SOUTH AFRICAN SOLUTIONS

Establish a sound financial foundation

Ensure the pillars of your financial well-being are established to offer maximum growth, preservation and protection in South Africa.

Contact a Wealth Specialist

Individual risk

By partnering with some of the best insurance companies in the world, we ensure that you and your family have all the necessary financial help you need to deal with an unexpected life-changing event. We provide dependable advice to give you the right amount of cover to suit your age, income, lifestyle and family composition. The cover is optimised to ensure it provides for all your future needs.

Life cover

The best investment you can make is the one that will be the most prosperous when you need it most. In that light, life cover is an essential component of a well-rounded investment strategy. Your Wealth Specialist will design your life cover to suit your needs, including a lump sum payout, income for your dependents, payment of funeral expenses and estate taxes, and charitable contributions.

Your greatest asset is your ability to earn an income. It is important to prepare for the unexpected. When you cannot work anymore, or you need permanent care, permanent disability cover ensures that you can maintain your standard of living and pay for additional costs such as medical expenses or rehabilitation.

Your income enables you to maintain your lifestyle – from everyday expenses that cover the home you live in to providing for your family with food, healthcare and education. Income protection ensures that you can maintain your lifestyle without affecting your future financial plans. Your retirement planning and emergency funds remain untouched. Income protection replaces a portion of your income, and pays out until you can start working again.

As with other forms of risk cover, severe illness cover provides for your wellbeing when you need it most. You will receive a cash lump sum if you are diagnosed with one of the specified medical conditions or injuries listed in the policy. This means you can maintain your independence, as the policy reduces your financial burden.

Paying for a child’s education is one of the most significant investments you can make. It provides a measure of freedom to choose from a wider range of opportunities, and gives the young person a boost early in life. Your Wealth Specialist will structure an investment that makes best use of the long term, while ensuring that there is some measure of protection against market downturns.

Business risk

As an entrepreneur or business owner, it is important to know your business is prepared for unforeseen circumstances. By implementing a number of strategic solutions, the continued operation of the business, its long-term survival and the position of its owners can be protected.

Buy and sell

Through a buy and sell agreement, business partners take out life cover on each other to ensure the company can continue to operate if one of the partners should die. It gives remaining partners the means to survive the loss and rebuild.

Contingent liability is an insurance product that settles all of the company’s outstanding debt if the business owner passes away or becomes disabled. For business owners, this ensures that company liabilities do not affect their personal estates.

Some individuals play a critical role in the success of a business, and in many cases the business will not be able to exist without this person. Key person cover is a form of insurance cover that pays out when the person passes away or becomes disabled. With the funds, the company can provide adequate critical skills training to ensure the continuance of the business.

Investment planning

By carrying out a sophisticated risk-profiling assessment right from the start, we measure your tolerance to risk. Then, through transparent and straightforward advice, we create your unique investment plan for your wealth, balanced to suit your attitude to risk. As an independent brokerage, we’re not bound by the products of any one institution, which means we have the flexibility of sourcing the best solutions from the open marketplace.

Endowments

An endowment policy is a life insurance product with an investment focus. It is structured to pay out a lump sum when the endowment matures, or when the client passes away. The main benefit with an endowment is that there is a guaranteed payout at maturity, which protects against adverse market conditions.

Investing in a unit trust is an attractive way to get exposure to financial markets. Your regular or lump sum contribution is used to buy a basket of shares on a stock exchange, and your return is based on the performance of this basket of shares. Not all unit trusts are created equal. We have partnered with a select group of investment houses that provide customised solutions to our clients. Depending on your risk profile and investment goals, unit trusts may form part of your Carrick portfolio.

Tax-free savings accounts and other tax-free investment vehicles are among the best options for long-term investment and saving strategies. The returns from these investments are exempt from paying income tax, dividends tax or capital gains tax. The maximum contribution over your lifetime into a tax-free savings account is R500 000, with an annual limit of R36 000.

For discerning investors, a share portfolio is the cornerstone of their investment strategy. With selected key holdings they define their position in the market, and often the rest of their portfolio is built around it. At Carrick, our Wealth Specialist can provide expert advice to manage your share portfolio, and we may also appoint a discretionary fund manager to provide in-depth analysis and hands-on management.

Our structured products include defined capital and income guarantees, together with offshore diversification by virtue of being linked to developed market equity indices. All the elements of the structured note are typically protected in a single capital-protected endowment policy. Your initial investment is guaranteed, carries no currency risk and offers excellent tax efficiencies.

Retirement planning

The earlier you start planning for retirement, the better your chances of being financially prepared for it. It is important to give yourself the best chance for a happy and secure future. Our Wealth Specialists will help you set financial goals and priorities, then recommend specific steps to meet them. We may give advice on how you should allocate your investments; what kind of insurance you need; and explain how certain decisions may affect your taxes or estate.

Retirement annuities

For many clients, a retirement annuity (RA) takes the place of a traditional pension fund, and it is designed for individual investors. You are allowed to contribute up to 27.5% of your taxable income, with a limit of R350 000 per year.

If you belong to a company-sponsored pension fund, a preserver fund is put in place when you change jobs, or when you near retirement age, but you do not want to make use of the funds. Your investment and tax benefits remain intact, and you can transfer your funds back into a retirement vehicle at a later stage.

With a company-sponsored group scheme, your contributions and those of your employer are invested in a tax-efficient manner. At retirement, you can pay out a third of the pension as a lump sum, and the remaining portion is reinvested in a living annuity, allowing you to draw a regular income from your retirement.

When you reach retirement age, a living annuity provides you with a regular income from your retirement funds. Depending on your financial situation, your income can be as little as 2.5% per annum, with a maximum of 17.5% per annum. When you pass away, the remaining funds in your annuity form part of your estate.

A life annuity is an insurance product that guarantees a monthly pension for the rest of your life. The product safeguards you against the risks of living longer than expected, or depleting your funds too quickly because of poor investment returns. When you pass away, no funds are passed on to your estate, and any remaining savings are lost.

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