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Retirement Planning

At Fairtree, we approach retirement planning differently.

 

We do not only believe in “simply retiring”, but rather “rerouting” into the next phase of your life. We also understand that preparing yourself for the next chapter, involves so much more than getting your financial affairs in order. Your relationships, health and wellness, personal development, career paths, social and spiritual lives are equally important when planning for the future.

 

Learn more about the most important factors to consider when planning for your financial and overall wellbeing before and after retirement.

Which phase of life do you find yourself?

Optimising this Phase

Starting to save toward your retiring years while you are young is beneficial for a number of reasons.
Tax benefits and the power of compound growth work together to generate great growth inside of your investment portfolio.

Phase Challenges

Time is tight

Time is a precious commodity, and the most time-demanding phase of life is usually these “Starting out” years. How do you excel at your career, raise children, maintain a healthy marriage and other relationships, without neglecting your financial wellbeing in the long run?

Money must multi-task

Taking it one step further, how do you juggle putting food on the table, buying a house, paying school fees, going on holiday, whilst saving toward your retirement years?

Frequently Asked Questions

The FAQs marked with a (*) includes engaging material to help you navigate this phase and make wise financial decisions that your future self will thank you for

The earlier, the better. The reason for this is compound growth and tax benefits.

Making Money Work For  You

YearsPrinciple AmountExpected ReturnGrowthCompound Amount
1R1 000,008%R80.00R1 080,00
2R1 080,008%R86.40R1 166,40
3R1 166,408%R93,31R1 259,72
4R1 259,728%R100,78R1 360,49
5R1 360,498%R108,84R1 469,33
6R1 469,338%R117,55R1 586,87
7R1 586,878%R126,95R1 713,82
8R1 713,828%R137,11R1 850,93
9R1 850,938%R148,07R1 999,00
10R1 999,008%R159,92R2 158,92
Years Principle Amount Expected Return Growth Compound Amount
1 R1 000,00 8% R80.00 R1 080,00
2 R1 080,00 8% R86.40 R1 166,40
3 R1 166,40 8% R93,31 R1 259,72
4 R1 259,72 8% R100,78 R1 360,49
5 R1 360,49 8% R108,84 R1 469,33
6 R1 469,33 8% R117,55 R1 586,87
7 R1 586,87 8% R126,95 R1 713,82
8 R1 713,82 8% R137,11 R1 850,93
9 R1 850,93 8% R148,07 R1 999,00
10 R1 999,00 8% R159,92 R2 158,92

R1 000 invested over 10 years (interest rate of 8%) becomes R2 158.92 R1000 versus R2 158.92 more than doubled up on your money, just by being patient.

 

R1000 invested over 40 years (interest rate of 8%) becomes R21 724.52

Perhaps there is a way in which you could free up some money inside your monthly financial blueprint (budget). Adjusting your existing lifestyle, eating out less, closing some credit accounts, shopping at different stores and so forth. If you do not have a monthly financial blueprint, perhaps start with laying one out. You could be surprised to figure out where your monies is being spent each month.

Download our Budgeting tool.

The amount of money needed for retirement will be different from person-to-person. The answer, of course, will be based on anticipated life expectancy and different needs during your retirement years. This will all depend on your post-retirement lifestyle. While some people will want to travel and spoil their grandkids, others will want a different lifestyle. You can use a calculated cash flow estimate and a blend of strategies to forecast how much you need to invest today, in order to generate above-inflation growth to sustain you throughout your post-retirement years.

Download our Retirement calculator.

 

*For some thought-provoking trigger questions about retiring expenses, please see below.

 

Trigger questions for adjusting financial blueprint for retirement

Your level of debt at retirement:

  • Will the mortgage bond be repaid?
  • Will you have motor financing in place?
  • Will all other loans/overdrafts be repaid in full?

How will lifestyle expenses look compared to pre-retirement?

  • Will there be additional expenses (like domestic help / frail care)?
  • Are you planning on travelling or entertaining more?
  • By how much would your medical costs increase?
  • Where will you want to live and how much will it cost?

Will you need any lump sums at retirement?

  • Would you need to purchase a new car at retirement, etc?

Will you have financial dependents at retirement?

  • Will all your children be able to take care of themselves financially?
  • Is there perhaps a disabled family member you have to take care of?
  • Will your spouse be dependent on your retirement funding?

What obligations will fall away at retirement?

  • By how much would your tax obligations decrease?
  • Contributions to retirement funding will fall away.
  • Any debt that has been repaid.

There are a number of critical factors (term to retirement, current age, inflation, taxes, income drawdown at retirement, life expectancy, current provisions, escalation rates and lifestyle) that one needs to take into consideration when answering this question. For example, someone who begins their monthly retirement savings at 45-years-of-age, will need to contribute larger monthly amounts, than someone who started saving toward retirement at 26-years-of-age. Personalised calculations are required to better determine this answer.

Do a basic retirement calculation using our tool. 

Download our Retirement calculator.

Contributing to a pension fund at work is highly beneficial, but it might not be enough to provide you with a sustainable income during retirement. Contributions by yourself, the employer or both, are usually based on a certain percentage of your current remuneration and is not calculated based on your desired lifestyle once retired. You can calculate how much you need to save in addition to your monthly pension fund contribution by using our tool. 

Download our Retirement calculator.

Making use of a Retirement Annuity is not the only option, but given some of its benefits, it remains one of the preferred investment vehicles for this purpose. Contributions to your Retirement Annuity are tax deductible up until a certain percentage of your remuneration or taxable income (whichever is greater) and you are not taxed on interest, dividends or capital gains while being invested. Furthermore, when you retire from the fund, you can take a certain lumpsum amount without being taxed on the withdrawal.

Fairtree has a large product offering of long-only funds and alternative investments like private equity, hedge funds and commodities. We see balanced investing differently. We are the first in South Africa to combine alternative asset classes together with traditional asset classes inside of bespoke portfolios for our clients. This provides our clients with a unique diversified portfolio which includes best of breed long-only strategies and award-winning hedge fund strategies.

Please feel free to contact us and one of our consultants will assist you with setting up your investment.

Contact us

If you are already in retirement, please go to the “70+” section.

Optimising this Phase

There is usually a lot more stability in your career and personal life in this phase. You’ll feel that you’ve reached a certain level of maturity, knowing who you are and what you truly value in life. This is very powerful, as the “slowing down” phase is fast approaching. Utilise this phase to think about the legacy you want to leave behind, how you envision your “slowing down” years to look like and how to prepare yourself for it.

Phase Challenges

Paradigm Shift

During this phase, the majority of people become acutely aware of the fact that their current savings will not be able to support their retirement years and that they will have to work for longer. “Working longer” comes with its own challenges in this day and age, due to the exponential rate of change we experience: increased life expectancy, adopting continuous learning and development as opposed to “traditional education periods” and remaining engaged beyond the traditional retirement age of 55 has become more of a requirement.

Rethink, repurpose, reroute

Transitioning into retirement can be more emotionally challenging than most people realize. Retiring involves large changes to lifestyle and habits. As sudden shifts take place in daily routines, finances and relationships, some retirees struggle to stay mentally and physically active, to maintain their sense of worth, to find new purpose and a place of belonging in different circles of society. Preparing yourself for the “slowing down” phase requires more than financial planning, it calls for you to rethink, repurpose, reroute.

Frequently Asked Questions

The FAQs marked with a (*) includes engaging material to help you navigate this phase and make wise financial decisions that your future self will thank you for

The amount of money needed for retirement will be different from person-to-person. The answer, of course, will be based on anticipated life expectancy and different needs during your retirement years. This will all depend on your post-retirement lifestyle. While some people will want to travel and spoil their grandkids, others will want a different lifestyle. You can use a calculated cash flow estimate and a blend of strategies to forecast how much you need to invest today, in order to generate above-inflation growth to sustain you throughout your post-retirement years.

Download our Retirement calculator.

 

*For some thought-provoking trigger questions about retiring expenses, please see below.

 

Trigger questions for adjusting financial blueprint for retirement

Your level of debt at retirement:

  • Will the mortgage bond be repaid?
  • Will you have motor financing in place?
  • Will all other loans/overdrafts be repaid in full?

How will lifestyle expenses look compared to pre-retirement?

  • Will there be additional expenses (like domestic help / frail care)?
  • Are you planning on travelling or entertaining more?
  • By how much would your medical costs increase?
  • Where will you want to live and how much will it cost?

Will you need any lump sums at retirement?

  • Would you need to purchase a new car at retirement, etc?

Will you have financial dependents at retirement?

  • Will all your children be able to take care of themselves financially?
  • Is there perhaps a disabled family member you have to take care of? 
  • Will your spouse be dependent on your retirement funding?

What obligations will fall away at retirement?

  • By how much would your tax obligations decrease?
  • Contributions to retirement funding will fall away.
  • Any debt that has been repaid.

There are a number of critical factors (term to retirement, current age, inflation, taxes, income drawdown at retirement, life expectancy, current provisions, escalation rates and lifestyle) that one needs to take into consideration when answering this question. For example, someone who begins their monthly retirement savings at 45-years-of-age, will need to contribute larger monthly amounts, than someone who started saving toward retirement at 26-years-of-age. Personalised calculations are required to better determine this answer.

Do a basic retirement calculation using our tool.

Download our Retirement calculator.

Perhaps there is a way in which you could free up some money inside your monthly financial blueprint (budget). Adjusting your existing lifestyle, eating out less, closing some credit accounts, shopping at different stores and so forth. If you do not have a monthly financial blueprint, perhaps start with laying one out. You could be surprised to figure out where your monies is being spent each month.

Download our Retirement calculator.

Contributing to a pension fund at work is highly beneficial, but it might not be enough to provide you with a sustainable income during retirement. Contributions by you, the employer or both, are usually based on a certain percentage of your current remuneration and is not calculated based on your desired lifestyle once retired. You can calculate how much you need to save in addition to your monthly pension fund contribution by using our tool.

Download our Retirement calculator.

Making use of a Retirement Annuity is not the only option, but given some of its benefits, it remains one of the preferred investment vehicles for this purpose. Contributions to your Retirement Annuity are tax-deductible up until a certain percentage of your remuneration or taxable income (whichever is greater) and you’re not taxed on interest, dividends or capital gains while being invested. Furthermore, when you retire from the fund, you can take a certain lump sum amount without being taxed on the withdrawal.

Fairtree has a large product offering of long-only funds and alternative investments like private equity, hedge funds and commodities. We see balanced investing differently. We are the first in South Africa to combine alternative asset classes together with traditional asset classes inside of bespoke portfolios for our clients. This provides our clients with a unique diversified portfolio which includes best of breed long-only strategies and award-winning hedge fund strategies.

Please feel free to contact us and one of our consultants will assist you with setting up your investment.

Contact us

Optimising this Phase

At about 70 years old, the majority of people would have stopped working and most desire slowing down in life, being comfortable and content. To remain active and relevant, you can volunteer to help out where the need arises or serve a mentoring role within the community, sharing your skills and experience. Pursuing your hobbies and enjoying time with friends and family (especially the grandchildren) can all be done at your own pace and leisure.

Phase Challenges

Money Must Stretch

If you have “officially retired” it means that you will not be receiving an active, regular income (except if you receive money from another pastime) and you would be reliant on your retirement savings to provide a sustainable flow of income. It is crucial to ensure that your retirement savings are invested in the most constructive investment portfolios, to provide capital protection and optimal growth opportunities. Furthermore, have a good understanding of how long your money will last and plan accordingly.

Frequently Asked Questions

The FAQs marked with a (*) includes engaging material to help you navigate this phase and make wise financial decisions that your future self will thank you for

Ensuring that your retirement savings will last for your lifetime is, from a financial perspective, a key aspect to consider. You will need to consider a number of factors, such as: the amount of income you withdraw to fund your lifestyle, how long you live, the return on your retirement portfolio, any taxes payable and the risk of inflation. Inflation risk is often overlooked and by definition means that the "actual value" / "buying power" of your investment returns will be reduced by increasing inflation. This will especially pose a threat to your retirement savings if the return generated by your investment portfolio(s) does not out-perform the inflation rate, as you will gradually draw down on your capital until you eventually run out of money.

 

Make sure that your retirement plan and portfolio are well-constructed to protect your capital, whilst achieving much-needed growth.

Fairtree is the first in South Africa to blend traditional long-only unit trusts together with alternative asset classes like hedge funds and commodities. Our Personalised Income Portfolio (PIP) Strategy allows for monthly withdrawals and long-term capital growth simultaneously. This allows for safe short-term income withdrawals to take place without disrupting the overall portfolio’s growth for the long term. The portfolio is divided into three parts, one-part income and two-parts growth, each serving a different purpose to maximise capital growth, increase investment longevity and sustain income for as long as possible. This portfolio is designed to rebalance once the income part needs to be replenished.

Watch our video on Post Retirement Strategy here.

View our Living Annuities section 

This is a very difficult question to answer and will be based on your specific scenario and certain assumptions: what is your current age and your life expectancy, how much retirement capital do you have available, what is the rate of return on your investment portfolio, how much would you need to withdraw every month to fund your lifestyle, what is the rate of inflation and so forth. A cash flow calculation will give you a good idea of how long your retirement savings will be able to provide you with a sustainable income.

Fairtree is the first in South Africa to blend traditional long-only unit trusts together with alternative asset classes like hedge funds and commodities. Our Personalised Income Portfolio (PIP) Strategy allows for monthly withdrawals and long-term capital growth simultaneously. This allows for safe short-term income withdrawals to take place without disrupting the overall portfolio’s growth for the long term. The portfolio is divided into three parts, one-part income and two-parts growth, each serving a different purpose to maximise capital growth, increase investment longevity and sustain income for as long as possible. This portfolio is designed to rebalance once the income part needs to be replenished. A combination of our award-winning hedge funds has been included in the third growth portion of the portfolio. There is also a third growth portion option that holds long-only unit trusts rather than hedge funds, should that be your preference.

Watch our video on Post Retirement Strategy here.

View our Living Annuities section 

A Living Annuity is a post-retirement product and is available to you if you’re retiring from a Pension Fund, Provident Fund, Preservation Fund or a Retirement Annuity. It is essentially an investment in your name, which will pay you a regular income (which is taxable), whether monthly, quarterly, bi-annually or annually. You have the flexibility to set your income amount on an annual basis, however legislation permits withdrawals only within a certain band. This is to protect investors from depleting their retirement funds too quickly and being left without any financial means.

 

Living Annuities are very attractive as you can decide on the investment composition within the product without being restricted in terms of asset class exposure, jurisdictions and so forth, giving you the freedom to invest as conservatively or aggressively as you’d like. In the event of your death, the capital can be left to your nominated beneficiaries without attracting any estate duty.

Please feel free to contact us and one of our consultants will assist you with setting up your investment.

Contact us

Optimising this Phase

Starting to save toward your retiring years while you are young is beneficial for a number of reasons.
Tax benefits and the power of compound growth work together to generate great growth inside of your investment portfolio.

Phase Challenges

Time is tight

Time is a precious commodity, and the most time-demanding phase of life is usually these “Starting out” years. How do you excel at your career, raise children, maintain a healthy marriage and other relationships, without neglecting your financial wellbeing in the long run?

Money must multi-task

Taking it one step further, how do you juggle putting food on the table, buying a house, paying school fees, going on holiday, whilst saving toward your retirement years?

Frequently Asked Questions

The FAQs marked with a (*) includes engaging material to help you navigate this phase and make wise financial decisions that your future self will thank you for

The earlier, the better. The reason for this is compound growth and tax benefits.

Making Money Work For  You

YearsPrinciple AmountExpected ReturnGrowthCompound Amount
1R1 000,008%R80.00R1 080,00
2R1 080,008%R86.40R1 166,40
3R1 166,408%R93,31R1 259,72
4R1 259,728%R100,78R1 360,49
5R1 360,498%R108,84R1 469,33
6R1 469,338%R117,55R1 586,87
7R1 586,878%R126,95R1 713,82
8R1 713,828%R137,11R1 850,93
9R1 850,938%R148,07R1 999,00
10R1 999,008%R159,92R2 158,92
Years Principle Amount Expected Return Growth Compound Amount
1 R1 000,00 8% R80.00 R1 080,00
2 R1 080,00 8% R86.40 R1 166,40
3 R1 166,40 8% R93,31 R1 259,72
4 R1 259,72 8% R100,78 R1 360,49
5 R1 360,49 8% R108,84 R1 469,33
6 R1 469,33 8% R117,55 R1 586,87
7 R1 586,87 8% R126,95 R1 713,82
8 R1 713,82 8% R137,11 R1 850,93
9 R1 850,93 8% R148,07 R1 999,00
10 R1 999,00 8% R159,92 R2 158,92

R1 000 invested over 10 years (interest rate of 8%) becomes R2 158.92 R1000 versus R2 158.92 more than doubled up on your money, just by being patient.

 

R1000 invested over 40 years (interest rate of 8%) becomes R21 724.52

Perhaps there is a way in which you could free up some money inside your monthly financial blueprint (budget). Adjusting your existing lifestyle, eating out less, closing some credit accounts, shopping at different stores and so forth. If you do not have a monthly financial blueprint, perhaps start with laying one out. You could be surprised to figure out where your monies is being spent each month.

Download our Budgeting tool.

The amount of money needed for retirement will be different from person-to-person. The answer, of course, will be based on anticipated life expectancy and different needs during your retirement years. This will all depend on your post-retirement lifestyle. While some people will want to travel and spoil their grandkids, others will want a different lifestyle. You can use a calculated cash flow estimate and a blend of strategies to forecast how much you need to invest today, in order to generate above-inflation growth to sustain you throughout your post-retirement years.

Download our Retirement calculator.

 

*For some thought-provoking trigger questions about retiring expenses, please see below.

 

Trigger questions for adjusting financial blueprint for retirement

Your level of debt at retirement:

  • Will the mortgage bond be repaid?
  • Will you have motor financing in place?
  • Will all other loans/overdrafts be repaid in full?

How will lifestyle expenses look compared to pre-retirement?

  • Will there be additional expenses (like domestic help / frail care)?
  • Are you planning on travelling or entertaining more?
  • By how much would your medical costs increase?
  • Where will you want to live and how much will it cost?

Will you need any lump sums at retirement?

  • Would you need to purchase a new car at retirement, etc?

Will you have financial dependents at retirement?

  • Will all your children be able to take care of themselves financially?
  • Is there perhaps a disabled family member you have to take care of?
  • Will your spouse be dependent on your retirement funding?

What obligations will fall away at retirement?

  • By how much would your tax obligations decrease?
  • Contributions to retirement funding will fall away.
  • Any debt that has been repaid.

There are a number of critical factors (term to retirement, current age, inflation, taxes, income drawdown at retirement, life expectancy, current provisions, escalation rates and lifestyle) that one needs to take into consideration when answering this question. For example, someone who begins their monthly retirement savings at 45-years-of-age, will need to contribute larger monthly amounts, than someone who started saving toward retirement at 26-years-of-age. Personalised calculations are required to better determine this answer.

Do a basic retirement calculation using our tool. 

Download our Retirement calculator.

Contributing to a pension fund at work is highly beneficial, but it might not be enough to provide you with a sustainable income during retirement. Contributions by yourself, the employer or both, are usually based on a certain percentage of your current remuneration and is not calculated based on your desired lifestyle once retired. You can calculate how much you need to save in addition to your monthly pension fund contribution by using our tool. 

Download our Retirement calculator.

Making use of a Retirement Annuity is not the only option, but given some of its benefits, it remains one of the preferred investment vehicles for this purpose. Contributions to your Retirement Annuity are tax deductible up until a certain percentage of your remuneration or taxable income (whichever is greater) and you are not taxed on interest, dividends or capital gains while being invested. Furthermore, when you retire from the fund, you can take a certain lumpsum amount without being taxed on the withdrawal.

Fairtree has a large product offering of long-only funds and alternative investments like private equity, hedge funds and commodities. We see balanced investing differently. We are the first in South Africa to combine alternative asset classes together with traditional asset classes inside of bespoke portfolios for our clients. This provides our clients with a unique diversified portfolio which includes best of breed long-only strategies and award-winning hedge fund strategies.

Please feel free to contact us and one of our consultants will assist you with setting up your investment.

Contact us

If you are already in retirement, please go to the “70+” section.

Optimising this Phase

There is usually a lot more stability in your career and personal life in this phase. You’ll feel that you’ve reached a certain level of maturity, knowing who you are and what you truly value in life. This is very powerful, as the “slowing down” phase is fast approaching. Utilise this phase to think about the legacy you want to leave behind, how you envision your “slowing down” years to look like and how to prepare yourself for it.

Phase Challenges

Paradigm Shift

During this phase, the majority of people become acutely aware of the fact that their current savings will not be able to support their retirement years and that they will have to work for longer. “Working longer” comes with its own challenges in this day and age, due to the exponential rate of change we experience: increased life expectancy, adopting continuous learning and development as opposed to “traditional education periods” and remaining engaged beyond the traditional retirement age of 55 has become more of a requirement.

Rethink, repurpose, reroute

Transitioning into retirement can be more emotionally challenging than most people realize. Retiring involves large changes to lifestyle and habits. As sudden shifts take place in daily routines, finances and relationships, some retirees struggle to stay mentally and physically active, to maintain their sense of worth, to find new purpose and a place of belonging in different circles of society. Preparing yourself for the “slowing down” phase requires more than financial planning, it calls for you to rethink, repurpose, reroute.

Frequently Asked Questions

The FAQs marked with a (*) includes engaging material to help you navigate this phase and make wise financial decisions that your future self will thank you for

The amount of money needed for retirement will be different from person-to-person. The answer, of course, will be based on anticipated life expectancy and different needs during your retirement years. This will all depend on your post-retirement lifestyle. While some people will want to travel and spoil their grandkids, others will want a different lifestyle. You can use a calculated cash flow estimate and a blend of strategies to forecast how much you need to invest today, in order to generate above-inflation growth to sustain you throughout your post-retirement years.

Download our Retirement calculator.

 

*For some thought-provoking trigger questions about retiring expenses, please see below.

 

Trigger questions for adjusting financial blueprint for retirement

Your level of debt at retirement:

  • Will the mortgage bond be repaid?
  • Will you have motor financing in place?
  • Will all other loans/overdrafts be repaid in full?

How will lifestyle expenses look compared to pre-retirement?

  • Will there be additional expenses (like domestic help / frail care)?
  • Are you planning on travelling or entertaining more?
  • By how much would your medical costs increase?
  • Where will you want to live and how much will it cost?

Will you need any lump sums at retirement?

  • Would you need to purchase a new car at retirement, etc?

Will you have financial dependents at retirement?

  • Will all your children be able to take care of themselves financially?
  • Is there perhaps a disabled family member you have to take care of? 
  • Will your spouse be dependent on your retirement funding?

What obligations will fall away at retirement?

  • By how much would your tax obligations decrease?
  • Contributions to retirement funding will fall away.
  • Any debt that has been repaid.

There are a number of critical factors (term to retirement, current age, inflation, taxes, income drawdown at retirement, life expectancy, current provisions, escalation rates and lifestyle) that one needs to take into consideration when answering this question. For example, someone who begins their monthly retirement savings at 45-years-of-age, will need to contribute larger monthly amounts, than someone who started saving toward retirement at 26-years-of-age. Personalised calculations are required to better determine this answer.

Do a basic retirement calculation using our tool.

Download our Retirement calculator.

Perhaps there is a way in which you could free up some money inside your monthly financial blueprint (budget). Adjusting your existing lifestyle, eating out less, closing some credit accounts, shopping at different stores and so forth. If you do not have a monthly financial blueprint, perhaps start with laying one out. You could be surprised to figure out where your monies is being spent each month.

Download our Retirement calculator.

Contributing to a pension fund at work is highly beneficial, but it might not be enough to provide you with a sustainable income during retirement. Contributions by you, the employer or both, are usually based on a certain percentage of your current remuneration and is not calculated based on your desired lifestyle once retired. You can calculate how much you need to save in addition to your monthly pension fund contribution by using our tool.

Download our Retirement calculator.

Making use of a Retirement Annuity is not the only option, but given some of its benefits, it remains one of the preferred investment vehicles for this purpose. Contributions to your Retirement Annuity are tax-deductible up until a certain percentage of your remuneration or taxable income (whichever is greater) and you’re not taxed on interest, dividends or capital gains while being invested. Furthermore, when you retire from the fund, you can take a certain lump sum amount without being taxed on the withdrawal.

Fairtree has a large product offering of long-only funds and alternative investments like private equity, hedge funds and commodities. We see balanced investing differently. We are the first in South Africa to combine alternative asset classes together with traditional asset classes inside of bespoke portfolios for our clients. This provides our clients with a unique diversified portfolio which includes best of breed long-only strategies and award-winning hedge fund strategies.

Please feel free to contact us and one of our consultants will assist you with setting up your investment.

Contact us

Optimising this Phase

At about 70 years old, the majority of people would have stopped working and most desire slowing down in life, being comfortable and content. To remain active and relevant, you can volunteer to help out where the need arises or serve a mentoring role within the community, sharing your skills and experience. Pursuing your hobbies and enjoying time with friends and family (especially the grandchildren) can all be done at your own pace and leisure.

Phase Challenges

Money Must Stretch

If you have “officially retired” it means that you will not be receiving an active, regular income (except if you receive money from another pastime) and you would be reliant on your retirement savings to provide a sustainable flow of income. It is crucial to ensure that your retirement savings are invested in the most constructive investment portfolios, to provide capital protection and optimal growth opportunities. Furthermore, have a good understanding of how long your money will last and plan accordingly.

Frequently Asked Questions

The FAQs marked with a (*) includes engaging material to help you navigate this phase and make wise financial decisions that your future self will thank you for

Ensuring that your retirement savings will last for your lifetime is, from a financial perspective, a key aspect to consider. You will need to consider a number of factors, such as: the amount of income you withdraw to fund your lifestyle, how long you live, the return on your retirement portfolio, any taxes payable and the risk of inflation. Inflation risk is often overlooked and by definition means that the "actual value" / "buying power" of your investment returns will be reduced by increasing inflation. This will especially pose a threat to your retirement savings if the return generated by your investment portfolio(s) does not out-perform the inflation rate, as you will gradually draw down on your capital until you eventually run out of money.

 

Make sure that your retirement plan and portfolio are well-constructed to protect your capital, whilst achieving much-needed growth.

Fairtree is the first in South Africa to blend traditional long-only unit trusts together with alternative asset classes like hedge funds and commodities. Our Personalised Income Portfolio (PIP) Strategy allows for monthly withdrawals and long-term capital growth simultaneously. This allows for safe short-term income withdrawals to take place without disrupting the overall portfolio’s growth for the long term. The portfolio is divided into three parts, one-part income and two-parts growth, each serving a different purpose to maximise capital growth, increase investment longevity and sustain income for as long as possible. This portfolio is designed to rebalance once the income part needs to be replenished.

Watch our video on Post Retirement Strategy here.

View our Living Annuities section 

This is a very difficult question to answer and will be based on your specific scenario and certain assumptions: what is your current age and your life expectancy, how much retirement capital do you have available, what is the rate of return on your investment portfolio, how much would you need to withdraw every month to fund your lifestyle, what is the rate of inflation and so forth. A cash flow calculation will give you a good idea of how long your retirement savings will be able to provide you with a sustainable income.

Fairtree is the first in South Africa to blend traditional long-only unit trusts together with alternative asset classes like hedge funds and commodities. Our Personalised Income Portfolio (PIP) Strategy allows for monthly withdrawals and long-term capital growth simultaneously. This allows for safe short-term income withdrawals to take place without disrupting the overall portfolio’s growth for the long term. The portfolio is divided into three parts, one-part income and two-parts growth, each serving a different purpose to maximise capital growth, increase investment longevity and sustain income for as long as possible. This portfolio is designed to rebalance once the income part needs to be replenished. A combination of our award-winning hedge funds has been included in the third growth portion of the portfolio. There is also a third growth portion option that holds long-only unit trusts rather than hedge funds, should that be your preference.

Watch our video on Post Retirement Strategy here.

View our Living Annuities section 

A Living Annuity is a post-retirement product and is available to you if you’re retiring from a Pension Fund, Provident Fund, Preservation Fund or a Retirement Annuity. It is essentially an investment in your name, which will pay you a regular income (which is taxable), whether monthly, quarterly, bi-annually or annually. You have the flexibility to set your income amount on an annual basis, however legislation permits withdrawals only within a certain band. This is to protect investors from depleting their retirement funds too quickly and being left without any financial means.

 

Living Annuities are very attractive as you can decide on the investment composition within the product without being restricted in terms of asset class exposure, jurisdictions and so forth, giving you the freedom to invest as conservatively or aggressively as you’d like. In the event of your death, the capital can be left to your nominated beneficiaries without attracting any estate duty.

Please feel free to contact us and one of our consultants will assist you with setting up your investment.

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Setting Your Investment Goal

There are various goals that an investor may be desiring to achieve. The important thing to note about goal setting is the element of time . Goals can range from short, medium and/or long term. Whether your reason for investment be for capital growth, for capital preservation, to save toward retirement, for income withdrawals, saving to buy a house, saving to go on a holiday or even investing towards your children’s education, no matter the reason, choosing the correct investment vehicle and fund is key. Fairtree Invest, specializes in multi-managed solutions that are strategically designed to meet their client’s bespoke investment goals. Would you like to start your journey?

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We will guide you along the investment process.
Because with us, it is all about the journey.

This is an Individual Investor Online Application Process.

**Please Note:
Our Minimums are R50,000 for initial lump sum investments.


STEP 1:
Please provide us with your Name, Surname, Cell Phone Number and Email Address. . A Fairtree consultant will contact you to discuss your interest in this fund. After this, we will send an email to you containing a link to our secured Online Application process. We make use of OTP (One-Time-Pin) technology for your verification security (This is why we require a valid cell phone number).

If this step is unclear kindly email us on clientservices@fairtreeinvest.com and we will assist you.