INVEST | MANAGING YOUR CASH IN RETIREMENT
Once you have reached retirement age, it is time to relax and enjoy the rewards of your labours. The mortgage is paid off, your children are independent, and you have saved a tidy sum of money which will supplement your National Superannuation and allow you to enjoy a comfortable life.
In many countries, retirees purchase annuities to help fund their living
expenses once employment related income ceases. The purchaser pays a certain
capital sum to guarantee a certain income for the remainder of his or her
Annuities have not been popular in New Zealand because they are tax inefficient. Income derived from an annuity is taxed at the rate of 33 cents per dollar where a retiree's income may often only be taxed at 17.5 or 10.5 cents per dollar.
Because annuities in New Zealand are tax inefficient, First Mortgage Trust has identified the need for a financial product which still provides regular cashflow, but with the benefits of the lower tax rate regime. This may be provided by a Group Investment Fund or PIE (Portfolio Investment Entity) Fund.
You can invest your funds in First Mortgage Trust Group Investment Fund
or First Mortgage PIE Trust according to your own particular tax circumstances.
We suggest you consult your professional advisor to ascertain which fund
is best for you.
Our current Product Disclosure Statements, covering both of these funds, provide the information required to comply with the provisions of the Financial Markets Conduct Act 2013, along with an investment Application Form.
Use our CALCULATOR to assess how long you might be able to draw a fixed monthly amount from your investment before your savings have been consumed.