In & out-of-fund default options & annuity strategy workshops
<strong>By: SAIFAA</strong>
<h3><i> ‘</i><i>IN & OUT-OF-FUND’ DEFAULT OPTIONS WORKSHOPS – THE </i><i>SIX</i><i> QUESTIONS & NOTES – </i><i>PREVENTING THE WRONG CHOICE</i></h3>
A major immediate disruptor facing all Independent Financial Advisors (<i>IFAs</i>) are default ‘In & Out-of-Fund’ regulations, applicable to all Pension, Provident Fund and <i>Retirement Annuity</i> Members.
Members of Funds may make decisions based on Counsellor Guidance Default Options that are potentially detrimental to their long term investment Strategies. How do you protect your clients from making the wrong choice?
Our <strong>2019 Workshop</strong> will feature some of the most prestigious names in finance, including <i>Alexander Forbes, Momentum FundsAtWork, Sanlam Employee Benefits, Liberty Umbrella Funds and Discovery Employee Benefits</i> who will answer SIX vital Industry and IFA questions as well as discuss their opinions and views on their default options.
Ascor Financial Planner of the Year 2015/2016 and winner of the International Best Practice Advisor Awards 2017 and Co-Author with Bruce Cameron in the book ‘<i>The Ultimate Guide to Retirement</i>’, <i>Wouter Fourie CFP®</i> will provide you with an array of resources that you need to consider as part of your financial armoury in his presentation on <i>IFA Default Annuity Strategies</i>.
<h3>The SIX vital workshop questions we are asking are as follows:</h3>
<ol>
<li><i>What Trustee/Sponsor Retirement Benefits Counselling and Guidance services will be are offered by the Fund after 1 March 2019, and at what cost to the Fund Member?</i></li><li>What are the Default Products and Services that your Umbrella Funds and the Trustees/Sponsors are going to be offering Members of your Funds (The Range of Product Offerings)?</li><li>Will the Fund Member be able to appoint their own “Independent Financial Advisor (SAIFAA, RDR Independent etc)” as the ongoing Advisor in the event members enrol in these default options?</li><li>Please indicate the advisory fees payable (if applicable) in respect of these default options and whether advisory fees are fixed or negotiable, and are there any limits or maximums.</li><li>What licensing, accreditation or other conditions apply for an Advisor appointed in respect of these default options?</li><li>What, in your opinion, are the competitive advantages of your default “In & Out-of-Fund” individual member options?</li></ol>
<strong>SAIFAA NOTES ON THE DEFAULT OPTIONS TO BE CONSIDERED BY INDEPENDENT FINANCIAL ADVISORS ON BEHALF OF CLIENTS</strong>
<ul>
<li>In terms of this legislation, all Trustees of Retirement Funds will have to offer members; a) A default In Fund Preservation Option in the event of withdrawal prior to retirement – i.e. resignation, b) A trustee-endorsed annuity strategy upon retirement, c) Access to retirement benefits counselling at no cost to the member and d) Have to offer all their Fund Members ‘DEFAULT IN & OUT-OF-FUND OPTIONS’ on withdrawal with institutional Preservation and Annuity Products via various “counselling and guidance” services!</li><li>There is a SAIFAA Advisory Principle that should be followed, namely; it is in the best interest of all Clients to engage with a SAIFAA Member to ensure a “comprehensive, holistic and ongoing” analysis and advisory process that includes all assets and liabilities and not just the default amount within the Retirement Funds!</li><li>One of the realities of the Client/Member Post-Retirement Journey is that the “<i>choice of the Living, Life and Hybrid Annuity option at Retirement</i>” is not a “<i>once only decision</i>” in that as the Client/Spouse/Members who, with a SAIFAA Member who is part of the Unique & SA First Post Retirement Planning Program (PRPC), will need and be required to continually have access to <i>an ever changing advice and guidance program</i> as old age circumstances will change and dictate over many years!</li><li>One of the many examples of this reality of the “continually being required to implement an ever changing advice and guidance program” is the subject of <i>“</i><i>Powers of Attorney (POA)</i><i>”</i> that will be terminated by the forced appointment of a Curator with the substantial Legal and other Costs and the possible ‘cancellation’ of many well planned Long-Term Investment Strategies being a major problem, such as, when Dementia etc arrives!</li></ul>
<strong>BOOK WORKSHOP SEATS VIA DEREK SMORENBURG</strong> – 082 441 5000 – <a href="mailto:derek44@mweb.co.za"><i>\derek44@mweb.co.za</i></a> – website: <a href="https://saifaa.co.za/"><i>https://saifaa.co.za/</i></a>
SAIFAA workshops to be held at Allan Gray Venues on <i>Monday 20th May 2019</i> – 1 Silo Square, V&A Waterfront, Cape Town, <i>Wednesday 22nd May 2019</i> – 32A Jellicoe Ave, Rosebank, Johannesburg and <i>Friday 24th May 2019</i> – 19 Park Lane, The Boulevard, Umhlanga Rocks
Cost of Attendance – Members to pay a CPD Point Registration Fee of R200 – Non-Members to pay a CPD Point Delegate Fee of R1 500 – New IFA Members joining for 12 Months <i>before 12 May 2019</i> will pay R2 400 (R2 000 in the same Practice)
Working out how to provide a sustainable income from your retirement savings is "the nastiest, hardest problem in finance", says William Sharpe, the man who won the Nobel Prize for economics for a theory on how to match investment gains with risk.
