Post on 23-Aug-2020
DISCRETIONARY PRODUCT OPTIONS AND ADVANTAGESLinda Blom | Business Development Manager | Glacier by Sanlam
PRODUCTS FOR GROWTH
D I S C R E T I O N A R Y P R O D U C T S
CashOptionEndowments
Glacier Sustainable
World Enhancer
InvestmentPlan
PRODUCTS FOR INCOME
D I S C R E T I O N A R Y P R O D U C T S
Voluntary Life Annuity
Investmentplan
Term Annuity
ENDOW MENTS
N O E X E C U TO R ’ S
F EES
L I Q U I D I T Y I N T H E ESTAT E
2
3
4
1
5
PROTECTION FROM CREDITORS
Endowment
5-year
5+5
2
3
4
1
5
PROTECTION FROM CREDITORS
Cash-in
Maturity
5+5
5+4
Reinvest
Withdrawal
2
3
4
1
5
PROTECTION FROM CREDITORS
Buy an asset
Maturity
5+5
2
3
4
1
5
PROTECTION FROM CREDITORS
Continuation
Maturity
5
2
3
4
1
5
PROTECTION FROM CREDITORS
Death
Beneficiaries
Beneficiary | Spouse, child, stepchild, parents
TAX BENEFITS
TA X E D I N O W N H A N D S
Unit trust or Investment Plan
Tax on plan must be paid over by the client each year
Own tax rate
Endowment and sinking fund
Tax on the policy is deducted and paid over by Sanlam
Fixed tax rate
TA X E D I N T H E F U N D
TAXED W ITHIN YOUR OWN HANDS
Direct unit trust /
Investment plan
Income tax
45%
CGT
Up to 18%(40% inclusion)
EQUITY
TAXED WITHIN THE FUNDEndowment /
Sinking fund
CASH
interest
BONDS
interest
PROPERTY
rental income dividends
SIM
Balanced
Fund
Income tax Income tax
Income tax
CGT
CGT
Dividend tax
CGT
30%
30%
30%
12%
12% 12%
20%
ENDOW MENT VS INVESTMENT PLAN
ENDOWMENT INVESTMENT PLAN
Income tax 30% 45%Capital gains tax 12% 18%CGT inclusion rate 40% 40%
TAX ON TRUSTS : F IVE-FUND APPROACHName of fund Rate of normal
income tax
Rate of tax
CGT
The untaxed policyholder fund 0% 0%The individual policyholder fund 30% 12%The company policyholder fund 28% 22.4%The corporate fund 28% 22.4%The Risk Policy Fund 28% 11.2%-22.4%
TRUST
TAX ON TRUSTS
Income tax
45%
CGT
36%(80% inclusion)
OPPORTUNITIES
TrustsIndividuals
with a higher tax rate
than 30%
Professionals,
Farmers,
Business
owners (Sec 63 protection)
1 2 3
GLACIER ENDOW MENT TOOL
SUMMARY: THE BENEFITS OF AN ENDOW MENT:
1 2 3
4 5
Ease of administration
Taxbenefits
Protection from creditors
Provides liquidityin the estate
Savings on executor’s fees
6
Regular tax-free withdrawals after
5 years(in-fund tax still applicable)
EN D O W M E N T
PR O D U C T S
ENDOW MENT PRODUCTS
Vantage Life Plan
No penalties in first 5 years
No guarantees
Wealth Edge Endowment Plan
Penalties in first 5 years (10%, 8%, 6%, 4%, 2%)
Guarantees
Loyalty bonus No loyalty bonus
Glacier platform
8% additional allocation
Life platform
No additional allocation
6 FUNDS OFFERING GUARANTEES
Guaranteed funds Initial unit
price
Highest unit
price
SIM Inflation Plus 100% 95%Allan Gray Stable 100% 95%Coronation Capital Plus 100% 90%Nedgroup Opportunity 100% 90%SIM Balanced - 80%Allan Gray Balanced - 80%
• Explicit guarantee• Measured for 5-year period
(Over the past five years as at March 2020)
IMPACT OF COVID19 ON POL ICY MATURITY MARCH 2020 – NEDGROUP OPPORTUNITY
1
2
Policy with protection
Policy without protection
Nedgroup Investments Opportunity Fund
7580859095
100105110115120
01/04/2014 01/04/2015 01/04/2016 01/04/2017 01/04/2018 01/04/2019
Nedgroup Investments Opportunity 100% of initial or 90% of the highest unit price
I N V ES T M E N T PL AN
INVESTMENT PLAN
Discretionary
plan
Taxed in own hands
Estate duty &
Executor’s fees
Not regulated by
LT Insurance Act
No restrictions (Sec 54)
No term
Ad-hoc any amount
Repurchase any amount
Draw income or not
Phasing-in
TaxpayingNon-taxpaying
Individuals Trusts Lump sum
& debitorder
C A SH O PT I O N
CASH OPT ION
Investment
options
SIM Enhanced Yield
A cost-effective
parking facility
for short-term cash
No Glacier upfront or admin fee
Flexible! Withdraw or transfer
to any Glacier product at any time
Taxed in personal capacity
Sanlam Diversified
Income FoF
Glacier Global Stock Feeder
FoF
Glacier Invest Flexible
Income Wrap
Glacier Money Market
GLACIER SUSTAINABLE
W ORLD ENHANCER
SIMILARITIES: GLACIER CAPITAL ENHANCER
Global portfolio
100% allocation All fees priced in
5-year termsinking fund
Enhanced returns if positive index
12% CGT
Capital guarantee
No currency risk
Top-rated banks
ENHANCED RETURNNegative return Positive return
100% Capital protection
* 352%
(or 3.5 times)
after tax
400% (or 4 times) the global portfolio return
Determined at inception
EXAMPLES | R1 000 000 (X4 )
Global portfolio negative +5% +15% +25%
Participation (pre-tax) 0% +20% +60% +100%Pay-off (pre-tax) R1 000 000 R1 200 000 R1 600 000 R2 000 000Annualised return (pre-tax)
0% 3.7% pa 9.9% pa 14.9% pa
RC8 EURO INDEX
First tranche available 11 August to 18 September
THANK YOU
Any information contained in this presentation as well as any opinions expressed and information provided by any employee, officer or director of Sanlam Life Insurance Limited (“Sanlam”) and any of its subsidiaries during and pursuant to this presentation, shall not be construed as advice as contemplated in the Financial Advisory and Intermediary Services Act 37 of 2002. Neither Sanlam nor any of its subsidiaries accordingly accepts any liability whatsoever for any direct, indirect or consequential loss arising from the use of this document or its contents.
G L A C I E R F I N A N C I A L SO L U T I O N S ( PT Y) LT D I S A L I C EN S E D F I N AN C I A L SERVI C E S PR O VI D E R .
Glacier Financial Solutions (Pty) Ltd. | A member of the Sanlam Group | Private Bag X5 | Tyger Valley 7536 | Email client.services@glacier.co.za | Tel +27 21 917 9002 / 0860 452 364 | Fax +27 21 947 9210 | Web www.glacier.co.za | Twitter @GlacierBySanlam | Reg No 1999/025360/07 | Licensed Financial Services Provider The Glacier Sustainable World Enhancer is set up in a sinking fund policy underwritten by Sanlam Life.Sanlam Life Insurance Ltd. | Email life@sanlam.co.za | Tel + 27 21 916 5000