as holidays or home repairs.
Medium‑term goals are more substantial, such as purchasing a new home or preparing to start your own business.
Long‑term goals focus on ensuring a financially worry‑free retirement.

Proper investment planning ensures that each goal is matched with the most appropriate investment strategy.

Unit Trusts

A unit trust investment is ideal for short‑ and medium‑term investments.

Benefits include:

Once‑off lump sum deposits
Monthly debit orders, or a combination of both
Multiple withdrawals with no penalties

Growth on the investment is subject to capital gains tax.

Endowments

Endowments are suitable for medium‑term investments, with a minimum investment term of five years or longer.

Key features include:

Taxation within the fund
Only one withdrawal allowed during the first five years

An endowment may consist of:

A once‑off lump sum investment
A monthly investment
A monthly investment with annual increases

This is a structured investment and may include penalties if terminated before the end of the investment term.

Retirement Annuity

A retirement annuity is an investment designed specifically for your retirement years. It is typically funded through a monthly contribution until retirement age.

Retirement annuities are structured investments governed by strict regulations.

At retirement:

You may invest the full lump sum into a living annuity, or
Withdraw up to one‑third in cash, with the remaining two‑thirds invested in a living annuity

Tax implications apply to the lump sum withdrawn. Monthly withdrawals are permitted at: