How much cash should I take at retirement?

How much cash should I take at retirement? Although important, tax is only one of various aspects to consider.

In addition to tax, it is advisable to take debt, large purchases and future emergency requirements into consideration when determining an appropriate amount of cash to take at retirement. Picture: Shutterstock In addition to tax, it is advisable to take debt, large purchases and future emergency requirements into consideration when determining an appropriate amount of cash to take at retirement. Picture: Shutterstock
It’s a question many soon-to-be retirees grapple with – how much cash to take at retirement?

Proceed to Source : Moneyweb

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How to pay zero tax in retirement

When an acquaintance recently turned 64, he said he “couldn’t wait” for his next birthday.

The people around the table at his birthday party were taken aback. Most people don’t look forward to getting older. Why was he so excited?

“Because from next year, I will pay less tax!” he quipped.

He was right, of course. At age 65, individuals get an additional tax rebate. A higher annual interest exemption also becomes available.

The comment sparked a question. What type of income would a couple be able to draw in retirement before they would have to start paying tax? Naturally, there are various ways of reducing one’s tax liability, particularly if you use clever structures, avoidance techniques and the like, but what if you kept it simple? In other words, no contributions to retirement annuities or investments in Section 12J venture capital companies – just using the main tax thresholds, rebates and exemptions allowed?

 

Proceed to Source : Moneyweb

Retirement advice if you are approaching 50

There are many reasons to celebrate turning 50 – it also means retirement is just around the corner, and it’s time to get serious about planning.

Like every stage of life, your 50s brings certain steps you should take to begin preparing for retirement. By the time you’re 50 you should have laid the groundwork for retirement and have a growing nest egg. But what do you do if you haven’t been paying attention to your retirement fund? First, don’t panic. There’s still plenty you can do to get your retirement set up and enter your golden years debt free.

Here’s your retirement checklist for your 50’s:

Proceed to Source : News24

Three things to consider before cashing out your retirement benefits

The decision to cash out retirement benefits when changing jobs is arguably the biggest contributor to many pensioners’ dire financial position.

International research suggests that millennials – the generation born between 1981 and 1996 – are most at risk since they tend to change jobs more often than previous generations and will need to overcome the urge to cash out their retirement benefits more frequently.

While there may be instances where it could make sense to cash out retirement benefits, it should be the last resort and it should only be done after carefully considering the long-term implications. Here are some things to ponder.

Proceed to Source : Moneyweb

Expert retirement savings tips for late starters

By: BayHill Capital

Medical advancements mean that we can hope to live much longer lives, but this raises the key question: how do you save enough money to ensure that your retirement funds don’t dry up too soon – especially if you’re a late starter?

The answer, says BayHill Capital Wealth Advisor Mbulelo Musa, is to make sure that you start saving as soon as possible, and to think carefully about the way in which you save and invest.

Proceed to Source : Cover

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Here’s how much you should be saving for retirement

South Africa has a poor record when it comes to saving for retirement.

“South Africa’s retirement landscape looks terrible,” says 10X Investments chief executive officer, Steven Nathan. Citing the National Treasury, he said that as many as 94% of South Africans can’t afford to retire.

Proceed to Source : BusinessTech

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