Seshego Benefit Consulting KNIGHTS COLLEGE RETIREMENT FUND CHOICES 11 January 2010

SESHEGO BENEFIT CONSULTING WHAT IS BEING MADE AVAILABLE  An explanation letter  A Member Investment Choice (MIC) booklet  Supporting MIC portfolio fact sheets  A member choice form  A presentation on the choices  Illustration software that you can get from Elizabeth Laubscher  A website page with the communication on

SESHEGO BENEFIT CONSULTING CHOICE ISSUES  Why choice?  Trustees’ role in choice funds  Communication available  Elect single MIC portfolio. Annual choice.  Contribution rate and death cover ONCE OFF

SESHEGO BENEFIT CONSULTING FINANCIAL PLANNING  Retirement, Risk & Estate Planning  Retirement - Budget  Set a realistic target  Risk - Who are your dependents  What are your assets  Plugging the gaps  Estate Planning – Get advice, if needed

SESHEGO BENEFIT CONSULTING RETIREMENT PLANNING  Defer retirement  Additional contributions  Invest differently  Modern Portfolio Theory  Growth assets are included for long term capital growth

SESHEGO BENEFIT CONSULTING FTSE/JSE long-term return 61% 0% -10% 29% -8% 16% 25% 47% 41% 19% -23%

SESHEGO BENEFIT CONSULTING Annualised returns over 40-years April 1969 – March 2009 (Gross)

SESHEGO BENEFIT CONSULTING 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%

SESHEGO BENEFIT CONSULTING PORTFOLIO CONSTRUCTION

SESHEGO BENEFIT CONSULTING DEATH COVER  5X annual pensionable salary (net 4%)  3X annual pensionable salary (net 3%)  NIL cover (net 1,5%)  Disability cover not optional  Insurance costs change

SESHEGO BENEFIT CONSULTING INVESTMENT NET OF COSTS  By way of example:  Contribution 14,00% e.g. R100,00  Less Group Life 1,38% e.g. R 9,86  Less PHI (disability) 1,08% e.g. R 7,71  Less admin costs (estimate) 0,65% e.g. R 4,64  NETT towards investment 10,89% R 77,79

SESHEGO BENEFIT CONSULTING IN SUMMARY  Do a budget to set a retirement target, then put in place a retirement plan  Establish the life cover you need  Get professional help if you need estate planning  Stick to your plan

SESHEGO BENEFIT CONSULTING

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