A MICRO PENSION PLAN MADE JUST FOR YOUA MICRO PENSION PLAN MADE JUST FOR YOU
April 16, 2019
The life of an entrepreneur is quite an adventurous one. On one hand, you get to solely take major business transforming decisions, exercising absolute authority and control over your business affairs, while on the other, complete responsibility for the consequences of those decisions rests entirely on your shoulders. Profits are all yours to deal with as you please, with the only restriction being your better sense of judgment. You could decide to visit that beautiful Safari or purchase for yourself, a satisfactory fraction of Apple stocks.
This ability to be the key decision maker in your business affairs brings with it a sense of accomplishment, satisfaction and pride. More rewarding, is when those decisions yield very profitable results. It is fulfilling to reap the fruits of one’s labour in the present moment, but more joy is when those profits are overtime, transformed into a thriving and sustainable venture that lets you watch the sunset at the end of the day without a care on your shoulders.
It is a very demanding process, especially at the beginning, to ensure that the business plan is executed properly and that business objectives are achieved, to produce the desired profitable results. A lot of resources need to be invested, ranging from financial to emotional. Due to the constant need to keep abreast of the business and resolve any challenges that may arise, it becomes easy to get caught up in the process and put off arrangements for a time when you are ready to hang your boots. Chances are, that time creeps up on you like the night and with it, the realization that you may have to make some uncomfortable adjustments in order to thrive. This does not have to be so.
There is an arrangement for the provision of retirement benefits, tailored to suit the entrepreneurs’ lifestyle. It is the Micro Pensions plan. One that makes provision for you to thrive in this moment and continue, even after you are out of active service. This plan is a retirement savings scheme that covers people operating in the informal sector and entails opening a Retirement Savings Account (RSA). It is applicable to you, where: as an entrepreneur, there are less than 3 employees in your employ or you are an employee that works in the informal sector with or without a formal employment contract.
It is a voluntary plan, solely funded by you, in any amount that your financial capacity permits, whether daily, weekly or monthly, depending on your preferred frequency. In comparison with your regular commercial bank savings account, this account offers you very competitive returns on investments.
Contributions into this account are split into two portions, 40% for Contingent Withdrawals and 60% for Retirement Benefits. The contingent portion takes into consideration, the fact that entrepreneurs may need to use cash urgently, thus allowing for weekly withdrawals, usually after 3 (three) months from the initial contribution. The retirement portion is the remaining 60% which can only be accessed upon your retirement, usually when you are at least 50 years. Funds in this account cannot be used as collateral for a loan, neither can the account be over drafted. Should you decide to pursue formal employment at any point, your Retirement Savings Account (RSA) will be converted accordingly.
As the saying goes… “The greater the risk, the greater the reward”. The risks associated with being an entrepreneur should not yield rewards only in this moment. Ensure that those risks pay off well in the long term. Give yourself the life you deserve, today and tomorrow, and get the most of out of life.
Contact us today for more information on the Micro pensions plan and how it will help you get more out of life.