They offer stable investment returns since the funds are invested conservatively with the aim of preserving capital and achieving modest growth over the long-term. The maximum drawdown limit of 15 per cent is required to ensure the funds are not exhausted during the lifetime of the member thereby providing some protection from the risks associated with longevity.Īlthough income drawdown funds do not expressly guarantee protection from the risks of longevity, they are arguably one of the most attractive options at retirement due to the following advantages: This payout may be sustained for a period of between 40-50 years assuming the prevailing economic conditions and a stable interest rate environment is maintained. Therefore, if a member has invested a lump sum of Sh5 million they would be able to draw down up to Sh750,000 per annum or 62,500 per month. The maximum payout is 15 per cent of the purchase price per year whereas the minimum drawdown period is 10 years. This ensures the rights of the retiree are protected given the long-term nature of the investment. The RBA provides a clear legal framework for all registered income drawdown funds. This allows a retiree to benefit from income arising from investment of the lump sum and translates to higher regular payouts to the member. The income drawdown fund is an investment product that allows a retiree to reinvest their accumulated retirement savings through a fund registered by Retirement Benefits Authority (RBA) and set up for the purpose of paying regular pensions to retirees. Kenya’s retirement benefits regulations allow for pension scheme members to access up to a third of their savings as a lump sum at retirement and the balance used to purchase of a regular pension through an annuity or an income drawdown fund.
One such solution for retirees today is the option of drawing their monthly pension from an Income Drawdown Fund as opposed to traditional annuities offered by insurance companies.Įven with limited information given to retirees about Income drawdown funds, the solution is quickly becoming popular for the retiree looking to get the most value out of his accumulated lump sum.Įnwealth Financial Services, one of the pioneers offering the solution is today managing an income drawdown account of more than Sh1.5 billion within a period of three years since its introduction. Imposing yesterday’s normalcy on a changed today will definitely lead to missed opportunities birthed by modern innovative investment solutions. It's great as it eliminates the need for any timezone conversions.The world is evolving swiftly and surely. This is the server time and is the same for everyone. The easiest way to tell when it resets, though, is by watching the clock at the bottom of your MetaTrader. *** Daily drawdown resets at 23:59 server time, which is 16:59 EST. This number will not change with payouts, profit, or losses. For example, if you scaled to $1,000,000, the only drawdown-related metric to worry about is not going below $1,000,000. Your daily drawdown can be removed and the relative drawdown becomes fixed at the balance you scaled to. After you scale, our drawdown system works differently. ** This calculator is only for accounts that have not yet scaled.
It takes time to get to that point but is well worth it. From there, you can have a nice padding of drawdown and start making serious profits. You really get to start doing this when drawdown stops moving when it reaches the original account balance (there is also no daily drawdown at this point on most accounts). We simply offer additional funds for you to trade with. The reason for this is, just as if you owned your own account, you are expected to build up your own drawdown buffer. As such, if a payout makes you fall below the allowed relative drawdown, then the account will be closed. For example, if the relative drawdown was $99,000 before a request, it will remain $99,000 after the request is processed. * Please note that withdrawing funds will not change your relative drawdown.