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Old Mutual max investments flexible plan review 2022

Published by
Lethabo Ntsoane

The Old Mutual Max Investments Flexible Plan differs from the Old Mutual unit trusts retirement annuity fund in that it incorporates unit trusts administered by other service providers. This option provides subscribers of the plan with extra investing alternatives.

Investors will get tax benefits that can be redeemed both before and after retirement. For income tax reasons, investors can deduct their contributions to the flexible plan, lowering their taxable income. Furthermore, the plan’s earnings are not taxed, which means the investor will have more money in retirement.

The investor manages the plan since he or she decides where the money is invested.

The investor has the option of investing in funds managed by Old Mutual or funds managed by other financial organizations. The investor’s investing options are thus broadened.

The product, on the other hand, adheres to the standards outlined in Regulation 28 of the Pension Funds Act. The regulation imposes various limitations and is expected to have an impact on how the funds are invested. As a result, funds that invest in domestic assets will be given priority over those that invest in overseas assets.

The Old Mutual max investment flexible plan is easily distinguishable based on the benefits it provides to investors. The product is appropriate for customers who have a significant amount of money invested in unit trusts from other financial institutions. Below, we go over the Old Mutual max investments flexible plan in depth.

Old Mutual max investments flexible plan summary

The Old Mutual max investments flexible plan is a retirement annuity with an R500.00 monthly minimum contribution requirement. Ad hoc and one-off contributions to the flexible plan are also possible. Without incurring any switching fees, an investor can combine the contribution methods at any time.

The Old Mutual max investment flexible plan invests in Old Mutual-managed funds while also allowing customers to participate in funds that are not managed by Old Mutual. Allan Gray, Investec, Coronation, PSG Wealth, and other funds are available to investors. 

Regulation 28 of the pension fund legislation must be followed while investing in the funds. According to the legislation, an investment that is subject to this regulation cannot have more than 45% of its portfolio invested overseas. This rule will have an influence on the funds you select.

As a policyholder, you will have complete control over the portfolio while investing in the funds. The Old Mutual digital platforms are available to policyholders at no additional cost. Investors may view their investment portfolio at any time via Old Mutual’s digital platforms.

Money can be transferred from one fund to another. This activity is free and can be performed at any time during the investment cycle. If money isn’t invested properly, it can be lost, and Old Mutual isn’t liable for any losses.

At retirement, money deposited in the Old Mutual max investments flexible plan can be redeemed. The retirement age is 55 years old, and the investor has the option of withdrawing the funds at any time thereafter.

How the Old Mutual max investments flexible plan works

Only a callback request or a visit to an Old Mutual branch may be used to acquire the Old Mutual max investments flexible plan. Because the product isn’t accessible online

, it can’t be purchased there. An application must be completed and signed, and the beneficiaries of the product must be included.

Beneficiaries are the people who will get the money from the retirement annuity if the main policyholder dies. Anyone whom the investor selects to benefit from the plan is considered a beneficiary. Alternatively, a trust might be named as the plan’s beneficiary.

When submitting an application, the investor must select the funds into which he or she wants to invest. Old Mutual-managed and-administered funds are available, although non-Old Mutual-managed and-administered funds are also accessible. Other firms’ funds, such as Sanlam, Allan Gray, and others, are also accessible.

The application may be emailed to Old Mutual’s appropriate email address after selecting the funds to invest in and completing the application forms. The plan becomes active once the application is accepted, and the applicant becomes a member of the product.

The investor will have to contribute to the plan on an as-needed, monthly, or yearly basis. Contributions must be made until the age of retirement. Failure to contribute will have no effect on the plan, which will continue to operate until the participant reaches retirement age.

The policyholder can withdraw from the plan when he or she reaches the age of 55. The policyholder, on the other hand, might choose to retire later to take advantage of the markets and compounding impact. The plan’s proceeds will flow directly to the beneficiaries if the investor dies.

Advantages of the Old Mutual max investments flexible plan

  • To a limited extent, contributions to the flexible plan are tax-deductible.
  • Access to the Old Mutual digital platforms is included with the purchase.
  • There are various onshore and offshore funds to select from.
  • The investor has complete control over his or her investment, including the ability to shift cash from one fund to another.
  • The minimum investment commitment of R500.00 is affordable.
  • Investors can also put their money into unit trusts run by other firms. The Allan Gray Balanced Fund, for example.

Disadvantages of the Old Mutual max investments flexible plan

  • Since the investment has no capital guarantees, money invested may be lost or may not earn the intended interest.
  • The product cannot be purchased entirely online, and you will need to contact a consultant to acquire it.
  • The program does not include a cashback benefit, which might significantly increase the value of the living annuity.

Conclusion

The Old Mutual max investments flexible plan allows investors to mix and match their assets in a way that no other Old Mutual retirement annuity can. The product allows clients to invest in unit trusts that are not administered by Old Mutual. Those that are familiar with mutual funds can gain beyond what Old Mutual unit trusts offer. 

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at lethabo@rateweb.co.za

Published by
Lethabo Ntsoane
Tags: Old Mutual
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