Stratus Guaranteed Investment

As people get older, they tend to take fewer risks with their capital. Quite rightly so too - after all, your golden years should hold no surprises for you. Least of all an underperformance in what you may have considered to be sufficient provision for your retirement.

Which is why you need guaranteed investments such as Stratus Guaranteed Investment which is designed to dramatically reduce risk and to produce a guaranteed lump sum payment and/or guaranteed monthly income, regardless of market fluctuations that may wipe out non-guaranteed investments.     

Stratus Guaranteed Return and Stratus Guaranteed Income are aimed at conservative, risk-averse investors who, irrespective of changes in market conditions, need:

• a guaranteed lump-sum payout, for instance to cover a large future purchase, or
• a guaranteed monthly income you can budget with, or

• both.

Investors have the option of an initial investment term of five or seven years.

Because at this stage of your life you'd likely be thinking of your heirs, you may include these guaranteed investments in your estate planning. You may even arrange for payments after your death, so that your beneficiaries will receive the same guaranteed payout or monthly income.

Ensuring a guaranteed return
Ensuring a guaranteed income

Ensuring a guaranteed income AND return

Ensuring a guaranteed return – with Stratus Guaranteed Return

Stratus Guaranteed Return guarantees to pay out the guaranteed growth on the policy, irrespective of any changes in market conditions or any drop in long-term interest rates. Thus Sanlam, and not you, accepts full responsibility for what may happen in the future. You know exactly what return you will receive - in advance.

Tax-efficiency

With Stratus Guaranteed Return, you know you won't have to pay tax in your hands on the final proceeds from your investment. The current rate of capital gains tax has already been taken into account in determining the net return. Do take this into consideration if you're comparing a Stratus Guaranteed Investment with other taxable investments.
 

According to current tax practices, you may make cash withdrawals without paying any additional tax in your hands if you extend the term of the investment beyond the initial period.

Extend your guarantee to your heirs

Your investment can be continued if you die during the initial term. You may assure your family and heirs of a guaranteed amount after your death by including your Stratus Guaranteed Return in your estate plan so that it provides your heirs with exactly the same benefits as yourself after your death. Alternatively you can appoint a nominee for policy ownership, who will receive the benefits after your death.

Low minimum investment

Stratus offers guaranteed financial security to all, with the minimum investment amount as low as R10 000 and no upper limit on the amount you may invest.

At the end of the initial term, you may choose to continue your Stratus Guaranteed Investment and allow the capital to grow further, or switch to one of Sanlam's other investment funds. Or you can choose to make regular cash withdrawals. Your Sanlam Adviser or your broker will advise you as to the most appropriate course.

Please Note: The guaranteed lump-sum pay out may be reduced if a government or authority increases the amount of tax or levies payable for the assets that we keep for the Guaranteed Return policy, or requires that these assets must be invested in another way.

Ensuring a guaranteed monthly income - with Stratus Guaranteed Income

With Stratus Guaranteed Income, slumping markets or a decline in the interest rates will no longer affect your regular income. You may even give yourself a 'pay-increase' every year - a growing income that will take care of the effects of inflation. With Stratus Guaranteed Income, you may choose an income growth rate of anywhere between 5% and 15%.

Cashing in your investment

Should you want to terminate your investment, you may do so at any time - in which case you will receive the value of the remaining income instalments, discounted to allow for the shorter time your money will have been invested. 

Continuation after your death

Your investment can be continued if you die during the initial term. You may assure your family and heirs of a guaranteed amount after your death by including your Stratus Guaranteed Income in your estate plan so that it provides your heirs with exactly the same benefits. Alternatively you can appoint a nominee for policyownership, who will receive the benefits after your death.

Partially taxable

Provided certain requirements are met only the non-capital portion of your monthly or annual income is taxable in your hands.

Low minimum investment

Stratus offers guaranteed financial security to all, with the minimum investment amount as low as R10 000 and no upper limit on the amount you may invest.

Ensuring a guaranteed monthly income AND guaranteed return

Stratus offers you the option of retaining the full amount of your initial capital investment at the end of the term as well as enjoying a regular guaranteed income - by combining Stratus Guaranteed Return with Guaranteed Income. In this way you will:

• have the certainty that your capital is guaranteed at the end of five years, and

• enjoy a guaranteed income during the full term of your investment, unaffected by declining interest rates.

A portion of your initial investment is invested in a Stratus Guaranteed Return to guarantee your capital at the end of the initial term, without attracting tax in your hands. The current rate of capital gains tax has already been taken into account in determining the net return. The rest of the capital is invested in a Stratus Guaranteed Income to provide you with a regular income, and will only be partially taxable, provided certain requirements are met.

Continuation after your death

Your investment can be continued if you die during the initial term. You may assure your family and heirs of a guaranteed amount after your death by including your Stratus Guaranteed Investment in your estate plan so that it provides your heirs with exactly the same benefits. Alternatively you can appoint a nominee for policy ownership, who will receive the benefits after your death.

Low minimum investment

Stratus offers guaranteed financial security to all, with the minimum investment amount as low as R10 000 and no upper limit on the amount you may invest.

At the end of the initial term, you may choose to continue your Stratus Guaranteed Investment, return part of the investment and allow the capital to grow further, or switch to one of Sanlam's other investment funds. Or you can choose to make regular cash withdrawals. Your Sanlam Adviser or your broker will advise you as to the best course.

Please Note: The guaranteed lump-sum pay out may be reduced if a government or authority increases the amount of tax or levies payable for the assets that we keep for the Guaranteed Return policy, or requires that these assets be invested in another way.

Contact details

Sales / Product related information: 0860 223 390
Fax: (021) 947-9864
Information on existing policies: 0860SANLAM / 0860 726 526
Fax: (021) 947-9440
International tel: +27 21 916-5000
International fax: +27 21 947-9864

Email:  stratus@sanlam.co.za