Pension Payout Advice

[LikeToKnow007]

Need advice regarding my pension payout.

I resigned from my job that I had for 7 months and decided to ask for a payout. During the time working I did and still do have a private RA. So basically have 2 retirement funds.
I am now in the process of purchasing a home and have got my pension payout. I am considering using it as part of my deposit so that I can have lower Interest Rate as well as lower monthly installment. Not sure where I would invest the payout if I do not use as part of deposit. Need advice as to if this is a good idea. Adding this to my deposit would save me around R200 000 interest paid back over the term.

 

[JayM]

What's your interest rate on your bond? You need to beat that (after tax) if you decide to invest in something else instead. And make sure it's an access bond so you can get the money out again if you really need it.

 

[LikeToKnow007]

The IR would be about 8%

 

[Kosmik]

Did you receive the payout already ie: not gone into a preservation but cashed? That would mean you paid tax already so yeah, I would think stick it in the bond as long as its access, best interest vehicle you will get but don't lock it in.

 

[LikeToKnow007]

It will be an access bond yes. And yes, I have received the the payout

 

[JayM]

The IR would be about 8%

Putting it in the bond might be your best bet. The only reason not to do it is for diversification by sending and investing it offshore.