Investing your money in an annuity can ensure you have enough to cover your living expenses – and enjoy your retirement – says Chris Andrews, Vice President and Chief Investment Officer at La Trobe Financial.
He joined Annie and Jill on their radio show this week. He explained that La Trobe Financial offers a 12 Month Term Account that invests your funds in cash or loans secured by first mortgages in Australia. This provides you with a monthly return – similar to a pay cheque.
Established in 2002, the Account now has over $750 million in funds and thousands of investors across Australia.
Currently it’s delivering a return of 5.2 per cent per annum. Say you’ve sold your home, downsized to an apartment or moved into a retirement village and you have $400,000 left over that you want to invest – that’s a yearly return of $20,800 or $1,733 a month in your pocket (but remember the tax!)
There’s also no entry or exit fees if the investment is held for the full term.
Is my money safe?
Chris says they lend your money out with a property mortgage for security and have built a strong margin of safety in for their investors, starting with a detailed credit assessment for every loan.
La Trobe lends a maximum of 75 per cent of the independent valuation of the land and building.
“It has never lost a cent of capital [since 2002]for any of its investors and it’s never missed a monthly interest payment,” Chris adds.
In fact, Money Magazine has judged the Account to be the Best Mortgage Fund in Australia for the last eight years running.
Preparing to live longer
Retirement can now be 20 to 30 years or even longer – so it pays to plan ahead and think about monthly income and expenses.
You can listen to the podcast of the full interview with Chris here.