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Investment Indicators - 4 December 2017 |
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Paul Kruger
Author/Editor |
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Don't limit a child to your own learning, for he was born in another time
- Rabbinical Saying |
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Distributed to 48,940 subscribers.
To advertise with us
click here |
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What if you could focus on doing what you love - looking after your
clients?
Leading Independent Financial Advisory (IFA) practices are using GTC’s
Strategic Partner solution to:
- increase time with clients
- increase earnings
- reduce costs
Shouldn’t you too?
Our staff and systems deliver exceptional service, increasing revenues
and saving costs and time for you, enabling you to build value for
succession.
With offices nationally, we are well-placed to help you.
Call us to discuss a strategic partnership.
t. +27 (0) 10 597 6831
e. info@gtc.co.za
w. www.gtc.co.za
An authorised Financial Services Provider FSP no. 731 |
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| Rates Review |
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1. Secured Investment Rates |
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Please note that (G) indicates a Guaranteed and (L) a Linked product. In order to understand the difference between guaranteed and linked rates,
kindly click here for an explanation. |
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Company |
This Week |
Last Week |
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1Life (L) |
7.540% |
7.550% |
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2 |
Absa (L) |
7.448% |
7.457% |
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3 |
Clientèle Life (L) |
7.250% |
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Company |
This Week |
Last Week |
| 1 |
1Life (L) |
7.540% |
7.550% |
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2 |
Assupol (G) |
7.470% |
7.410% |
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3 |
Absa (L) |
7.448% |
7.457% |
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2. Money Market Funds |
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Please bear in mind that our figures, though based on the actual quotations that you also use, are for information purposes only,
and can never replace the official quotation from the product house. In terms of the guarantees, you are requested
to clarify the exact extent of such guarantees with the product house prior to advising clients. |
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From the Crow's Nest |
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Fixed-income annuities provide financial certainty
post-retirement |
As longevity statistics increase, the
case for guaranteed or fixed income annuities has become stronger.
In the last year, the World Economic Forum has published a
white paper estimating the global gap in retirement savings to
be $400 trillion by 2050. Craig Sher, head of research and
development at Discovery, points out that as you live longer, your
life expectancy grows. “So, if you reach age 65, your life
expectancy goes up to 82 or 84. If you live to 85, your life
expectancy goes up to 91,” he explains. Discovery statistics show
that if you are 40 years old, you are likely to spend 42% of your
life in retirement. If you are 35, 38% of your future life will be
in retirement years. This means that most people are saving too
little, too late.
When you retire, you have two annuity options available to you – a
living annuity and a guaranteed or fixed income annuity. The living
annuity allows you to vary the amounts you draw down each year –
limited to a value between 2.5% and 17.5%. However, investors have
found that these products require them to exercise financial
discipline in order to optimise the longevity of their retirement
savings.
According to the Association for Savings and Investment South Africa
(ASISA), the average living annuity drawdown rate increased from
6.44% to 6.62% in 2016. This illustrates the impact on the
sustainability and longevity of retirement capital for retirees. For
example, if you retire at age 65, start drawing income at 6.62% and
increase your drawdown each year in order to keep pace with
inflation, you will reach the maximum income withdrawal of 17.5%
within 18 years of retirement. Basically, the effect of inflation
will not allow you to continue drawing enough to meet your monthly
expenses after the first 18 years of retirement.
A guaranteed or fixed income annuity, on the other hand, provides
you with a specific income over a specified period, offering you
protection against the risks of longevity and volatile investment
returns. If you choose a Fixed Retirement Income Plan from Discovery
Invest, you can select your guarantee period, such as 10 years,
which means that if you die before the period is up, the annuity
payments will continue to be paid to your heirs or your surviving
spouse until the end of the guarantee period.
Discovery Invest special offer – 10% additional income for three
years
In celebration of Discovery Invest’s 10-year anniversary, the
company is offering clients the opportunity to invest in a Fixed
Retirement Income Plan with an additional 10% income for the first
three years. The 10% is an addition to the annuity income amount,
after allowing for annual escalations and before deducting tax.
After three years, the client’s annuity income will return to the
quoted income annuity amount before deducting tax. For single-life
annuities, the 10% additional income will stop after three years or
when the client dies. For joint-life annuities, the 10% additional
income will only be applied to the current amount in payment and
will stop after three years or when both annuitants have died.
For example, Jessica (55) and Dave (54) invest R1 000 000 into a
Fixed Retirement Income Plan with a 10 year guarantee term, 0%
escalation rate and a 25% reduction on death of first spouse. Their
quoted annuity amount before tax is R7 800 a month. With the special
offer, their annuity amount is increased by 10%. The gross annuity
income will be R8 580 (R7 800 x 110%) They will receive a higher
income of R8 580 every month for the next three years.
Nothing contained herein should be construed as financial advice
and is meant for information purposes only.
Discovery Life Investment Services (Pty) Ltd branded as Discovery
Invest is an authorised financial services provider. Registration
number 2007/005969/07.
Product Rules and Terms and Conditions Apply. |
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| Your Practice Made Perfect |
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New Clientèle Life Linked Growth Plan |
Clientèle Life’s Guaranteed Plans have consistently offered competitive
returns since the inception of the Moonstone Investment Indicators.
In addition to their guaranteed plans, Clientèle Life now also offer a
single-premium linked endowment policy which provides fixed investment
growth and is paid out at maturity, together with the initial
investment. This product will also feature in our comparative rates
section.
The return offered to the client is linked to the return on the
underlying asset, which is procured from one of the five major South
African banks. The initial investment grows according to the linked
growth rate, which is determined at inception.
This product is suitable for investors who:
Product value to clients:
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Investment returns are quoted at inception;
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All returns are after-tax;
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Beneficiaries can be nominated on the policy with the benefit accruing
outside of the estate;
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One full/partial surrender is allowed during the 5 year term;
Enhanced returns on the policy as the policyholder accepts the credit
risk on the underlying linked asset.
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Regulatory Examinations
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A candidate recently wrote:
I don't understand why on earth we use a pencil to write everything
during the exams. We all know that pencil can be erased at any given
time and that does not sit well with me. Why are we using a pencil even
when writing our names or signing documents because wherever there is a
pencil anything can happen so please guys, I deeply know you mean well
but your professionalism is questionable based on pencil usage. Please
review pencil usage.
We referred the request to the FSB, who responded as follows:
Using a pencil for a multiple choice examination, where the answers are
provided by the candidate by means of colouring in the appropriate
block, is standard local and international examination practice. UNISA,
and all other Universities also require their learners to complete their
answer sheets for multiple choice questionnaires in pencil.
The reason for this is very simple – if a learner/candidate wants to
change his/her answer, then he/she can do so. If the learner/candidate
is forced to complete the answer sheet in pen (ink), then the
learner/candidate will not be able to change any of the answers once the
answer has been marked in pen. If the learner/candidate marks more than
one answer for one question, then that question is automatically
cancelled and the learner/candidate does not get any mark for that
particular answer.
This means that if the learner/candidate makes a mistake when choosing
an option, and he/she wants to change the answer, then he/she will be
required to complete a brand new answer sheet and transfer all their
answers onto the new answer sheet. The risk involved is that the
candidate may transfer the answers incorrectly, which will mean that the
candidate may fail the exam as a result.
There is absolutely no ulterior motive to require candidates to complete
their answer sheets in pencil. It is also absurd to think that the
examination body changes the answers or information on the answer
sheets. The packs with the completed answer sheets are opened under
camera surveillance with more than one person present. These security
conditions apply from the time these answers sheets are received, the
packs are opened and the time that the answers sheets are scanned
(electronically marked) and the electronic record is uploaded to the FSB
database.
These are high stake examinations. As a result, only the highest
security protocols are implemented at all times. All processes and
procedures in respect of the examinations are approved by the external
moderator, the Independent Examination Board (IEB). And this includes
the use of pencils when completing multiple choice answer sheets.
Please also note that the examination bodies operate under very strict
service level agreements with the FSB. They make the rules, and we apply
them strictly in accordance with their instructions. |
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Draft PMB Code of Conduct for discussion
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The Prescribed Minimum Benefits (PMB) Code of Conduct (CoC) published in
2010 has been reviewed, and following the incorporation of inputs
received from all the task team groups; the first draft of the Code of
Conduct has now been published.
The draft PMB Code of Conduct is available on the Council for Medical
Schemes (CMS) website for public comment.
Click here to download.
All stakeholders are invited to provide comments, which should be
submitted to the Secretariat, Ms. Ronelle Smit, of the PMB Code of
Conduct task team at
r.smit@medicalschemes.com.
All comments must reach the Secretariat before or on 31 January 2018.
The PMB Code of Conduct task team will meet in February 2018 to consider
the comments before the final document will be published. |
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Regulatory Examinations |
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Self-Help Guidelines to make a
booking, download your certificate or view results |
Candidates who wrote with Moonstone can now view their results,
make a new booking or update their information on our website:
www.faisexam.co.za
Here is what you do:
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Click on the
Moonstone FAIS Exam website (www.faisexam.co.za)
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Click on the
second heading: “Update Your Booking/Personal Details/Get
results”.
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Key in your ID or
Passport Number used to register for the exam: click on Send
password.
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The system will
send a password to the e-mail address you provided at
registration.
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Use this password
to log in on the same address as above:
Type in the password – do not copy and paste.
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Click login.
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You will then be able to make a booking, download your
certificate or view results.
Frequently Asked RE Questions
– Answers to questions on REs and preparation material
DOFA - Do's and Don'ts
Email enquiries should be addressed to
faisexam@moonstoneinfo.co.za. You can phone us on
021 883 8000 - select option 2 to speak to one of our
consultants. |
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Careers Platform
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Are you hiring? Advertise your position on Moonstone’s Career Platform
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The Moonstone website -
www.moonstone.co.za
- enjoys an average of 15 000 visits and approximately 39 000 page views per month. |
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Moonstone boasts an exclusive newsletter mailing list of over 49000
dedicated financial decision makers who receive 2 newsletters per week. |
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Our audience is relevant and industry specific: individual and corporate advisors and brokers in the following financial sectors:
iInvestment, Risk, Healthcare, Banking, Retirement, and Insurance. |
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Featured Positions |
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Personal Assistant and
Administrator of investments, life insurance and Medical Aids:
Vesto Capital, Moorreesburg - We are looking for a qualified,
experienced and well groomed lady to commence employment on 8 January
2018.
Read More
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Short Term Claims
Administrator:
The Insurance Center, Westville, Durban - The successful applicant
must be experienced, work unsupervised and be competent to negotiate
claims settlements at the highest level.
Read More
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Financial Sales Consultant:
Quest Staffing Solutions, Cape Town - You will provide qualified financial advice directly to clients and
therefore a minimum of 6 months Outbound Call Centre sales experiences or 12
months face to face financial sales, with a RE qualification will be required.
Read More
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Group Compliance
Practitioner:
LegalWise, Gauteng - You will play a key role in assisting the Group
Compliance Manager to enhance and maintain the compliance strategies and
processes, as well as a culture of ethics and compliance, across the
Group.
Read More
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In Lighter Wyn |
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Sweet Revenge and Irish Firefighters |
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Thanks, Roche Cowley
Sweet Revenge
A deaf mute golfer walks up to a foursome on the first hole, hands one
of the players a card that says: “I am a deaf mute, playing as a
single, may I play through?”
It turns out that the player that received the card is a real jerk,
shakes his head no and points the deaf mute to go back.
A few holes later the jerk is standing in the fairway and gets hit
in the back by a golf ball. He turns around, cheesed off, and sees
the deaf mute holding up four fingers.
“FORE!”
Irish Fire Fighters
One night outside a small town in Southern Ireland, a fire started
inside the local chemical plant. In the blink of an eye, it exploded
into massive flames. The alarm went out to all fire departments for
miles around.
When the fire fighters appeared on the scene, the chemical company
president rushed to the fire chief and said: "All our secret
formulas are in the vault in the centre of the plant. They must be
saved. I'll give 50,000 Euros to the fire department that brings
them out intact."
But the roaring flames held the fire-fighters off. Soon more fire
departments had to be called in as the situation became desperate.
As the firemen arrived, the president shouted out that the offer was
now 100,000 Euros to the fire department who could save the
company's secret files.
From the distance, a lone siren was heard as another fire truck came
into sight. It was the nearby rural township volunteer Fire Company
composed mainly of men over the age of 65.
To everyone's amazement, the little broken-down fire engine roared
right past all the sleek newer engines that were parked outside the
plant. Without even slowing down, it drove straight into the middle
of the inferno. Outside, the other firemen watched in amazement and
disbelief as the old timers jumped off right in the middle of the
fire and fought it back on all sides.
It was a performance and effort the like of which had never been
seen before. Within a short time, the old timers had extinguished
the fire and saved the secret formulas.
The grateful chemical company president announced that for such a
superhuman feat he was upping the reward to 200,000 Euros, and
walked over to thank each of the brave fire fighters personally.
The local TV news reporter rushed in to capture the event on film,
asking their chief, "What are you going to do with all that money?
"Well," said Paddy Murphy, the 70-year-old fire chief, "Da foist
ting we're gonna do is fix da brakes on dat truck!"
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Tel: +27 21 883 8000 | Fax: +27 21 883 8005
info@moonstoneinfo.com
www.moonstone.co.za
P.O. Box 12662, Die Boord, Stellenbosch, 7613, Republic of South Africa
Disclaimer:
Services and products advertised by external product suppliers in
this newsletter are paid for by the respective suppliers. Moonstone
does not endorse any opinions, conclusions, data, products, services
or other information contained in this e-mail which is unrelated to
the official business of Moonstone and furthermore accepts no
liability in respect of the unauthorised use of its e-mail facility
or the sending of e-mail communications for other than strictly
business purposes.
The complete disclaimer can be accessed
here. |
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©2015 Moonstone. All rights reserved. |
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