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"Courage taught me no matter how bad a crisis gets
... any sound investment will eventually pay off." 
- Carlos Slim Helu -

Optimum's investment specialists can provide guidance and advice on how to create a diversified investment portfolio that aligns with your goals, risk tolerance, and timeline.

Investment Planning

Investment planning is the process of creating a roadmap to achieve financial goals by investing money in different types of financial instruments.

An investment is an asset that can generate income for the future to create wealth and financial freedom.

Investments do not have a one-size-fits-all solution. People come from diverse financial backgrounds and therefore think and act differently when deciding how to invest their money. It is crucial to determine the potential investor’s risk tolerance before deciding on an investment plan.

Retirement Planning

Retirement planning is an essential part of financial planning that involves preparing for the income needs and expenses that come with retirement. In South Africa, retirement planning is particularly important given the high levels of income inequality, the fact that many employers do not offer pension benefits, and the fact that many individuals rely on government-funded social security in retirement.

Starting retirement planning at a young age can have a significant impact on an individual's financial security in retirement. For example, if a 25-year-old individual starts investing R1,000 per month in a retirement annuity with an expected annual return of 10%, they could have over R2.5 million saved by age 65. However, if they wait until age 35 to start investing the same amount, they would only have around R1.1 million saved by age 65, assuming the same rate of return.

Tax-Free Savings Account (TFSA)

In South Africa, a TFSA is a government-regulated investment account that allows individuals to save up to R36,000 per year, with a maximum lifetime contribution limit of R500,000.

The role of a TFSA within an individual's investment portfolio is to provide tax-free investment returns, which can help to maximise investment returns and minimise taxes paid. Unlike other investment accounts, TFSA contributions are made with after-tax income, meaning that individuals do not receive a tax deduction for contributions made. However, investment returns earned within the account are tax-free, meaning that individuals do not pay taxes on interest, dividends, or capital gains earned.

The flexibility of TFSA investments makes it a useful tool for individuals to save for short-term goals, such as a down payment on a house or a vacation, as well as long-term goals, such as retirement. TFSA contributions can be withdrawn at any time, without penalty or tax implications, which makes it a useful tool for individuals to access their savings in case of an emergency.


An endowment is a type of investment product that combines insurance and investment. It is designed to help individuals save money over a specified period of time while providing life cover.

Endowments offer a tax-efficient investment option, as the investment returns earned within the endowment are tax-free. Additionally, endowments offer life insurance cover, which can provide financial security for the investor's beneficiaries in the event of the investor's death.

Endowments are a useful tool for individuals who have a long-term investment horizon and want to save for specific financial goals, such as education, retirement, or a down payment on a house. The fixed-term nature of endowments makes them useful for individuals who want to save for a specific goal and avoid the temptation of withdrawing their savings before the investment term is over.

Flexible Investment

A flexible investment allows investors to contribute or withdraw funds at any time, without incurring penalties or fees. It is a type of investment vehicle that offers investors a high degree of flexibility, as they can adjust their contributions and withdrawals according to their changing financial needs and circumstances.

Flexible investments can take many different forms, including unit trusts, exchange-traded funds (ETFs), and tax-free savings accounts. These investment vehicles offer different levels of flexibility and risk, so it is important to do research and speak to a financial advisor to determine which option is best for your individual needs and goals.

Retirement Annuity

A retirement annuity is a long-term investment vehicle designed to help individuals save for retirement. It allows individuals to make contributions towards their retirement. The contributions made towards a retirement annuity are tax-deductible, up to certain limits, which can provide significant tax benefits to individuals who are looking to save for retirement.

The money invested in a retirement annuity grows over time, as the investments generate returns. When an individual reaches retirement age, they can use the money in their retirement annuity to purchase an annuity or take a lump sum payment. The lump sum payment is subject to certain tax rules, which vary depending on the individual's age and the amount of money in the retirement annuity.

A retirement annuity can be a valuable addition to an individual's investment portfolio, providing a dedicated vehicle for retirement savings and tax benefits. It is important to speak to a financial adviser to determine whether a retirement annuity is the best option for your individual needs and goals.

Living Annuity

A living annuity provides a regular income stream to an individual during retirement. Unlike a traditional annuity, which provides a fixed income stream for life, a living annuity allows individuals to choose their own investment strategy and adjust their income payments each year, based on their changing financial needs and market conditions.

One should carefully consider the risks and fees associated with a living annuity before making a decision to invest, and to speak to a financial advisor to determine whether a living annuity is the best option for your individual needs and goals.

Preservation Fund

A long-term investment vehicle that allows individuals to preserve their retirement savings when they leave an employer. When an individual leaves their job, they can transfer their retirement savings from their employer's pension or provident fund into a preservation fund. The preservation fund is designed to help individuals preserve their retirement savings and continue to grow their investments until they retire.

A preservation fund is also important for individuals who may have multiple employers during their working career, as it allows them to consolidate their retirement savings into one investment vehicle. This can help to simplify their retirement planning and ensure that their retirement savings are managed in a coherent and coordinated way. 

Investment Planning
Retirement Planning
Tax-Free Savings Plans
Flexible Investment
Retirement Annuity
Living Annuties
Preservation Fund
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