Successfully reported this slideshow.

Financial Planning

599 views

Published on

Published in: Economy & Finance, Business
  • Be the first to comment

Financial Planning

  1. 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. 2. “ If t he deal sounds too good t o be true – it probably is .” Seek objective advice BE CAREFUL!
  3. 3. Financial Planning Protection of family and estate Wealth creation Life cover Health cover Disability cover Investment planning Retirement planning
  4. 4. Life cover <ul><li>We sell LIFE assurance, not death assurance </li></ul><ul><li>It does not interfere with financial plans, but helps to achieve them </li></ul><ul><li>It is money for future delivery </li></ul><ul><li>It’s parting with today’s earnings to buy rands for the future </li></ul>
  5. 5. Disability Cover <ul><li>Two things produce income : </li></ul><ul><ul><li>People at work </li></ul></ul><ul><ul><li>Capital at work </li></ul></ul><ul><li>If people cannot work any more another source of income </li></ul><ul><li>Risk cover – the only way to have access to a large lump sum on death, disability or severe illness </li></ul><ul><ul><li>Investments take time to build up </li></ul></ul>
  6. 6. Think about life and disability <ul><li>How will you – and your dependants – survive without your income? </li></ul><ul><li>If you think you’re struggling to make ends meet on your salary, can you imagine your family trying to cope without it? </li></ul><ul><li>How will you cope with the ever increasing cost of living? </li></ul>
  7. 7. Retirement Planning <ul><li>Planning for a financially independent retirement </li></ul>Current situation at age 65 Working 31% Dependent on state pension 16% Financially independent 6% Dependent on family 47% <ul><li>REASONS : </li></ul><ul><li>Income gap </li></ul><ul><li>Infla tion </li></ul><ul><li>Longer life expectancy </li></ul><ul><li>Cost of delay </li></ul>
  8. 8. Cost of realising pension fund benefits <ul><li>Financial peace of mind is not provided by contributions alone , but by compounding returns on contributions over time . </li></ul><ul><li>Realising of pension fund benefits implies a loss of the compounding effect . </li></ul>
  9. 9. Realising pension fund benefits (continued ) <ul><li>“ Income gap ” factor should be considered : Less years of service = smaller pension </li></ul><ul><li>Money earned for , retirement should be invested for that purpose </li></ul>Income gap at retirement - Pension vs Salary 40% gap 60% gap 70% gap
  10. 10. Structuring your investment portfolio Investment Planning Emergency fund Income- producing Investments Growth Investment Provide or supplement income Generate capital & protect existing capital <ul><li>Participation bonds </li></ul><ul><li>Fixed deposits </li></ul><ul><li>Anchor Income Plans </li></ul><ul><li>Shares </li></ul><ul><li>Endowment </li></ul><ul><li>Policies </li></ul><ul><li>Anchor </li></ul><ul><li>Growth Plan </li></ul><ul><li>Properties </li></ul><ul><li>Kruger rands </li></ul>For day-to-day contingencies <ul><li>Cash on hand </li></ul><ul><li>Savings acc. </li></ul><ul><li>Cheque acc. </li></ul><ul><li>Credit facilities </li></ul><ul><li>Short term insurance </li></ul>
  11. 11. The advantage of investing early <ul><li>Liesl saves R10 000 p.a. for ONLY 10 years starting at age 30 and leaves her investment to grow for a further 25 years </li></ul><ul><li>David saves R 20 000 p.a. for 25 years starting at age 40 </li></ul><ul><li>Growth rate: 10% p.a. </li></ul>
  12. 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. 13. Planning to meet your needs <ul><li>A – Qualified financial advice </li></ul><ul><li>B – Analysis of needs: now and in the future </li></ul><ul><li>C – Well structured portfolio </li></ul>
  14. 14. <ul><li>Expertise in financial planning </li></ul><ul><li>Excellent support </li></ul>A Qualified, objective financial advice O LD MUTUAL INTERMEDIARY Client Services Legal Advice Actuarial Support O ld Mutual/ Associated Companies
  15. 15. Tax Advice <ul><li>Minimise tax on your benefits </li></ul><ul><li>Make tax-efficient investments </li></ul>Exempt from tax Average rates Marginal rates
  16. 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. 17. Analysis of Needs ( continued ) <ul><li>Professional and/or computer-based financial planning analysis </li></ul><ul><li>Structuring a package and adjusting it at the touch of a button </li></ul><ul><li>Reviewing your will </li></ul>
  18. 18. Contingency fund Income- generating investments Growth investments Life, disability and health cover C Well Structured Portfolio
  19. 19. Liquidity ( Contingency fund ) <ul><li>Selling redundant assets </li></ul><ul><li>Realising assets </li></ul><ul><li>Role of your bank manager </li></ul><ul><li>Realising retirement fund benefits – income tax implications </li></ul>
  20. 20. Income <ul><li>R6 000 interest exempt from tax </li></ul><ul><li>Maximise after-tax income </li></ul><ul><li>Investment of R75 000 </li></ul>Monthly income Fixed deposit R906 R543 Participation bonds R953 R561 Income plan * R718 R642 Before tax After tax ( Guaranteed ) * Assuming a tax rate of 40%
  21. 21. Making your money work harder for you … helping you every step of the way
  22. 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

×