1. Income tax analysis for the year of retirement and the year after retirement

Goal:

To minimize income tax in the process.

Strategy:

The income tax analysis includes the following:

• Clients existing financial situation.
• Division of available capital between short-, medium- a long-term investments and including a short descriptions of the pros and cons of each suggested investment.
• Suggested single premium contributions to a retirement annuity to minimize the income tax payable.

2. Capital needs:

Goal:

To provide Capital for immediate and future capital needs.

Strategy:

We, as well as the clients, would agree on the following:

• The total amount of capital available for example: Pension and provident fund capital, gratuity, accumulated leave, existing investments, policies, retirement annuities, inheritance etc.
• The client needs in terms of:
  • Immediate capital requirements i.e., for redeeming of bond(s), to purchase a vehicle, donations, holidays etc.
  • Liquidity
  • Capital growth
  • Income requirement

3. Suggested division of available capital:

Goals:

To satisfy the client’s needs with regards to monthly income and capital growth.

Strategy:

To apply scientific and mathematical formulas to divide the available capital between short-, medium- and long-term needs.

4.Monthly cashlow

This indicates the pre- and after-tax monthly cash flow in terms of the client’s budget.

5. Growth projection

The following factors are taken into consideration:

• Inflation
• Possible increases in pension income
• Existing insurance policies that may mature at a later stage i.e., Retirement annuities, policies etc.
• Other possible forms of income i.e., Earned Income, contractual income, rental income etc.
• Possible changes in interest rates:
• Income tax tables
• Possible changes in income tax laws

6. Summary of existing investments and policies:

RSA Brokers will analyse your existing investments and policies in terms of your risk profile and will advise possible changes accordingly. When policies or investments will mature, RSA Brokers will advise clients in terms of the options available to them.

7. Group Life Insurance

Where applicable we will advise clients of the options available i.e., to convert the cover in group life policies into permanent life insurance.

8.Suggestions to minimise and or replace possible short falls that could result after death to the beneficiaries:

We will make special provision for the fact that the pension from Government pension funds, after the death of the primary retiree may be reduced by either 25% or 50%.

9. Short term insurance:

RSA Brokers have access to a variety of short-term insurance brokers and we do suggest that short-term policies be investigated to possibly reduce premiums because of the change in status to that of a retiree.

10. Medical advice:

We do not give any medical advice but would refer clients to some of our Finsolnet associates who specialise in this subject.

11. Revising Wills:

The clients Will’s, will be revised, please refer to estate and testamentary planning section details.