Financial Planning

1
Financial Planning

• Monique Message

2
Agenda

• What do you want to do with it?

3
Change in the Lifecycle
Source Bernard Salt KPMG Beyond The Baby
Boomers Generation Y
4
How can we help you?

• Create a flight path to your future wealth
• Minimise tax
• Right investment choices
• Protect your biggest asset

5
Borrowing to invest

• Start investing early
• Invest your own money and other peoples money
• Only appropriate for those who are prepared to
  take an aggressive investment approach

6
Start as soon as you can power of compound
interest

• Nick
• At 21, invests a lump sum of 5,000
• He adds 1,000 p.a until he turns 30
• He then leaves it alone until he turns 65
• Nicks total investment is 14,000
• At age 65 he will have 332,413

• Amy
• At 31, puts aside 5,000
• She adds 1,000 p.a until she turns 65
• Amys total investment is 39,000 (nearly 3 times
  as much as Nick)
• At 65 she will have 227,077

7
Borrowing to Invest

• Steve has been saving for 2 years and has 45,000
  in an ING CMT. Steve is 27 and wanting to
  increase his savings. He has 600 per month
  excess cash which he can contribute to his saving
  plan

8
Example - Steve

• Solution
• Take his 45,000 and borrow 45,000 using a
  margin loan and invest the 90,000 in an
  aggressive growth portfolio of shares and
  property (90)
• Invest 600 per month and borrow 600 per month
• After 2 years Steve now has 202,000 invested
  he owes 85,400 equity of 116,600 39 return
  over the 2 years

9
Protecting your biggest asset

• What is your biggest asset?

10
Earning capacity

• Years to retirement 25
• Annual salary - 80,000
• Accumulated earnings at 6 growth
• Lump sum - 4,388,000

11
Wrap up take control of your financial future
now

• Invest in your future start early
• Manage your debt by eliminating bad debt
• Protect your lifestyle
• Invest for the long-term
• Good advice is priceless

12
QUESTIONS?