FNB launches 3 guaranteed investment solutions for uncertain times

In response to this growing need for investments that allow people to manage uncertainty and market volatility, FNB has introduced three new guaranteed investment solutions designed to provide stability and assurance, while delivering pre-defined levels of growth and income.

Samukelo Zwane, Head of Product at FNB Wealth and Investments says, “when investors are looking for certainty, guaranteed products provide them with the reassurance that their financial goals remain achievable, regardless of market fluctuations.”

The FNB Guaranteed Growth Plan is structured to deliver guaranteed capital growth over a set investment period of five years. In addition to providing a guaranteed growth, the product is wrapped in an endowment which allows investors who are taxed at a high marginal rate to be taxed at lower rates. The endowment wrapper also has the benefit of allowing investors to nominate beneficiaries, ensuring a quick and seamless transfer, rather than the investment being locked up for a lengthy period in the deceased estate. By nominating beneficiaries, investors also save on executor costs.

For investors that require a stable source of income, the new FNB Guaranteed Income Plan provides a pre-determined income over five years. Importantly, the product offers a range of flexible ways to structure the investment. Individuals can choose to receive a level income or income which increase at 5% annually and they can choose to fully or partially guarantee their capital at the end of the investment term.

Opting for a full or partial capital guarantee at the end of the investments means that income payments are slightly lower, but you receive some of your capital back at the end of the investment term. The guaranteed income plan allows investors to design wealth strategies that provide a combination of both income and growth strategies balancing immediate financial needs with long-term security.

Economic uncertainty and market volatility have made financial security and predictable outcomes a priority for many investors. Guaranteed investment products are one of the most effective ways of achieving this certainty.

“Different investors have different income needs, and this solution provides the flexibility to match their financial goals while maintaining security,” Zwane explains.

The FNB Lifetime Income Plan is an ideal solution for retirees seeking guaranteed lifetime income without the need for active investment management and the risk of running out of income while you are still in retirement. It ensures a pre-determined income stream that remains unaffected by market conditions, interest rate changes or longevity. While the capital is not accessible when the investor passes away, the annuity can be structured to continue providing a portion of the income to a surviving spouse for a specified period, ensuring ongoing financial support.

Zwane says, “planning for retirement is one of the most critical aspects of financial security. With our Lifetime Income Plan, retirees can be rest assured that they will receive a reliable income for life, without having to worry about how the markets are performing. The solution ensures that investors who have not saved sufficiently for retirement do not run the risk of depleting their funds while in retirement.”

“These guaranteed offerings from FNB reaffirm its commitment to providing innovative financial solutions to enable investors to do financial planning based on their circumstances so that they can take control of their financial future,” concludes Zwane.