1. RETIREMENT FUND CHOICES 26 February 2010 Seshego Benefit Consulting
LEBONE ENGINEERING
RETIREMENT FUND CHOICES 26 February 2010
Seshego Benefit Consulting

2. FUND CHANGE Rand Executive to SA Open Provident
Lebone Management Committee
Online access to fund values
Member Investment Choice (MIC)
Sage transfers finalized end of 2009
Dual benefit until Randex transfer approved

3. SESHEGO BENEFIT CONSULTING
MIC CHOICE
Why choice?
Trustees’ role in MIC choice funds
Communication available
Elect single MIC portfolio.
Annual choice.
SESHEGO BENEFIT CONSULTING

4. 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 Solomon Bokake
A website page with the communication on
SESHEGO BENEFIT CONSULTING

5. SESHEGO BENEFIT CONSULTING
FINANCIAL PLANNING
Retirement, Risk & Estate Planning
Retirement planning – Need a budget
Set a realistic target
Risk – How much is needed outside fund?
Estate Planning – Get advice, if needed
SESHEGO BENEFIT CONSULTING

6. 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

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

8. Annualised returns over 40-years April 1969 – March 2009 (Gross)
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9. 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

10. PORTFOLIO CONSTRUCTION
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11. SESHEGO BENEFIT CONSULTING
DEATH COVER
3X annual pensionable salary
Disability cover (approx. 75% of monthly salary)
Insurance costs change
SESHEGO BENEFIT CONSULTING

12. INVESTMENT NET OF COSTS
By way of example:
Contribution                                          13,00%   e.g.  R100,00
Less Group Life                                    1,02%    e.g.  R   7,85
Less PHI (disability)                             0,74%    e.g.  R   5,70
Less admin costs (estimate)                  0,65%    e.g.  R   5,00
NETT towards investment              10,59%           R 81,45
SESHEGO BENEFIT CONSULTING

13. SESHEGO BENEFIT CONSULTING
IN SUMMARY
Do a budget to set a retirement target, then put in place a retirement plan
Check if you need additional risk benefits
Get professional help if you need estate planning
Stick to your investment plan
Your MIC will apply to all monies post Randex transfer
SESHEGO BENEFIT CONSULTING

14. SESHEGO BENEFIT CONSULTING

15. SESHEGO BENEFIT CONSULTING
Questions
SESHEGO BENEFIT CONSULTING