Mosaic Invest’s Endowment is an investment product suitable for individuals with a long investment horizon and a high marginal tax rate.
An endowment is a tax efficient investment product for investors with a marginal tax rate greater than 30%.
Legislation limits access to your investment during the restriction period.
The first five years of the policy, or five years from the first day of any month during which the 120% rule takes effect. The 120% rule takes effect when your contributions in any policy year are greater than 120% of the higher of any of the previous two policy year’s total contributions.
After the restriction period, you may elect to receive the proceeds of the endowment either as a lump-sum or as regular withdrawals. You may also elect to continue to be invested.
You are allowed a single withdrawal during the restriction period. The maximum amount available for withdrawal is the endowment contributions plus 5% per annum.
Income and capital gains tax payable will be deducted from the amount withdrawn and you will receive an after-tax amount.
A tax rate of 30% apply to natural persons which is lower than the highest marginal tax rate and provides a potential tax advantage.
You can either contribute a single lump sum or a recurring monthly amount through a regular debit order.
You can invest from as little as R1 000 per month via debit order or a minimum of a R10 000 once-off lump sum.
Yes, you may cede your endowment.
Not necessarily. If you are married in community of property or out of community subject to accrual, a divorce order may cede a portion of your endowment to your spouse.
The endowment proceeds will be paid directly to your nominated beneficiary.
Yes. However, a significant advantage of an endowment is that it creates liquidity in your estate by bypassing the executor and paying directly to your beneficiaries.
The underlying investment is the Mosaic Invest Balanced Portfolio.
No. The endowment does not offer any capital guarantees and is subject to market movements.
An administration and an investment management fee apply. See the endowment application form and portfolio disclosure document for full fee disclosures.
You will receive regular investment statements per e-mail. You can also access the disclosure document of the underlying portfolio on our website at any time.
The endowment is regulated by the Financial Services Board in terms of the Long-Term Insurance Act. Standard Bank serves as custodian, KPMG as auditor and Prescient Life as the administrator of the endowment.
You simply complete our application form and provide the necessary FICA documents. As easy as that.