1. Why women should have their own financial plan

2. In the past women… Used to be… Housewives Mothers Caretakers

3. But today… Women equal to: 52% of the SA population and make up.. 39% of the workforce of which 51% are in professional and technical positions 68% are black professionals 47% have all managerial, political, professional and executive positions

4. And only… 34% of retirement annuities… 43% of life policies… 38% of endowments/savings products… 27% of funeral policies… 17% of short-term cover… 15% of medical insurance.. are owned by women

5. Remember that… Women live longer than men 6% retire financially independent Dual income families need two pensions Women need to break career paths to raise children Medical costs escalate specially at retirement Inflation halves the buying power/value of your money every 8 years (rule 72: divide 72 by current inflation rate= every x year value of money halves)

6. 2002 2012 R13.95R37.99 COKE CAN 6pack INCREASE 172% 2002 2012 R21.99R63.99 RICOFFY 750g INCREASE 191% 2002 2012 R58.95R144.95 CASTLE LAGER 24 INCREASE 146% 2002 2012 R3.61 R12.22 PETROL/liter INCREASE 239% More sobering thoughts… Inflation Buying power of money is decreasing - Make provision

7. 2002 2012 R26.99R53.99 SKIP WASHING POWDER 2kg INCREASE 100% 2002 2012 R5.59R17.49 IWISA MAIZE MEAL INCREASE 213% 2002 2012 R4.75R11.99 LAYS CHIPS 125g INCREASE 152% 2002 2012 R4 800R14 100 HIGH SCHOOL FEES/year (GREY GOLLEGE BLOEMFONTEIN) INCREASE 194% More sobering thoughts… Inflation Buying power of money is decreasing - Make provision

8. 2002 2012 R7 590 R15 000 * THREE-BEDROOM HOUSE DOUBLE GARAGE, SWIMMING POOL IN NEWLANDS CT (monthly rental) INCREASE 60% 2002 2012 R95 750 R158 900 FORD IKON INCREASE 66% More sobering thoughts… Inflation

9. The truth is… 50% of marriages end in divorce 50% of women over 65 are widowed or divorced Women suffer dread diseases earlier and more frequently than ever before Life policies are often ceded to creditors

10. More sobering thoughts… Most working people dream about a carefree retirement in the future. Reality is quite different for most who reach retirement Research over a long period indicates that, out of every 100 South Africans who work, the situation at age 65 would probably be as follows: - 49 will be dependent on the state or family - 29 would have died - 12 will be bankrupt - 5 will still be working - 4 will be able to retire comfortably - 1 will be wealthy

11. More sobering thoughts... Salary cheques left 480 360 240 120 Age 25 35 45 55

12. Historical Hysterical realities? The “Cinderella” syndrome -“Someone will rescue me!” The “It won’t happen to me” syndrome

13. Have you ever pictured your life if… Your husband dies, his business is in trouble and all the policies are ceded to the bank? He is retrenched and his group life cover falls away? He has no policies and is now uninsurable? You’re divorced, he dies and you have to compete with his new family for maintenance? You wanted a divorce but couldn’t afford an attorney? If he retires earlier than expected? If he dies without a will?

14. Women are from Venus Surveys reveal Men’s major fear in old age is loneliness Women’s is poverty

15. Make the decision to take control Find an intermediary you trust Tackle debt Prepare and stick to a budget Getting started

16. What you are entitled to from your intermediary Trust and mutual respect Analysis of your financial status Discussion of personal and financial goals Written recommendations Agreement on plan Annual review

17. You are not alone in the debt trap South Africans are deep in debt 130 000 people receive summonses every month for defaulting on debt Nearly 12% of the workforce can expect to have debt judgments against them The Reserve Bank puts household debt at 51% of household income

18. Budgeting is a family affair Three steps Where are we now? - What does your spouse/partner earn? - Gross earnings vs “Take home” pay What are we going to change? Discipline. Dedication. Control

19. A balanced financial plan Creation of wealthProtection Savings & Investment Retirement EmployerOwn Pension/ Provident Retirement annuity After tax savings DeathDisabilityMedical cover Dread disease

20. A balanced financial plan Creation of wealthProtection Savings & Investment Retirement EmployerOwn Pension/ Provident Retirement annuity After tax savings DeathDisabilityMedical cover Dread disease

21. Protection Death - Afford any debts and costs of untimely death Disability - Ensure you can survive any loss of income Medical cover - Hospital and doctors’ costs Dread disease - Surviving dread disease

22. Dread disease Heart disease - 25% of women will suffer from cardiovascular disease before age 60 Cancer - 1 in 7 women will develop cancer

23. The good news is… Heart disease - 80% of heart attack patients survive Cancer - 50% are alive 5 years after diagnosis Stroke - 1950: survival rate 11% - Today: 75%

24. The cost of surviving 1/3 = direct medical costs 2/3 = indirect expenses including - Home or car modifications - Alternative medicines or treatments - Patient, spouse and caregiver’s loss of income - Rehabilitation e.g. Physio - Reconstruction and prosthetics

25. A balanced financial plan Creation of wealthProtection Savings & Investment Retirement EmployerOwn Pension/ Provident Retirement annuity After tax savings DeathDisabilityMedical cover Dread disease

26. Savings and investments Emergency fund “Celebration of Life” fund Education fund Long-term growth fund

27. Cost of delay Regular contribution R500 pm – starting at different ages, will grow to age 65, assuming a 10% pa net investment return 20 25 30 35 40 45 50 55 60 65 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Starting age Retirement savings - the cost of delay

28. Money at the end “Having money left at the end of your life is no problem, having life left at the end of your money is.” - Samuel Baldwin

29. Imagine if… You had your own policies on his life You had your own disability cover You had your own dread disease cover You contribute to a retirement fund and supplement any shortfall You had a nest egg for education You had an emergency fund

30. The rest of your life “Take care of the future. It is where you will spend the rest of your life.” - Charles Kettering

31. Thank you