Main goal? Preserve capital for a sustainable income

Investing an inheritance of R4 million as a 75-year-old retiree is a significant decision to ensure financial security, tax efficiency, and alignment with personal goals.

- Jaco Fouché

In answer to the above question: This is a unique opportunity that should be used wisely to provide long-term benefits. Consider these important aspects for the investment.

Investment goals

For someone who is 75 years old, the main goal is often to preserve capital while generating a sustainable income. This is important if the retiree relies on the government's old-age pension, which might not cover all living expenses. It is a good idea to keep some funds easily accessible for emergencies. If leaving an inheritance is a priority, the investment plan should ensure the money is managed carefully.

Tax considerations

Tax efficiency plays an important role in maximising the returns on this inheritance. Retirees over the age of 65 qualify for an annual interest exemption of R34 500. This can be used by investing in interest-yielding instruments.