Finding the right balance: Compulsory vs discretionary investments
Deciding whether to use a compulsory investment, such as a retirement fund, or a discretionary investment depends on several factors, including your investment goals, tax efficiency, liquidity requirements, and long-term financial strategy.
While compulsory investments offer excellent tax benefits, they come with limitations on accessibility and investment flexibility, such as restricted access before retirement and investment limits governed by Regulation 28, which may constrain the investor’s ability to pursue higher-risk or more globally diversified strategies.
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These limitations should be considered in the context of the investor’s overall…
