More retirement agility
STEPHEN CRANSTON: Liberty goes macho
Investors are not restricted to in-house Liberty and Stanlib products, which have had lacklustre performance
Liberty product tsar David Lloyd might look as if he has just stepped out of an episode of Starsky & Hutch, but he has done a lot to rejuvenate the company’s product menu. He favours macho names such as "Bold" and "Agile" and, to be fair, he has helped Liberty recover some ground. The Agile retirement annuity was recently updated, and it set the bar a little higher than before. As well as the guaranteed retirement income, it has a high-water-mark guarantee. I wish other Liberty products, such as its Evolve endowment, offered this too. Investors know that if they opt for the high-water-mark benefit, at a one-off charge of 1% for five years, their annuity will never fall below 80% of its maximum value. The guaranteed retirement income remains a useful feature of Agile. For every R100,000 you invest you might get, say, R2,000/month of income. The downside is that its Exact Income Fund is suitable only for members planning to buy a fixed annuity — which has no inflation protection. I un...
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