BELGOTEX FLOORCOVERINGS
14
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS BELGOTEX FLOORCOVERINGS CHOICES MARCH 2010
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BELGOTEX FLOORCOVERINGS. CHOICES MARCH 2010. Feedback. New administrator installed Provident transfers became fully taxable Retirement R300k applies to retrenchments, and SARS apply late Belgotex Carpets Provident Fund transfer Nothing further on retirement reform - PowerPoint PPT Presentation
Transcript of BELGOTEX FLOORCOVERINGS
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
BELGOTEX FLOORCOVERINGS
CHOICES
MARCH 2010
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
Feedback
New administrator installed Provident transfers became fully taxable Retirement R300k applies to retrenchments, and
SARS apply late Belgotex Carpets Provident Fund transfer Nothing further on retirement reform www.saopenfund.co.za/Belgotex.htm Online access to benefit values Costs continue to reduce Investment markets ?
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
FTSE/JSE long-term return
-23%
-10%
19%
41%
47%
-8%
25%
16%61%
0%
29%
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
Portfolio returns to 31/12/2009
Capital Guaranteed 7,23% , 2008 8,07% , +3% - 8,9% , 2008 3,0% +5% - 13,3% , 2008 (3,3%) , +7% - 15,1% , 2008 (6,5%) Inflation – 6,3%
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
Member Investment ChoicePortfolios have different asset exposures
Investment of R100 from 1960 to September 2008
291,717.21
11,114.74
12,704.26
5,513.33
100.0
1,000.0
10,000.0
100,000.0
1,000,000.0
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Year
Rand V
alu
e
Equities Bonds Cash Inflation
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
FINANCIAL PLANNING
Retirement Planning Risk Planning Estate Planning
Illustrative assistance
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
INVESTMENT PLANNING
Defer retirement Additional contributions Invest differently Modern Portfolio Theory More equity means more chance of
missing the target
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
Risk Time line
5 5 5 5
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
INVESTMENT CHOICES
Inflation plus 7% Inflation plus 5% Inflation plus 3% Capital guarantee portfolio How are you going to invest after
retirement? Default is Inflation plus 5%
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
Death Cover 1X annual pensionable salary from fund 2X additional cover facility Underwriting required before increases End of March or “life event” option Premium remains constant (print & sign
form) Additional nomination form required Disability cover not optional
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
IN SUMMARY
Do a budget to set a retirement target, then put in place a retirement plan
Establish if you need life cover Get professional help for estate
planning Stick to your plan
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS
www.saopenfund.co.za
SA OPEN PENSION, PROVIDENT & PRESERVATION FUNDSSA OPEN PENSION, PROVIDENT & PRESERVATION FUNDS14
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