In-comes the money

AD, a new client of ours, is 68 years old. He retired in Uganda 3 years ago after a lifetime of teaching at a University and he got a lump sum retirement benefit. What then?!

A recent survey by NSSF (the Ugandan National Social Security Fund) showed that the majority of retirees spent most of their fund within 5 years – building a house, investing in a business, or making a bad investment choice. It is brilliant that people are saving for retirement……but desperate that they are given large sums of money and no help for how to invest it wisely. Changes nonsensically termed “pension freedom” in UK give similarly dangerous control over large sums of money to people whose expertise is not in the financial markets. A recipe for disaster. A recipe for an unhappy retirement.

The most important thing in retirement is not capital growth, it´s all about income. We have worked with a number of our partners to design a product that offers a much higher level of income than other options: a much greater security than most investments; a guaranteed return over a seven year period; and the freedom to leave the scheme once a year if your circumstances change.  It´s a £ investment so it also gives our Ugandan clients protection against currency depreciation.

10% per annum interest is payable quarterly and, from year two onwards, there is also an annual bonus that boosts income significantly – up to double as follows……

Year One –           2.5% per quarter              No annual bonus           Total: 10%

Year Two –           2.5% per quarter              3%  annual bonus          Total: 13%

Year Three –        2.5% per quarter              4% annual bonus          Total: 14%

Year Four –           2.5% per quarter              5% annual bonus          Total: 15%

Year Five –            2.5% per quarter              6% annual bonus          Total: 16%

Year Six –               2.5% per quarter              8%0 annual bonus       Total: 18%

Year Seven –        2.5% per quarter              10% annual bonus       Total: 20%

So with our plan a client will receive 106% of their investment in income over a 7 year period. And still have all their capital. With a bank in the UK they would be lucky to get 17.5%. And with a Ugandan bank whilst they might get 70% there would be tax to pay and currency depreciation to factor into this.

Helping people to make good investments that improve their lives is a good way to make a living. Helping them to enjoy a well-earned, risk-free retirement is particularly joyful.

If you would like a retirement plan written, free of charge, then get in touch – jon@investmentowl.com