In this blog post, we will explore how Liberty Investment works, the benefits of their plans, and how you can get started on your investment journey today.
How Does Liberty Investment Work?
Liberty Investment allows you to choose from various financial products designed to help you build wealth or generate income. You can invest for a specific term—typically 5, 10, or 15 years—and designate up to two beneficiaries who will receive a portion of your investment if you pass away before the term ends. This feature ensures that your loved ones are taken care of even in unforeseen circumstances.
The Liberty Investment Plan
The Liberty Investment Plan is tailored to meet your unique financial needs. Here’s how it works:
- Investment Duration: You decide the investment period—5, 10, or 15 years.
- Beneficiary Designation: You can name up to two beneficiaries to receive a portion of the investment.
- Claiming Your Investment: To claim your investment, submit the completed claims documents to lcb.customerservices@liberty.co.za with your withdrawal or retirement claim details, including your full name, surname, and membership number.
Why Consider an Investment Plan?
An Investment Plan from Liberty allows you to invest in a diverse range of asset classes, helping you grow your wealth over time. Here are some benefits to consider:
- Flexibility of Choice: Liberty’s Multi-Manager approach means your money is managed by multiple investment managers, offering diversified portfolio options without additional costs.
- Tax Efficiency: After holding your investment for five years, you won’t have to pay additional tax if you remain the original owner.
- Pay-on-Delivery Investing: Liberty takes on the investment risk, allowing you to share in the rewards. If your investment doesn’t grow by the Target Return in the first three years, you won’t pay for the setup costs.
The Evolve Investment Plan
The Evolve Investment Plan is Liberty’s innovative pay-on-delivery endowment policy designed for investors in higher tax brackets. Here are the key features:
- Minimum Investment: Start with a minimum investment of R150,000.
- Investment Distribution: A portion of your investment goes into a Capped Tracker portfolio, giving you exposure to the ALSI 40, including dividends. You choose whether to allocate 60% or 40% of your investment to this portfolio.
- Growth Sharing: You share the investment growth exceeding the Target Return with Liberty in the first three years. After that, your investment in the Capped Tracker switches to the Top 40 Tracker, ensuring you continue to benefit from market growth.