Get a Will
Ensure it’s Valid and Updated regularly

• Careful of equally dividing assets
• Appoint Legal Guardians for Minor Children
• Appoint Beneficiaries on all policies
• ALL proceeds for spouse – Estate Duty Free
• Separate Offshore Will for Offshore Assets

Trusts
Ensure liquidity in your estate

• Retirement Annuities are Estate Duty Free
• Negotiate Executors Fee’s - 3.5% (3.99% including VAT)

Offshore Investments
Strong rand – it’s time to invest offshore

• Diversification - 20% – 30% offshore exposure
• Know your reasons
• Offshore vs Asset Swap

Investing Offshore
Convert Rands into any currency

• R2 million allowance
• Tax clearance certificate - valid for 3 months
• Disclose all Assets and Liabilities
• Long term objective

Asset Swaps
Invest in Rands – Earn in Rands

• Hassel Free
• No clearance needed
• 30% non retirement – 20% retirement
• No Rand limit

Healthy Savings Plan
An investor without investment objectives, is like a traveller without a destination

• Set Goals
• Set a monthly budget & stick to it
• Need vs Want?
• Plan of action

Short Term Plan
0-3 years– Conservative

• Emergency fund & Luxuries
• Access to cash
• Unit Trusts, EFT & 2nd hand endowments

Medium Term
3-7 years – Moderate

• Use your tax exemptions
• Endowment – don’t cash in
• Company Sinking Fund

Long Term
7 + Years - Aggressive

• Use your tax deductions
• Retirement vehicles
• Finlogic advisors can correctly structure your savings

Only invest in FSB approved products
Get advice from an FSB accredited financial advisor

• Beware of pyramid schemes
• Invest with recognised investment houses
• Compare costs
  • RIY (Reduction in Yield)
  • TER (Total Expense Ratio)

Take advantage of tax breaks
Optimise Compulsory and Voluntary Income

• Utilise R300 000 tax free & Don’t exceed R900 000 cash withdrawal
• Optimise income after 65 by utilising additional tax breaks:
• Increase/Promotion
  • Interest Exemption – R32 000 pa
  • Tax Rebate – R15 935 pa
  • Capital Gains Tax – R17 500 pa
  • Medical costs - fully tax deductible
  • Tax Threshold – R88 528 pa

Use RA’s in retirement
Speak to a Finlogic Financial Advisor

• Increase – Tax Deductions
• Reduce - Estate Duty & Executors Fees
• Reduce - CGT & Donations Tax

Start Now
You can’t afford the cost of delay

• Crunch the numbers and get a plan
• Consult with a Finlogic financial advisor
• Take advantage of your tax breaks

Beef it up
Be honest with yourself

• Bonus
• Overtime/Commission
• Increase/Promotion
• Don’t be too conservative

Don’t touch it
Resignation or retrenchment

• Preserve pension / provident funds
• Don’t cash in

Try to make more than you spend

Know before you owe

• Interest Rate
• Term - minimise your term, maximise your payments
• Extra costs
  • Total charges
  • Cost to own – factor all associated costs
    • Car – fuel, insurance, maintenance, licensing
    • House – rates and taxes, levy, maintenance, insurance

1st pay high interest debts

• Credit Cards
• Pay beginning of the month
• Don’t borrow to pay debt

Have a budget and prioritise

• Pay debt and expenses
• Save
• Then consider luxuries

Consolidating reduces payments on:

• Expenses
• Insurance

Get covered
Don’t delay – “Living Assurance”

• Younger = cheaper
• Whole of life cover
• Multiple claims
• Catch all benefits

Understand your cover
Read your policy document carefully

• Know your benefits
• Don’t forget to claim
• Upgrade your benefits regularly
• Compare company benefits

Capital disability (permanent disability only)

• Lump sum payment
• Pays out tax free
• Occupation and/or impairment

Income Protection (sickness, temporary and permanent disability)

• Monthly income payment
• Income received will be taxed
• Premium can be deducted from tax

Make sure you are not over insured

• Insurance companies combine cover
• Employee benefits are also included
• Confirm with a Finlogic advisor

Always read through your policy document

• Check that all details are correct
• Full disclosure on medical questions
• Understand your loadings & exclusions

Regularly review your insurance... 'Life changing events'

• Buying a house
• Birth of a child
• Marriage
• Divorce
• Change in salary

Financial needs analysis (FNA)

• This makes sure that you aren't under/over insured
• Contact a financial advisor at Finlogic for an FNA.

Understand the Risk

• High reward = High risk
• Risk can be balanced by:
  • Longer investment term
  • Diversification
  • Utilising investment houses with a track record

Utilise a variety of investment vehicles

• Take advantage of tax exemptions & deductions
  • Collective Investments – Unit Trusts
  • Endowment Plans
  • Retirement Annuities

Cost of delay

• Maximise on the value of compound interest
  • E.g. 20 year old saves R200pm for 10 years Payment at age 60 = R819 490 (@ 10% pa interest)
  • E.g. 30 year old saves R200pm for 30 years Payment at age 60 = R455 865 (@ 10% pa interest)
• Rule of 72 (How many years will it take to double your money)
  • 72÷8=9 (It would take 9 years to double your money if you received an annual return of 8%)
• Real return = return less inflation (CPI)

Costs

• Initial Fees
• Management Fees
• Administration Fees
• Guarantee Charges

Get the right advice from a Finlogic financial advisor

Factors that need to be considered

• Risk Profile
• Age
• Reason for investment
• Term of investment
• Marginal tax rate
• Available tax exemptions and deductions
• Current investment portfolio

Travel Allowance

• Keep a log book if you have a travel allowance

Employee Benefits – Fringe Benefit tax payable

• Unapproved Group Risk Cover
• Conforming Keyman Policies
• Deferred & Preferred Compensation Plans
• Full medical aid contribution to be added to payslip
• Employer paid RA’s now tax deductible to employee

Utilise all tax deductions available