PENSION AND PROVIDENT FUND VALUE PROPOSITION

I help companies avoid HIGH-COST employee benefits & POOR performing retirement funds while attracting & retaining staff.

Business Owners | CEO’s | Financial & HR Directors

You know how insurance companies charge you massive admin and management fees on your employee benefit schemes and pension/provident funds, without actually delivering value for money?
I solve this.. I cut through the complexities of setting up and managing employee benefit schemes to create certainty and confidant decisions.  So you can focus on what’s important: growing your business.

Please see some questions that might help and assist you in finding a need for corporates:

Does your company provide you with a Pension or Provident fund, or group risk benefits such as Life Cover, Funeral Cover, Disability Cover, etc.?

• If not then I can assist.
• If yes – I can review and look at reducing costs and admin for HR while adding value from multiple perspectives including : dedicated fund assistance staff, investment specialists, workshops and employee empowerment.
• Does your current fund administrator review / re-broke the Pension / Provident / Group Risk plan annually to make sure that you are covered at a competitive rate?
• Does your current fund administrator set up annual training and financial wellness day to educate your staff of their benefits, how they work and what they are?
• Does the current fund administrator have a dedicated administration team to relieve your HR department of unnecessary employee benefits related administration?
• Did you know that a cost free review will most likely result in a reduction of costs from your current provider?

Business Owners| Retiree’s| Investors| Retrenches

With all the investment choices, volatile markets and political unrest it’s extremely difficult to make confident investment decisions with your hard earned money. Business owners need access and wealth protection to their working cash flow, while having an expansion plan with great return potential. Retiring can be an very stressful time and making sure you will have enough money for the rest of your life, traveling and laying on the beach. Being retrenched can be quite scary and cost you more than just your job if you are unaware of the taxation on your pension fund.

I assist with these problems…

HOW?

I allow clients to make confident and trusted decisions to create certainty in a volatile and politically influenced market. With our expert investment advice and countless man hours of analysis from our research teams you can rest assured that I am making your hard earned money work hard for you. I structure business reserves in short term accessible funds to save tax and outperform other cash vehicles like money market and call accounts. I evaluate and scrutinize current retirement savings to measure a tax efficient portfolio that will allow clients to meet their retirement goals and incomes. I preserve wealth through preservation of pension funds that attracts no tax and continues to invest your retirement funds with the highest growth potential.

Business Owners | Members | Share Holders | Directors

By providing bespoke financial advice, developing quality relationships and caring for people, so that I can help fulfil their goals and aspirations; I implement financial solutions for my clients through selfless dedication to them and their families.

As your business grows in value and changes over the years, the one thing that you can be assured of is that legislation and your needs will also change. How often are you reviewing your business assurance planning alongside these changes? I’m sure you’ve heard the horror stories of what happens to businesses and family members when a partner or key individual passes away or becomes disabled and there is a problem with the business assurance plans..

I ensure that you NEVER HAVE TO WORRY about this.

HOW?

I do this by concentrating on the key priorities, understanding you, your family and your business. Only then can we develop/amend a strategy that is right for you, is cost effective and is flexible enough to cater for your growing business and changes in legislation. A simple solution to this problem is a properly structured Buy and Sell Arrangement (supported by a buy and sell agreement) that guarantees that on the disability or death of a business owner, the necessary funds will be available. A buy and sell agreement will ensure a seamless transition of ownership and protect the financial future of the business, while the deceased’s family receives an agreed price for their business interest.

Buy-sell agreements typically fall into one of three categories:
1.     Corporate redemption agreements
2.     Cross-purchase agreements
3.     Hybrid agreements

In a corporate redemption agreement, the corporation is the purchaser of a shareholder’s shares. In a cross-purchase agreement, one or more of the remaining shareholders purchase the selling shareholder’s shares. A hybrid agreement is a combination of a corporate redemption agreement and a cross-purchase agreement, and provides the shareholders with flexibility to determine whom the purchaser will be.

Valuation Provisions of the Buy-Sell Agreement:

Most of the mechanisms for setting prices in buy-sell agreements generally fall into the following categories:

Formula based on the financial statements, such as book value, adjusted book value, a multiple or weighted average of historical earnings, or a combination of such variables
1.     Structured negotiation among the parties
2.     Third-party valuation

This needs to be review on at least biannually basis and the agreed values updated upwards or downward if required.

Estate Tax Considerations:

1.     The offering price was fixed and determinable under the agreement.
2.     The agreement was binding on the parties both during life and after death.
3.     The agreement was entered into for bona fide business reasons.
4.     The agreement was not a substitute for a testamentary disposition

If the lawful agreement is not up to date and correctly structured this could have EXTREMELY devastating effects on the deceased estate – it could be thrown out and the deceased estate will be double taxed (policy proceeds) and there will be no need to sell the shares, meaning an undesired new shareholder can inherit the shares.