Building generational wealth with a retirement annuity

Momentum Savings

3 MIN READ

So, you’re not a Rockefeller and don’t have rolling lawns or a family business with a head office looking like a Greek temple?

Ordinary people have something to leave to the next generation, too. So many people want to study further and make something of themselves. Or start their own business. What a great gift it is to give someone like that a head start in life. A retirement annuity (RA) can do just that! Here’s how.

A retirement annuity is a gift that keeps on giving

Even when you stop contributing every month, the money will keep growing.

Example:

Dad Charles contributes R500 a month in a retirement annuity with Momentum Savings when his daughter Thembi is born:

He invests in the Focus 7 Fund of Funds and the money grows with inflation (6%) every year.

If she takes over when she is 23, her monthly payments will be R1 802 instead of R4 070 to reach the same goal of R55 million at age 65 (for a value of R1 245 00 in today’s terms).

How to grow your money with an Momentum Savings

Not all of us are American business magnates but that doesn’t mean we cannot pass on what we have in a meaningful way. To find the best Momentum Savings solutions for a gift, speak to your financial adviser.