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Retirement Savings - Pot - Withdrawals - My best interest?
By: Ilse de Klerk
Is it in my best interest to take the annual allowable withdrawals?
Quick answer - NO
Reasons:
1 - This is savings for when you want to retire. You do want to retire with enough to be comfortable and keep what you have, now.
2 - Time in this investment is your friend. COMPOUNDING INTEREST is the golden egg.
Other reasons that will differ for each person.
1 - Your marginal tax rate - You will pay that % of tax with each withdrawal
2 - The withdrawal will be included in your taxable income figures when you finalise your annual tax. This could bump you into a higher tax rate.
