RETIREMENT PLANNING

JOHAN FOUCHE

PLANNING YOUR RETIREMENT

PRACTICAL TIPS

QUESTIONS

RETIREMENT PLANNING

INVESTMENT STRUCTURES

INVESTMENT STRUCTURES

Financial Planner

Administrator

Endowment Growth PlanLinked Inv.Ret. Ann. Living

AnnuityProvident

FundPreservation

Fund

Investment Vehicle ( Taxation)

Low Medium High

Cash Bonds Property Equity

Over 1 000 Funds

Fund Manager

Administrator

Endowment Growth PlanLinked Inv.Ret. Ann. Living

AnnuityProvident

FundPreservation

Fund

Investment Vehicle ( Taxation)

Financial Planner

Fund Manager

Lifestyle Wealth Programme

Investment StrategyInflation + 2 % - 3 % Inflation + 3 % - 4 % Inflation + 4 % - 5 % Inflation + 5 % - 7 %

Cash Bonds Property Equity

PLANNING YOUR RETIREMENT

WHAT IS A FLIGHT PLAN ?flight planningWeb definitionsFlight planning is the process of producing a flight plan to describe a proposed aircraft flight. It involves two safety-critical aspects: fuel calculation, to ensure that the aircraft can safely reach the destination, and compliance with air traffic control requirements, to minimise the risk of ...http://en.wikipedia.org/wiki/Flight_planning

Lifestyle Wealth Programme

Fligh

t Plan

INCOME TAX

Option 1 Option 2 Option 3

Return 5.50% 8.00% 12.00%RIY 0.00% 1.00% 2.00%

Inflation      Nett Yield 5.50% 7.00% 10.00%

Capital 1 000 000 1 000 000 1 000 000Interest 55 000 70 000 100 000

Interest Exempt 34 500 34 500 0Taxable Interest 40% 20 500 35 500 0

Tax 8 200 14 200 0Net Income 46 800 55 800 100 000Net Return 3.30% 4.20% 10.00%

Capital After 5 yrs R 1 182 369 R 1 237 542 R 1 659 020 140.31%

Summary

1 2 3         

Current Income per month 3 900 4 650 8 333       

Projected Capital after 5 yrs 1 182 369 1 237 542 1 659 020        Increase

Income pm after 5 yrs   R 5 419.19 R 7 219.00 R 13 825.17 255.11%

Effect of Income Tax

TIPS ON RETIREMENT PLANNING

How to Plan a VFR Cross Country Flight10 Steps to Help You Plan

1. Choose Your DestinationChoosing a destination is easy, for the most part. Much of the time, pilots choose to fly to the airports with the best restaurants and best service.

2. Choose Your RouteChoose a route that will allow you to fly at an optimum altitude and cruise setting for your aircraft.

3. Get a Weather BriefingThere are a variety of different ways you can obtain weather information.

4. Choose an Altitude and Cruise ProfileYou'll want to fly high enough to maintain the required clearance from terrain and obstacles, of course, but you'll want to consider aircraft performance and the ability to find checkpoints from the air, as well.

5. Compute Airspeed, Time and DistanceYou'll need to complete the speed, distance and time for each leg of the flight as well as fuel consumption

6. Familiarize Yourself with the AirportIf you've ever been stuck at a busy airport without an airport diagram, then you know that it's imperative to keep your situational awareness even after you land.

7. Double-Check Your EquipmentIf you're reliant on certain navigational instruments, make sure they work. Make sure you are equipped with survival gear, appropriate clothing for the weather, flashlights, charts, and water.

8. Get an Updated BriefingFor most, it takes a few hours to get everything prepared for a cross-country flight. Weather can change quickly and airports can close unexpectedly, so be sure to call the flight service station for an abbreviated briefing. 9. File a Flight PlanWhile you're getting your abbreviated weather briefing from the pilot weather briefer, go ahead and file a flight plan

10. Be Prepared for the UnexpectedA flight plan makes cross-country flying a breeze. But as everyone knows, sometimes things don't go as planned. Be prepared mentally to adjust your plans as necessary.If you plan for the unexpected, you'll be ready for anything.

How to Plan your Retirement10 Steps to Help You Plan

1. Choose Your DestinationDecide on the date you are planning to go on retirement.

2. Choose Your RouteWhat do you intend doing once you are going on retirement.

3. Get a Weather BriefingEstablish the economic environment that you will be retiring in.

4. Choose an Altitude and Cruise ProfileDecide at what standard of living you want to live. Income requirement etc.

5. Compute Airspeed, Time and DistanceDo a complete Financial Needs Analysis

6. Familiarize Yourself with the AirportUnderstand every stage of your retirement plan

7. Double-Check Your EquipmentGet everything in order before going on retirement..

8. Get an Updated BriefingConstantly liaise with your Financial Planner to ensure you know exactly you are kept up to date

9. File a Flight PlanDiscuss your retirement plans with your family.

10. Be Prepared for the UnexpectedEnsure that you have emergency funds for the unexpected.

Obtain the services of an accredited Financial Planner. No one product can provide for all your financial needs. Always consider the effect inflation has on your investments. (Rule of 72).

72 / Inflation Rate is the time it takes the value of R 1.00 to become 50 cents. 72 / 6 = 12. In 12 yrs R 1.00 will be worth 50 cents.

Income requirements and Capital Growth needs to be addressed separately. Do not always look for the “highest” interest rate. Always risk associated. Always diversify your portfolio. Second residential properties are not an investment option. Pay off debt on which you pay more interest than earned on investments. Remember one cannot eat bricks and mortar. Replace if possible, all appliances before retirement. Capital from pension fund is meant for Capital Growth. Not fancy new cars.

PRACTICAL TIPS

Portfolio should make provision for: Income Capital Growth Emergencies.

Income tax has a significant effect. Don’t get caught in the trap of “needing access” to funds at the cost of receiving low return on funds. Be aware of donations Tax. Trust are not always the answer Pay a man what he is worth Don’t be greedy !

PRACTICAL TIPS

THANK YOU

QUESTIONS ?