financial planning
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- 1. Financial Planning (general) Financial Services Offered Financial Planning(Retrenchment) Money Management Capital Gains Tax Women Market Education Death & Disability Short Term Insurance Business Entities Investments Retirement(Personal) Financial Planning(General) Trust, Wills & Estates
2. Ift he deal sounds too goodt o be true it probably is . Seek objective advice BE CAREFUL! 3. Financial Planning Protection of family and estate Wealth creation Life cover Health cover Disability cover Investment planning Retirement planning 4. Life cover
- We sellLIFEassurance, not death assurance
- It does not interfere with financial plans, but helps to achieve them
- It is money for future delivery
- Its parting with todays earnings to buy rands for the future
5. Disability Cover
- Two things produce income :
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- People at work
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- Capital at work
- If people cannot work any moreanother source of income
- Risk cover theonly wayto have access toalargelump sum on death,disability or severe illness
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- Investments take time tobuild up
6. Think about life and disability
- How will you and your dependants survive without your income?
- If you think youre struggling to make ends meet on your salary, can you imagine your family trying to cope without it?
- How will you cope with the ever increasing cost of living?
7. Retirement Planning
- Planning for a financially independent retirement
Current situation at age65 Working 31% Dependent on state pension 16% Financially independent 6% Dependent on family 47%
- REASONS :
- Income gap
- Infla tion
- Longer life expectancy
- Cost of delay
8. Cost of realising pension fund benefits
- Financial peace of mind is not provided by contributions alone ,but by compounding returns on contributions over time .
- Realising of pension fund benefits implies a loss of the compounding effect .
9. Realising pension fund benefits(continued )
- Income gap factor should be considered :Less years of service=smaller pension
- Money earned for ,retirement should be invested for that purpose
Income gap at retirement -Pension vs Salary 40% gap 60% gap 70% gap 10. Structuring your investment portfolio Investment Planning Emergency fund Income- producing Investments Growth Investment Provide or supplement income Generate capital & protect existing capital
- Participation bonds
- Fixed deposits
- Anchor Income Plans
- Shares
- Endowment
- Policies
- Anchor
- Growth Plan
- Properties
- Kruger rands
For day-to-day contingencies
- Cash on hand
- Savings acc.
- Cheque acc.
- Credit facilities
- Short term insurance
11. The advantage of investing early
- Liesl saves R10 000 p.a. forONLY10 years starting at age 30 and leaves her investment to grow for a further 25 years
- David saves R 20 000 p.a. for 25 years starting at age 40
- Growth rate: 10% p.a.
12. The advantage of investing early 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Year Fund Value Liesl David Illustrative Value R1,912,400 Illustrative Value R2,179,200 13. Planning to meet your needs
- A Qualified financial advice
- B Analysis of needs:now and in the future
- C Well structured portfolio
14.
- Expertise in financialplanning
- Excellent support
A Qualified, objective financial advice O LDMUTUALINTERMEDIARY Client Services Legal Advice Actuarial Support O ldMutual/ Associated Companies 15. Tax Advice
- Minimise tax on your benefits
- Make tax-efficientinvestments
Exempt from tax Average rates Marginal rates 16. Financial Planning Protection of family and estate Wealth creation Life cover Health cover Disability cover Investment planning Retirement planning B Analysis of needs 17. Analysis ofNeeds( continued )
- Professional and/or computer-based financial planning analysis
- Structuring a package and adjusting it at the touch of a button
- Reviewing your will
18. Contingency fund Income- generating investments Growth investments Life, disability and health cover C Well Structured Portfolio 19. Liquidity( Contingency fund )
- Selling redundant assets
- Realising assets
- Role of your bank manager
- Realising retirement fund benefitsincome tax implications
20. Income
- R6 000interest exempt from tax
- Maximise after-tax income
- Investment ofR75 000
Monthly income Fixed deposit R906 R543 Participation bonds R953 R561 Income plan * R718 R642 Before tax After tax ( Guaranteed ) *Assuming a tax rate of40% 21. Making your money work harder for you helping you every step of the way 22. Thank you Financial Planning(Retrenchment) Money Management Capital Gains Tax Women Market Education Death & Disability Short Term Insurance Business Entities Investments Retirement(Personal) Financial Planning(General) Trust, Wills & Estates