NFB Sensible Finance Magazine Issue 27

A FREE publication distributed by NFB Private Wealth Management

NFB

Eastern Cape's Community...

Issue 27 July 2014

PERSONAL FINANCE Magazine

A LETTER TO OUR CLIENTS guiding you to peace of mind

CYCLING INSURANCE Specialist, niche products for the cyclist

DO I REALLY NEED A FINANCIAL ADVISOR? Some reasons why you should consider seeking professional financial advice private wealth management

“The best way of preparing for the future is to take good care of the present, because we know that if the present is made up of the past, then the future will be made up of the present.

Only the present is within our reach. To care for the present is to care for the future.�

- Buddha

private wealth management

Providing quality retirement, investment and risk planning advice since 1985. fortune favours the well-advised contact one of NFB's private wealth managers: East London tel no: (043) 735-2000 or e-mail: info@nfbel.co.za Port Elizabeth tel no: (041) 582-3990 or email: info@nfbpe.co.za Johannesburg tel no: (011) 895-8000 or email: nfb@nfb.co.za Web: www.nfbec.co.za NFB is an authorised Financial Services Provider

editor

ED’SLETTER

Brendan Connellan bconnellan@nfbel.co.za

Contributors Brendan Connellan (NFB East London), Bryce Wild (NFB East London), Shaun Murphy (Klinkradt Murphy), Glacier Research – Glacier by Sanlam, Michelle Wolmarans (NFBIB East London), Zuki Sonjica (NFB East London), Stephen Katzenellenbogen (NFB Gauteng), Lunga Nkonki (NFB East London), Grant Berndt (Abdo & Abdo), Paul Jennings (NFB Gauteng), Debbie Jacobs (IE&T), Travis McClure (NFB East London), Rob McIntyre (NVest Securities)

Advertising

layout and design Jacky Horn TA Willow Design jacky@e-mailer.co.za

Photos used in this magazine - 123rf.com

Robyne Moore rmoore@nvestholdings.co.za

Address East London Office NFB House, 42 Beach Road Nahoon, East London, 5241 Tel: (043) 735-2000 Fax: (043) 735-2001 E-mail: info@nfbel.co.za Port Elizabeth Office Ground Floor, Building 6, Ascot Office Park, Cnr. Ascot and Conyngham Roads, Greenacres, 6045 Tel: (041) 582-3990 Fax: (041) 586-0053 Email: info@nfbpe.co.za Web: www.nfbec.co.za The views expressed in articles by external columnists are the views of the relevant authors and do not necessarily reflect the views of the editor or the NFB Private Wealth Management. ©2014 All Rights Reserved.

No part of this publication may be reproduced in any form or medium without prior written consent from the Editor.

a sensible read

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ecently having had elections, it was tempting to write an opinion piece about how the ANC managed to win by yet another large margin, why the DA continues to struggle to appeal to the average black voter or if Cyril Ramaphosa is likely to rescue our economy and be a future president that will make us proud.

However, after months of electioneering and political talk, I somehow feel that most people share my election fatigue. I would rather make a simple appeal. I'd like to make an appeal to people to remember the positive spirit and optimism that most of us who stayed in this country felt in 1994; remember how everyone stood together beaming as we watched Madiba lift the World Cup or the pride that was felt at the inauguration when our new anthem was sung as Madiba was sworn in?

I think most of us, including those that wore the scars, underestimated the extent of the hurt done pre-1994. I think we overestimated the success of the TRC, which although healed many, only touched the surface of a minority of those affected. Our 1994 optimism wasn't unfounded; we live in a much better country than we did 20 years ago and although we may not currently have a government that is making us particularly proud, we have amazing people in this country who do remarkable things every day. People are so inclined to lay blame, look for fault and see differences that we often fail to look for similarities, share responsibility and take ownership for the change that we would like to see. Take a moment to show a little more respect than you usually would to your waiter, the cashier at the shop, the petrol attendant or your housekeeper.

Make a genuine effort to make everyone you come into contact with feel seen, respected and heard. You will be amazed at what the world starts giving back when you do these little things and how much can be learned from those you thought had little to teach.

Financial security is not only about storing as much wealth as possible for rainy days. It is also about ensuring that those around us are also financially secure. The more people we uplift (in any way that we can), the more likely our security will stay intact.

Brendan Connellan - Editor and Director of NFB Email your full name to info @nfbel.co.za to subscribe to NFB's free economic electronic newsletters. another aspect of our comprehensive service

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SENSIBLE CONTENTS

nfb sensible finance

July 2014

4 CONSOLIDATING FAMILY WEALTH

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An effective way to minimise estate duty and to preserve funds for future generations.

By Bryce Wild, Private Wealth Manager - NFB East London

7 SALARIED TAXPAYERS A brief insight into the basic deduction afforded to a salary earner under the current and future tax consequences. By Shaun Murphy - Klinkradt Murphy

8 SIX KEY STEPS IN CHOOSING A UNIT TRUST FUND Getting you started in order to make the right choice – contributed by Glacier Research, Glacier by Sanlam

9 CYCLING INSURANCE Insurers have responded to the growth in this sport by creating specialist, niche products designed to cater for the specific needs of a cyclist. By Michelle Wolmarans, Manager - NFB Insurance Brokers

10 Pure endowments Exploring their salient features and the scenarios under which they may be the best investment structure to achieve the desired goal . By Zukiswa Sonjica, Financial Paraplanner - NFB East London

12 A LETTER TO OUR CLIENTS Allow us to guide you through a process that will allow you time and peace of mind.

By Stephen Katzenellenbogen, Director/Private Wealth Manager - NFB Gauteng

14 IMPORTANT NEWS FOR NFB PORT ELIZABETH CLIENTS 15 UNDERSTANDING MARKET VOLATILITY

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The importance of patience. By Lunga Nkonki, Financial Paraplanner - NFB East London

16 PROTECTION OF PERSONAL INFORMATION (POPI) Preventing the unauthorized disclosure of personal information. By Grandt Berndt Abdo & Abdo

20 DO I REALLY NEED A FINANCIAL PLANNER? Some reasons why you should consider seeking professional financial advice. By Zukiswa Sonjica, Financial Paraplanner - NFB East London

21 UNPACKING THE CHANGES TO MEDICAL EXPENSES AS ANNOUNCED IN THE 2014 BUDGET

By Paul Jennings, Private Wealth Manager - NFB Gauteng

22 WHAT IS A TESTAMENTARY TRUST? Discussing the features and benefits of a Testamentary Trust. By Debbie Jacobs, Senior Estate Administrator - Independent Executor & Trust

23 Q & A You ask. We answer. Advice column answering your investment, personal finance, life and/or risk insurance questions with Travis McClure, Private Wealth Manager - NFB East London

24 YOU CAN NOW BUY E.TV Rewarding the patient investor. By Rob McIntyre, Director/Stockbroker - NVest Securities

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SENSIBLY EFFECTIVE

Consolidating Family Wealth An effective way to minimise estate duty and to preserve funds for future generations. By Bryce Wild, Private Wealth Manager - NFB East London

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f you have reached the stage of life where you are looking for an effective way to minimise estate duty and to preserve funds for future generations, it may be worth considering transferring discretionary funds into a single premium retirement annuity and immediately retiring from that retirement annuity into a living annuity.

If the funds are invested in a retirement annuity, beneficiaries can be elected to receive benefits on the policyholder's death, but in accordance with the Pensions Fund Act 24 of 1956, the Trustees take into account dependants and decide how the benefit is to be distributed. In order to have more control over who receives the benefit, or a share of the benefit on death, policyholders can retire from the retirement annuity into a living annuity. A living annuity is governed by the Long Term Insurance Act 52 of 1998 and this piece of legislation enables the policyholder to nominate a beneficiary on the policy, who is guaranteed to receive the benefits on the death of the policyholder.

Once the funds have been retired into the living annuity, the policyholder can withdraw an income of between 2.5% and 17.5% pa of the market value of the living annuity, and as from 1 March 2014, they will be able to draw this income free of tax (for amounts received or accrued after this date), up to the amount that was contributed to the retirement annuity. This is because the amount invested into the retirement annuity and retired into the living annuity is seen as a previously disallowed contribution (in accordance with Section 10C of the Income Tax Act 58 of 1962).

If the policyholder passes away, the beneficiary or beneficiaries will have the option of either taking the lump sum or continuing to withdraw an income from the living annuity. If they choose to take the lump sum, it will be paid out to

them free of tax (to the extent of the previously disallowed contribution), but if they choose to continue to withdraw an income from the living annuity, they will be taxed on the income, at their marginal tax rate.

Below are some of the other advantages of having your funds in a living annuity: = Choice: The policyholder will be able to select the underlying investments. = Investment Flexibility: The policyholder will have the option of switching the underlying investments in the living annuity. In terms of Directive 135 (which was issued by the Financial Services Board), living annuities can be transferred to another insurer should the need arise and they may also be converted to conventional life annuities at any stage (free of new commissions). = Income Flexibility: The selected income that is being withdrawn from the living annuity can be changed once a year, on the anniversary date of the policy. = Capital Gains Tax and Dividends Withholding Tax: There is no capital gains tax or dividends withholding tax within a living annuity structure. = There is no estate duty on the capital amount invested into the retirement annuity and subsequently retired into the living annuity (saving estate duty at 20%).

The estate duty savings and other benefits mentioned above can have a material impact on family wealth and when combined with the option of being able to convert to a conventional life annuity at a later stage (should interest rates rise), this investment strategy can go a long way in helping consolidate family wealth that has been built up over the years. However, it must be kept in mind that tax laws can be changed at any time and I would suggest contacting an NFB Private Wealth Manager for guidance in this regard.

NFB's office numbers are: East London 043-7352000 • Port Elizabeth 041-5823990 • Cape Town 021-7027880

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SENSIBLE DEDUCTIONS

SALARIED TAXPAYERS A brief insight into the basic deduction afforded to a salary earner under the current and future tax consequences.

By Shaun Murphy - Klinkradt Murphy

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his edition I decided to turn my attention to the “average Joe� salary earner and provide a brief insight into the basic deduction afforded to a salary earner under the current and future tax consequences.

Basic salary structured packages in today's world encompass basic salaries, travel allowances, motor vehicle fringe benefits and then some form of company and employee contribution to pension, provident and medical aid funds.

It is important to note that there is a difference in the treatment for tax purposes of pension fund and provident fund contributions. At present, pension contributions are deductible at the greater of 7,5% of retirement funding income or R1750.

Retirement Annuity Contributions are deducted at the greater of 15% of non-retirement funding income or R3500 less pension contributions or R1750 per annum. Should a person have a company pension scheme, then basic employment income and bonuses are considered retirement funding, and retirement annuity deductions are limited to 15% of the remaining income items on the IRP5.

Should there not be a company pension scheme then the full income would be considered to be non-retirement funding and your retirement annuity deduction would be based on that. Provident fund contributions do not form part of taxable income and are likewise excluded from the permissible deduction. However, from 1 March 2015 this treatment will be changing as detailed below.

Contributions to retirement funds on behalf of an employee will be treated as a taxable fringe benefit in the hands of the employee as from 1 March 2015. Individuals will from that date be allowed to deduct up to 27.5% of the higher of taxable income or remuneration for contributions to pension, provident and retirement annuity funds with a maximum annual deduction of R350 000.

Contributions above the cap are carried forward for deduction in future tax years.

Travel allowances are rapidly being clamped down on by SARS, and as from 1 March 2010 only detailed log books are accepted for travel deduction purposes. I think it is important at this

stage to highlight what a detailed log book entails.

It is effectively a reconciliation of daily mileage split between business and private travels; private travels include traveling from home to work and back again. Just in case you were wondering how SARS checks up on this, they have been requesting your last vehicle service record or copy of your service log to correspond to the mileage per the log book in the month in which the vehicle was serviced. So please be careful when compiling your log books - they need to be accurate!!! 80% of travel allowances are taxable on a monthly basis.

An important point for the recipient of a motor vehicle fringe benefit (where the employer provides a vehicle for use in terms of the package), is that in certain instances where the tax payer can prove that the vehicle was used predominantly for business purposes with reference to a log book, the commissioner (SARS) may reduce the amount subject to tax in the ratio of business versus private mileage. Not many individuals are aware that if you have the use of a company vehicle solely, that a log book may result in a tax saving.

Monthly medical tax credits for medical aid contributions from 1 March 2014: - R257 for the taxpayer and first dependant, and - R172 for each additional dependant.

Deductions in respect of donations to certain public benefit organizations are limited to 10% of taxable income before deducting medical expenses (excluding retirement fund lump sums).

The excess may be carried forward for deduction in the following year.

In short, there is very little that is afforded to straight salary earners who wish to have elaborate schemes in place to reduce and or postpone the taxation that is levied in terms of the PAYE tables.

Cell phone allowances and entertainment allowances are no longer applicable, and it is far more advisable to have the above on a reimbursive allowance basis, which is generally speaking non-taxable.

Should you have any queries please feel free to email me on shaun@kliwal.co.za

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SENSIBLE STEPS

Six key steps in choosing a unit trust Getting you started in order to make the right choice – contributed by Glacier Research, Glacier by Sanlam

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ith over 1 000 unit trust funds available locally, selecting the right one for you can seem like a daunting exercise.

Here are six steps to get you started.

1. Understand your objectives and risk-profile A financial adviser is invaluable in helping you determine the level of risky assets you should hold.

It is not only the willingness to take on risk that counts, but the ability to do so.

Considerations will include your investment time horizon – are you saving for retirement or for a new car? Do you require a high level of liquidity or an income from your investment? Your individual circumstances will help shape your investment goals and objectives.

2. Research the fund manager A fund may have performed well in the recent past (due to strong market returns), but it's still advisable to look at a fund manager's track record. Who are the fund's key personnel, and what experience and qualifications do they have? It's also useful to note whether they've managed funds through both bull and bear markets.

3. Understand the fund's objectives and the manager's investment philosophy A company's website and fund fact sheets should provide an understanding of what the fund is aiming to achieve, who the key investment personnel are, and what the investment process is.

From an investor's perspective, different philosophies will resonate with different people.

There's no right or wrong philosophy, but it is important to know how the manager you choose will manage risk and protect capital when markets are falling. Is the fund managed by a team or a star manager?

4. Understand the fund categories The Association for Savings & Investment SA (ASISA) has made risk-profiled investing easier by introducing new fund categories. Essentially this

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removes the tactical asset-allocation decision. If you understand your risk-profile, you can select from one of the new multi-asset categories which cater to investment appetites from conservative through to aggressive. The more aggressive the fund, the higher the level of risky assets it will hold.

If you want exposure to a specific sector, e.g. financial or retail stocks, you'll need to look at specialist funds.

You also have the option of selecting a multimanager or a single-manager. If you select a single-manager fund, make sure you understand the philosophy and that the objectives of the fund are in alignment with your own personal investment objectives.

Alternatively, a multi-manager fund will combine a number of different funds, giving you diversity without having to select the funds yourself.

5. Understand the costs The fund fact sheet will show the total expense ratio (TER) of the fund. Fees can have a considerable effect on your eventual investment return, so make sure you are paying a fee that's reasonable compared to other funds in the same category.

6. Monitor the fund Ideally, a medium- to long-term investment should be left to grow and short-term volatility should be ignored. However, you should take note of changes that may affect your investment, such as fund manager changes or fee changes.

Also, when circumstances in your life change, always make sure that your goals, objectives, riskprofile and investment strategy are in alignment.

Investors are encouraged to consult with a qualified financial intermediary to ensure peace of mind.

SENSIBLE INSURANCE

Cycling Insurance Insurers have responded to the growth in this sport by creating specialist, niche products designed to cater for the specific needs of a cyclist. By Michelle Wolmarans, Manager - NFB Insurance Brokers

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ycling as a sport has seen phenomenal growth in South Africa. The Argus Cycle Tour is the largest cycle tour in the world with 35 000 participants. Events such as the Cape Epic and the 94.7 Cycle challenge are growing in popularity.

The cost of replacing a bicycle and associated equipment such as heart rate monitors, helmet, GPS's and protective clothing that is damaged can often exceed R100 000.

It is therefore essential to ensure that these items are insured correctly. In respect of your traditional insurance policy bicycles and the associated gear will be covered under your Household contents section only while they are within the four walls of your private residence. If the items are stored in a garage or outbuilding theft cover will be restricted to forcible and violent entry.

However, as soon as the bicycle is removed from your residence it is no longer covered by your Household contents insurance.

To ensure that your bicycle is covered once it leaves your residence it would be necessary to specify the bicycle on your policy. Most policy wordings exclude bicycles under the General All Risks section, so do not fall into the trap of thinking that you will be able to claim for a damaged or stolen bicycle because you have General All Risks cover. The General All Risks cover will provide compensation for cycling gear that is designed to be worn or carried on a person such as cycling clothing, sunglasses and helmet. If you have expensive gear it is important to ensure that your General All Risks sum insured is sufficient as insurers apply a limit payable per item. The limit per item is a percentage of your sum insured.

Insurers have responded to the growth in this sport by creating specialist, niche products designed to cater for the specific needs of a cyclist. These products provide All Risks cover for bicycles, equipment and accessories based on new replacement value. The policy extends to provide cover whilst competing in international events, national events, provincial events or any other sanctioned event including club rides.

Traditional policies often exclude cover if the insured is participating in a race. Legal Liability cover is included which ensures that if you accidentally damage property or cause death or bodily injury to a third party the policy will compensate the aggrieved party. A practical example of this would be hitting a pedestrian while cycling or scraping a motor vehicle with your bike and damaging the paint work. Personal Accident cover in respect of Death, Permanent Disability and Medical Expenses can be included on the policy.

Certain products also include a Roadside assistance program designed specifically for cyclists out on the road.

The niche insurers have established excellent relationships with reputable suppliers, and staff are often cyclists themselves, so they understand the unique needs of a cyclist. A practical example of this is the claims service offered by Cyclesure (a product underwritten by Hollard Insurance Company) during the Argus cycle tour this year.

Imagine the disappointment of travelling all the way to Cape Town and not being able to participate in the race as your bicycle had been damaged in transit. If the damaged bicycle was insured through Cyclesure, the insured could take it to an approved bicycle supplier and have it repaired immediately, or replaced if it could not be repaired, so that the insured could participate in the race.

If you are a cycling fanatic or a weekend recreational cyclist please do not hesitate to contact our marketer, Debbie Bieske on 043-735 2460, who will obtain quotes on your behalf to ensure that your cycling equipment is correctly insured. Don't forget to diarise the NFB Border 1000 Cycle Tour which takes place on the 16th November this year – this is definitely an event not to be missed!

Port Elizabeth clients can call 041-582 3990 and you will be re-directed accordingly

insurance brokers (border)(pty)ltd.

SENSIBLE GOAL

Pure Endowments Exploring their salient features and the scenarios under which they may be the best investment structure to achieve the desired goal . By Zukiswa Sonjica, Financial Paraplanner - NFB East London

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ure endowment products may not be popular investment structures, but they have a very important place in the market.

We will explore their salient features and the scenarios under which they may be the best investment structure to achieve the desired goal.

Currently, endowment products in the market are essentially pure investment policies, and are no longer linked to life cover and disability benefits.

Pure endowments can invest in underlying assets such as local and offshore unit trust funds, as well as direct shares. Unlike endowments with risk benefits, the entire premium paid towards the investment, either in the form of a lump sum or premium payments, is fully invested, after administration costs and fees are deducted. The fees and costs have also become more transparent in pure endowments than was previously the case with the risk linked endowment products.

Endowments have a five year minimum investment period. This restriction comes in handy for individuals needing to save for long term goals, but who may feel tempted by the easy access and liquidity of a normal savings account or unit trust investment. The restriction period on the endowment policy encourages a commitment to the financial goal, and only after the restricted period has ended, is the policyholder able to take action on whether to withdraw the funds or continue with the investment. It is possible to continue with the investment until the desired maturity date, if greater than the five years.

Endowments are taxed in the hands of the life insurance company using the four funds approach.

For individuals, the tax rate is fixed at 30%.

Endowments are therefore tax efficient investments for high income earners who are taxed up to a rate of 40%. At maturity, proceeds of the endowment are paid free of tax.

For estate planning purposes, beneficiaries may be nominated by the owner of the endowment policy to make the funds available to the beneficiary at the death of the policyholder.

The proceeds will be paid tax free to the beneficiary and exempt from executor's fees. The ability to nominate beneficiaries is an added advantage for offshore endowments, as the costly and drawn out process of wrapping up offshore estates is avoided by passing the policy onto the beneficiary at the death of the policyholder.

Endowments can also be ceded for the benefit of a third person, for example a child dependent, or an employee in a business setting to reward a key employee for their commitment over a long period of time.

Endowments are also accepted by creditors as security to obtain a loan. If one is uninsurable or unable to get affordable life cover to secure a loan, an endowment can be used as collateral for the required loan.

Endowments are more than just investment vehicles due to the added features when compared to unit trusts and other voluntary investments. As highlighted above, they offer the added features of tax efficiency, executor's fee savings, deterring unwarranted premature withdrawal by the policyholder, and can be used as collateral in various circumstances.

For professional investment advice on how to use an endowment product in your portfolio, please contact one of our financial advisors on one of the following numbers: East London 043-7352000 • Port Elizabeth 041-5823990 • Cape Town 021-7027880

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A Letter to Our Clients Peter Armitage, from Anchor Capital, recently penned an article titled “A Letter to My Daughter�. The article discussed the financial, social and emotional tribulations a parent has when bringing up a child. With my son turning 1 in April, Peter's article resonated with me and got me thinking about my family's circumstances. This, in turn, led me to think about NFB's clients. I am going to cover some of Peter's thoughts and will expand this to include areas we should all pay attention to as they cover areas in our families we can control, namely, the financial planning aspects.

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here are a number of concerns I have for my son over the next 25 years or so, and probably his whole life, which are influenced by my career and my own upbringing. Will I be able to afford the best education? Will he be popular? Will he like soccer? Can we help buy him an apartment when he moves out of home (age 50 if his Mom has her say)? It goes without saying that he will also have a unique set of worries while he is growing up that are very different from mine.

Before moving on to the practicalities of planning something more esoteric is the spending of two finite commodities: your time and your wealth. A concern I have is that I will miss a lot of my son's growing up as I'm too busy at the office trying to provide for my family. It is very difficult to put a price on time, but what is certain is that its worth goes beyond traditional currency. My decision is to do my best to make sure I get to some of his soccer games, school parties and concerts.

Getting the right allocation between time and money is crucial as this in turn can provide its own rewards. Whilst we are strong proponents for saving it is also important to allocate money to things like holidays and family gatherings. We work very hard and, where possible, we need to

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enjoy the fruit of our labour - within reason.

What can you influence?

A good starting point is to, very early on in your childrens' lives, put money away every month which can be

used for education, or alternatively, something less thought of, due to the long time horizon, a deposit on a home. If you can save R4 000 per month and this grows at 12% per annum for 25 years the money will grow to R7.6m (or R1.7m in today's terms). Saving for education, or any other goal such as retirement, does not have to be done through a specific product. The product can be chosen to suit your circumstances. It is disciplined and continuous savings that are important. As individuals we are allowed to make tax free donations of up to R100 000 per annum; or R200 000 per married couple. Regular use of the donation, via a lump sum or recurring payment, either to kids or a Trust is a great way to set aside assets for current and future generations and also moves those assets out of your Estate. Please remember that this type of donation is in addition to donations to public benefit organisations which are tax exempt.

In families where there is an insufficient capital base or income stream to support dependants in the event that the bread winner dies, life cover is an important consideration. With life cover you pay a relatively small premium per month which covers you in the event of your death for a pre-specified lump sum. This lump sum can then be invested and can provide beneficiaries with a monthly income.

Beyond that, life cover can fill a few other voids: = You may have sufficient capital, but it may take a while for it be realised when you die. Life cover can provide liquidity and cash flow in an Estate as it should pay out more quickly to the nominated beneficiary/ies; = Pay off any debt; and = Fund death costs (Estate Duty, Capital Gains Tax, Executor Fees) so assets do not need to be sold off to cover these.

While we are on the subject of death, it is important to, firstly, ensure that you have a will and, secondly, that it is valid and current. Your will should include things like the provision for simultaneous death of parents and guardianship where minors are involved. Consideration also needs to be given to the formation of a Testamentary Trust to hold your assets.

Within a portfolio certain assets may be contractual and others are not. Where an asset is contractual, such as an endowment, the nominated beneficiary will receive the asset irrelevant of the will. Shares, for example, do not have a contractual beneficiary and will be dealt with as part of your will.

The crux of this article is to assist our clients in obtaining a degree of peace of mind around the financial aspects of their family's affairs.

The formation of a Trust, under the correct circumstances, be it Testamentary or Inter-Vivos, can help direct the management of your affairs during and after your life. A Trust is administered based on the content of the Trust deed, or will, which is in turn affected by the Trustees. You can be involved in the drafting of the Trust deed which will determine how money will be invested, who will receive the money and under what circumstances.

The advantages of a trust can be offset by a number of disadvantages so careful consideration needs to be applied before going down this path.

What can we influence?

As financial advisors our input needs to go beyond that of purely investing your funds or assisting with implementing a risk policy. It is critical that your goals, ambitions, fears and anxieties are all properly reflected through the construction of your portfolio. NFB will enjoy its 30th birthday next year and this wealth of experience positions our business and its advisors well to assist you, your family, your business and your Trust to create a considered plan for you. Furthermore, NFB's annual review process is a good opportunity to make sure the constituents of your plan remain relevant.

I believe I have the above bases considered for my family. Please chat to your NFB financial advisor who will be able to guide you through a process that will allow you time and peace of mind.

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SENSIBLE NEWS

THE SALE OF IMPORTANT NEWS FOR PROPERTY NFB PORT ELIZABETH CLIENTS AND THE CPA

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s many of NFB's PE-based clients will already be aware, NFB Port Elizabeth (NFB PE) has recently reached an agreement with Alex Grunewald and Associates, which will shortly be incorporated into NFB PE. This is a very exciting development for us as Alex Grunewald is a highly respected financial advisor in Port Elizabeth and brings to us a wealth of experience as well as a well established client-base.

The addition of Alex and his staff means that we will soon have additional staff members available to assist our PE-based clients to ensure that they receive nothing short of excellent service and our best attention at all times when making contact with our office at Ascot Office Park in Conyngham Road.

We are also proud to announce that we will now also be able to offer consulting in respect of employee benefit schemes as an additional service to owners, directors and managers of businesses directly from our Port Elizabeth office.

This service was previously only available through our East London office.

Alex Grunewald - NFB PE’s Managing Director and Private Wealth Manager.

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The 13th June 2014 will, sadly, see the departure of Gordon Brown as he and his family emigrate to Germany. Although we will most certainly miss Gordon, he has served us well and ensured that NFB's client and asset management processes have been firmly entrenched for our PEbased clients.

We recognize that it is unsettling for clients to be introduced to a new financial advisor with whom they may be unfamiliar, however, please rest assured that NFB ensures that the underlying investments of our clients are always in good hands and managed according to our house-views and in line with our standard practices and procedures, irrespective of the financial advisor with whom the client has the main relationship.

We look forward to introducing our newest staff members soon and Alex Grunewald will make contact with our PE-based clients as and when portfolio reviews comes due. Please feel free to contact our office at any time should you need any assistance or advice in the interim on 041 - 582 3990.

Faithfully at her post Receptionist, Jenny Walton and Trainee Financial Paraplanner, Xolisa Funani.

SENSIBLY PATIENT

UNDERSTANDING MARKET VOLATILITY The importance of patience. By Lunga Nkonki, Financial Paraplanner - NFB East London

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chieving a level of long term capital growth over a sustained period of time, is a complicated part of any form of long term investment strategy. Chief among many problems faced by the individual investor is one's own emotional behaviour and responses to fluctuating market conditions. Otherwise put – one's reaction to market volatility.

What is volatility?

Simply defined, volatility is the extent to which an asset's price moves up and down around an average or benchmark index. The order and length of these fluctuations is largely uncertain, and so making investment decisions based on short term market movements can present significant downside risk to the individual investor. The first most common point of call for nervous investors worried about downside market risk, is to switch or “sell out” of the underlying fund or stock most affected by the negative downside over that particular period in time. History has shown that investors are more likely to buy a fund or stock after a period of great performance, and will often sell after a period of significant losses or underperformance. This, needless to say, is hugely counterproductive, but can be explained to an extent by the following individual investment behavioural decisions: l Investor confidence: the investor believing they have more ability to make good investment decisions than they really possess. l Proneness to sentiment: following the herd or anchoring too much off recent market events. l Inherent loss aversion: preference given to avoiding losses as opposed to making any capital gains. And lastly, l Myopia: framing the buy/sell decision too narrowly.

The good news, however, is that from volatility, a picture of opportunity can be presented to the savvy investor. Expecting volatility is different from

being able to predict and profit from fluctuating markets. It becomes increasingly important for investors to invest according to their own set time horizons and not be swayed by behavioural biases.

The market will over a period of time, reward investors for initial investment risk taken on. It is said that a high equity portfolio is likely to earn 1.5% per year more than a medium equity portfolio over the long term, or 3% per year more than a low equity investment over an investment period of five years or more.

The compound impact of these higher returns rewarded to investors through patience, can be largely significant over the longer term. The longer your time horizon for investment of your retirement or personal savings capital, the higher your allocation towards higher risk equities should be – the asset class with the highest expected long term returns, but with higher variability in gains or losses over the shorter term.

It is therefore important for investors to have a sensible game plan and a reasonable expectation of volatility in order to maximise longer term investment returns. The plan must include protection from the knowledge gap; with which comes the vulnerability to succumb to underperforming fund managers or being incorrectly risk profiled in the implemented strategy for investment. This gap can be filled by the presence of a skilled financial advisor. It then becomes important to stick to the plan implemented by your trusted advisor, have it regularly reviewed and don't chase market performance. After all, “half of all coin-flippers will win their first toss, none of those winners has an expectation of profit if he continues to play the game.” The same holds true for long term investing.

Sway away from the noise, remain patient in times of volatility and with an optimal investment strategy; position yourself carefully to profit from short term ups and downs.

For assistance in reviewing your portfolio, please contact one of our financial advisors on the following numbers: East London 043-7352000 • Port Elizabeth 041-5823990 • Cape Town 021-7027880 sensible finance july14

15

SENSIBLE PROTECTION

PROTECTION OF PERSONAL INFORMATION (POPI) Preventing the unauthorized disclosure of personal information.

By Grandt Berndt - Abdo & Abdo

T

he Protection of Personal Information Act, commonly known as POPI, was promulgated on 26 November 2013 and will come into our law at an as yet undetermined future date. The purpose is to prevent the unauthorized disclosure of personal information. It also means that an organization can only capture, use and store ones personal information with the person's consent. Personal information is given a broad definition to include things like one's name, identity number, address, religion, medical, educational and financial history.

POPI states that one is to be notified when personal information is processed and when this personal information has been compromised by unauthorized individuals. One has the right to a copy of the personal record held by a party, but the holder can charge a reasonable fee for making the record available.

Organizations that ask for information now have the duty to make sure that it is kept up to date and confidential. The organization must secure the information from the time they receive it until they no longer need this information. The destroying of this information must be done in a safe manner as prescribed by industry standards.

Organizations that collect information and process it must do so in an accountable, lawful fashion that has a minimal intrusion of an individual's rights. It can only be done with the individual's consent and with information gathered from one personally. The proposed Act does not, however, apply retrospectively, so there is a concern that just before POPI comes into law, there will be a rush for personal information to be updated on marketing databases for those

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irritating marketing phone calls.

Once the Act comes into force, organizations will have approximately 1 year to comply with the Act. If an organization already has a relationship with a customer, it must make sure that the customer knows why it needs the personal information, what the personal information will be used for and the customer will have to consent to the organization having this information. If there is no existing relationship, as is the case with direct marketing, the organization will have the opportunity to ask whether the individual would like to opt in or out, and must respect the customer's wishes.

The question then is: what if the organization does not comply? An information regulator is to be appointed and one can then report the complaint.

Non-compliance can result in a fine not exceeding R10 million or up to 10 years in prison. However, the internet also allows access to data and for data to be transferred from one country to another, all of which countries have different privacy laws, making the policing of laws, where there is no uniformity, very difficult. So will we see an immediate reduction in marketing once POPI comes into law? This is unlikely, due to the different privacy laws in different countries meaning spam email may well continue. However, from the telemarketing point of view, there may well be some relief. This relief probably will take some time to be realized as once the Act comes into law, organizations have a year to comply and even this one year period may be extended by government.

The office of the Regulator will need to come into existence and only time will tell on its efficiency in dealing with complaints.

“Managing success into the future” Our services include: Accounting • Auditing • Taxation Planning Estate Planning • All Statutory Registration • Business Structuring Concessions • Due Diligence • Business Succession Planning

Contact us on 043 726 9555 for all your queries. partners: Gary Klinkradt ca (sa) and Shaun murphy CA (SA)

DO I REALLY NEED A

FINANCIAL PLANNER?

S

eeking professional advice is something we do easily when it comes to our health, building our homes and even getting a haircut. When it comes to money matters, however, many of us often forge ahead with our own strategies, which often lead to delays in reaching the intended financial goals, and the mistakes along the way usually cost us dearly.

Only after our own methods fail do we consider consulting a financial advisor to help steer us on the correct and shorter path towards our financial goals. Here are some reasons why even the most disciplined saver and investor should consider seeking professional financial advice sooner rather than later: = Human behaviour is an interesting element that inevitably influences the decisions we make.

The emotions money evokes within us impact greatly on the investments we make and the returns we are able to enjoy from these investments. The subject of behavioural finance has come to show that people often act irrationally when it comes to their financial decisions due to emotions of greed and fear which at times compel investors to act against their best interests. A trained and experienced financial advisor becomes essential in neutralising these emotions by providing facts and objective guidance to guard against human behaviour interfering with investment goals. = Too much information: an informed investor armed with the latest issues of investment magazines and market updates on his cellphone may think he is in control and has the advantage to act swiftly on market

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updates impacting on the performance of his investments. Reacting to short term market glitches is often what derails many individuals off the path towards their financial goals.

Correct investment choice applied consistently over the long term will serve the goal of having enough funds for your children's education far better than keeping up with market announcements. In this instance, a financial advisor can help identify the appropriate investment structure; align the risk of the structure to your tolerance for risk; manage the investment over time; and take note to act on only fundamental market changes. Applying this approach brings about far less anxiety and less effort is exerted towards the path to investment goals. = Over confidence: with the benefit of hindsight, it comes to mind that most world market crashes, are closely linked to key market players being overconfident about their ability to continue making gains, and acting boldly by taking on more and more risk. These highly educated and highly qualified pioneers in their field are not the only people prone to this trait.

Many individuals on a winning streak at the casino often show similar behaviour before losing it all to the house. It takes a skilled and level-headed individual to apply rational restraint and make decisions in the investor's best interest.

Financial planners should be seen as professionals that we can hire to walk us through the discipline of personal financial management. Their services should not only be considered when needing to address retirement savings shortfalls, and structuring up tax efficient estate planning solutions.

Financial advisors can add great value by merely protecting our most basic saving and investment plan from ourselves.

Should you wish to avail yourself of the services of one of our financial advisors, please call one of the NFB offices in East London, Port Elizabeth, or Cape Town.

UNPACKING THE CHANGES TO

MEDICAL EXPENSES AS ANNOUNCED IN THE 2014 BUDGET

ver the past two years there has been a progressive change from a 'medical expense deduction' to a 'tax credit' system used when calculating an individual's income tax returns. The implication of this change is that a medical deduction lowers an individual's taxable income while a tax credit reduces an individual's tax liability. The effect of this change is that a medical tax credit allows all taxpayers the same benefit, whereas a medical expense deduction is more beneficial to a taxpayer with a higher marginal tax rate.

In considering these changes it is noted that individual taxpayers are categorized into two categories for the purposes of calculating medical tax credits: = Taxpayers below 65 years of age; = Taxpayers of 65 years of age and above.

These medical tax credits fall into two categories, namely the contributions to medical aid schemes and additional medical expenses (“out-of-pocket” medical expenses).

The tax credits on medical fund contributions was introduced from March 2012 with application to taxpayers below 65 years of age, but it has now been extended to all individual tax payers who contribute to a medical aid.

O

Additional medical or 'out of pocket' expenses: Up until the end of the 2014 tax year taxpayers were entitled to a deduction for 'out of pocket' medical expenses. For taxpayers under 65 years of age this amount claimed is limited to the extent that it exceeds 7.5% of taxable income before this deduction. For taxpayers, 65 years and older, medical aid contributions and other qualifying medical expenses or out of pocket expenses could be claimed as a deduction against taxable income.

For the 2015 tax year: = Taxpayers of 65 years of age and older will be on

the 'tax credit' system for medical aid contributions and 'out of pocket' expenses. These are calculated using the following formula: {[Medical aid contributions – (medical scheme fees tax credit X 3)] + other qualifying medical expenses},

dividend by a factor of 3.

This means the medical tax credit for 12 months will be multiplied by three and subtracted from the total medical aid contributions for the year. All qualifying medical expenses will be added to this amount. This total will be multiplied by 33.3% to derive the medical expenses credit.

The effect is that taxpayers who earn more than about R400 000 per year will pay more tax.

For example, assume the following: " Medical scheme contributions: R67 891 for the year; " Non-recovered medical expenses: R20 000; " Taxable income: between R528 011 and R673 100 a year and " Marginal tax rate: 38%.

The tax saving on the 'medical expenses deduction' system would have been R33 398 and on the 'tax credit' system this tax saving would be R29 274, notably this taxpayer is R4 124 worse off. = Tax payers below 65 years of age will continue to be

on the 'tax credit' system for medical aid contributions, but 'out of pocket' expenses are calculated by the following revised formula: {[Medical aid contributions – (medical scheme fees tax credit X 4)] + other qualifying medical expenses}, divided by a factor of 4.

This means a tax credit of 25% of the total medical scheme contributions that exceed four times the tax credit and unrecovered expenses, but only to the extent that the combined total of these amounts exceeds 7.5% of your taxable income.

The effect on a higher taxpayer is shown in the following example: " Taxable income: R550 000; " Non recovered medical expenses: R20 000; " Medical scheme contributions: R91 642 for the year (family of 4); " Marginal tax rate: 38% and " Tax credit for contributions: R10 296.

The tax saving if the 'medical expenses deduction' system had remained in place is R11 133 and with the 'tax credit' system of excess contributions and expenses this savings is R7 325.50 This shows that for a higher tax payer, as in this example, that on the new 'tax credit' system, R3 807.50 more in tax would be payable.

For further clarification on how the medical tax credits will affect you, please contact an NFB Financial Advisor at one of our offices in East London, Port Elizabeth or Cape Town. sensible finance july14

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SENSIBLE ADVICE

What is a Testamentary Trust?

Discussing the features and benefits of a Testamentary Trust. By Debbie Jacobs, Senior Estate Administrator Independent Executor & Trust =

= =

Testamentary Trusts are created in a person's Will and only come into effect on the death of that person.

The Will then operates as the Trust Deed, spelling out the terms of the Trust.

These terms would state who benefits, and under what circumstances, beneficiaries are to benefit and when the Trust is to Terminate.

=

Who should I appoint as Trustee on my Testamentary Trust? = = =

When would I use a Testamentary Trust?

=

=

=

=

= = =

=

= = =

For minor Children (under the age of 18), to provide for education, university maintenance etc.

Or of age, but where the child lacks the necessary maturity or experience to take full responsibility of a sizeable inheritance at the age of 18.

Children, or even adult children, who are spendthrifts.

Addicted or troubled children who require possible monthly payments.

Disabled/physical or mental impediments – which renders the beneficiary unable to manage their own affairs. A Trust can either provide partially or fully for the individuals maintenance during their lifetime.

Second marriages, to ensure your spouse has income and in need, capital, and on her death or remarriage the capital and any undistributed income to your children/grandchildren from your first marriage.

Elderly parents to be provided for in the case of your untimely death.

Charities Divorce - to maintain monthly divorce obligations.

Insolvent children, as protection against their creditors (careful of this wording, speak to your estate planner).

=

A beneficiary may be a Trustee Family member (spouse, children, Aunt, Uncle) Financial advisor Trust Company Lawyer An Executor may also be a Trustee

A Trustee can be anyone who is trustworthy, and who is willing to act in the best interests of those appointed as beneficiaries under your Trust; these Trustees are appointed in your Will.

Many ask: what is the difference between an Inter-Vivos Trust and a Testamentary Trust.

Inter-Vivos Trust - is created during your lifetime.

Testamentary Trust - created in terms of your Will and takes effect after your death.

Did you know? = = =

More than one Trust can be created in terms of your Will.

Different Trustees may be appointed for each Trust created.

If you have not created a Testamentary Trust in terms of your Will, a minor beneficiary's monies will be paid to the Guardian's Fund, which is a Government Department, until they attain the age of 18; this option would not be a pleasant experience for the guardian trying to receive maintenance payments.

At Independent Executor & Trust we are committed to personalized service and individual attention. With combined experience of 65 years, we specialize in the Drafting of Wills, Administration of Estates & Testamentary Trusts.

49 Beach Road, Nahoon, East London, 5241 | PO Box 8081, Nahoon, 5210 Telephone: (043) 735 4633 Fax: 086 693 3356 / (043) 735 3942 | e-mail: info@iet.co.za

Port Elizabeth clients can call 041-582 3990 and you will be re-directed accordingly

SENSIBLE Q&A

Travis McClure

“Sensible Finance - Questions and Answers” is an advice column that will allow our readers the opportunity to write to a professional and experienced financial advisor for advice regarding investments, personal finance, life and/or risk cover. Travis McClure will be answering any questions that you may have.

Q:

How does one construct a portfolio? There are over a 1000 unit trust portfolios to choose from, where does one start?

A: You start with the basics: risk profile, time horizon, investment objectives. Once you have established your needs you can then start to breakdown the choices on offer. Seeing that we are in the middle of the Soccer World Cup it might be easier if we relate this to the various positions and styles of play.

When deciding on your portfolio you need to establish if you are going to be playing the game defensively or looking to attack! In football, the game is won by those that score the most goals. With investing, those who are able to take higher risks by investing in equities over the longer term will generally win the game against inflation. Having said that, the game is also not lost by defending your own goal. For most clients a balance between the two is required and depending on risk profile, investment objectives and time horizon will determine how much of your money is put into attack and how much is put into defence. A portfolio should be diversified to give you both options in attack and defence.

So let's breakdown the choices or positions available: if we start at the back we need a decent Goalie. This is normally your Money Market or Income Funds. These consist mainly of bank deposits and bond portfolios that offer security to your capital and give some certainty to returns. These funds will certainly protect your goal, but will not be scoring goals for you to win the match. They generally provide a steady stream of income with very little capital growth and will aim to achieve a return of 1% to 2% above inflation. In central defence you will find the Cautious Funds. These multiasset portfolios are suited for the more risk averse investor who is looking to achieve above inflation returns of 3% to 4%, but with some capital protection over a rolling 12 month period. These funds will generally have a maximum exposure to equities of around 30% to 40% with the ability to also invest offshore up to a maximum of 25%. Your outside fullbacks would consist of funds that have defensive properties, but can also attack up the flanks. These may include property funds offering good, growing income yields, but also the ability to provide some capital growth over time.

Your midfielders are your hard workers in the portfolio. They need to be all-rounders who defend as well as attack and are seen as the link between defence and attack. These will generally be your Balanced Medium Equity and Balanced High Equity Funds. These portfolios are Regulation 28 compliant

(Pension Fund approved) and will invest a maximum into equities of up to 60% to 80%, the balance of the portfolio being a mix of assets from offshore to property to money market. These funds have risk ratings of between 4/10 and 6/10. These funds can certainly provide you with the growth required and do have some defensive qualities.

They are not without risk, however, and can be caught too high up the field in the shorter term. Over the long term, however, their balanced approach should provide you with steady returns well above inflation.

The Strikers in any team, generally, take all the glory by scoring the goals, but can also be seen as the villains when goals and chances are missed. These are your Equity Funds and are the most risky of all the players on the team. Over time these funds should provide you with the highest growth rates. Depending on your appetite for risk and your time horizon this will determine how much you would want to put into attack. Over a longer period the greater allocation to equities will yield you the best results, but in the shorter term if you have too many strikers it may leave your defence vulnerable. As long as you can handle conceding a few goals knowing that you will score more than the opponents, then that is ok.

Finally, on the outside Wings you may want to incorporate Offshore Funds or Flexible Funds. These are also higher risk portfolios that provide support to the attack from the sides. A small allocation to these players can often enhance the returns on the portfolio without exposing too much of the defence.

Your Financial Advisor is your coach. His or her role is to identify the type of game plan required and set the team or portfolio up accordingly. The playing conditions such as the Market or Economy may dictate as to what asset allocation or team set up is best suited at the time.

The playing field is wide, but this can be narrowed down by choosing the right fund managers who can provide the correct style of play for you, the client. You also have to be careful not to be influenced by the noise of the Vuvuzelas and emotional hype created by the crowd.

Stick to the game plan and back the players on the field to do their jobs.

There is a lot of information out there and it can be confusing. Speaking to your Financial Advisor and establishing your game plan before kick-off is the first step.

It's a Beautiful game if played correctly!!

P.S. My money's on the Dutch – Hup Holland!!

Please address all Questions to: Travis McClure NFB Sensible Finance Q&A, Box 8132, Nahoon, 5210 or email: info@nfbel.co.za

sensible finance july14

23

SENSIBLE ADVICE

You can now buy e.tv Rewarding the patient investor. By Rob McIntyre, Director/Stockbroker - NVest Securities

I

n this article, I take a break from discussing the core holdings in our general equity portfolios.

Many older readers will remember the share offering that MNet had many years ago. Those who stuck to this investment with the many corporate changes that took place would have done handsomely indeed.

There are very few media companies that are listed on the JSE today. However, with the recent reverse listing of Sabido Investments into the Seardel Investment vehicle, investors now have the opportunity to invest into a practically pure play media group.

Seardel was originally the textile manufacturing company that was controlled by the eponymous family. However, Hosken Consolidated Investments (HCI) took control of the group a few years ago and has now disposed of the apparel manufacturing business to SACTWU, the textile union, no less! What is left behind comprises a focused property owning business and a number of consumer and industrial brands.

In April 2014, HCI completed the carve out of Sabido Investments into Seardel by settling the funding. As a result, Seardel now owns 63.9% of Sabido Investments, while Remgro is the other significant shareholder. Sabido Investments is the controlling vehicle that houses e.tv, eSat.tv, yfm and Sasani Studios amongst others. This was achieved through a rights issue at R1.60 per share, which cleared the group's debt arising from this acquisition and left Seardel's net asset value being over 70% exposed directly to Sabido Investments.

This means that Seardel is now a play on e.tv. e.tv is the fifth terrestrial television channel in South Africa, following three channels operated by the state-owned South African Broadcasting Corporation (SABC 1, SABC 2 and SABC 3) and the privately owned subscription-funded M-Net, operated by Multichoice. It is the first privately owned, but free-to-air television station in the country and was launched in 1998. Whilst e.tv is currently highly profitable and cash generative, we believe that its best years lie ahead. Sabido Investments has recently undergone significant expansion. The investments into this expansion consisted primarily of investments into Platco Digital's free-to-view Openview HD platform, e.tv's

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new multi-channel offering and the online news business, enca.com. e.tv is positioning itself for the migration to digital TV in South Africa by leveraging off its free TV model to a pay TV model that will offer an alternative to Multichoice. While Multichoice will remain dominant in South Africa, it is a fact that many hundreds of thousands of households simply cannot afford to subscribe to a Multichoice offering and would need to use the various e.tv offerings, as an alternative to the State propaganda machine.

What I like about e.tv is that two of South Africa's most astute investment houses, Remgro (of the Rupert family) and HCI are effective partners in building this media house. They have over a 15 year track record in growing e.tv and it appears that e.tv has been making serious investments over the past two years and is now ready for the next stage of its growth.

Seardel trades under its ordinary shares (currently R2.10) and its non-voting shares (currently R1.94) on the JSE (prices correct at 2 June). This gives the group a market capitalisation of R8.5bn.

We recommend entry via the N shares (non-voting) given the greater liquidity and discount.

Seardel recently released its results for the year ended 31 March, but these are of limited interest given the large scale restructuring and the capital raise after year end. We estimate that Seardel is likely trading on a forward, underlying pro-forma (pre-investment set out above) PE of about 10 to 12 and that it is likely that it will commence dividend payments in the year ahead, given that one of the motivations of the restructure was to allow the union investor (BEE) closer access to e.tv's cash flow than was the case via HCI before the role up into Seardel.

We would view any investment into Seardel as non-core to our general equity portfolios and would include an exposure of about 2.5% to 5%, depending on the specific circumstances of the managed portfolio. It is our view that such an investment would reward a patient investor.

The Eastern Cape's first home-grown

STOCK BROKERAGE NVest Securities (Pty) Ltd NFB House, 42 Beach Road, Nahoon East London 5241 PO Box 8041, Nahoon 5210 Tel: (043) 735-1270, Fax: (043) 735-1337 Email: info@nvestel.co.za

www.nvestsecurities.co.za Port Elizabeth clients can call 041-582 3990 and you will be re-directed accordingly

NVest Securities is an Authorised Financial Services Provider

NFB have a STRONG, REPUTABLE TEAM OF ADVISORS with a WEALTH OF EXPERIENCE between them: Anthony Godwin RFP™ І MIFM – Managing Director, 25 years experience;

Alex Grunewald CFP® І PGDFP – Managing Director and Private Wealth Manager, 14 years experience;

Gavin Ramsay B.Com MIFM - Executive Director and Private Wealth Manager, 20 years experience;

® Mikayla Collins CFP І B.Com (Hons), PGDFP, CFA Level 1 - Private Wealth Manager, 2 years experience;

Andrew Kent MIFM - Executive Director and Share Portfolio Manager, 20 years experience; Walter Lowrie - Private Wealth Manager, 28 years experience; Robert Masters AFP™ | MIFM - Private Wealth Manager, 28 years experience; Bryan Lones AFP™ І PGDFP, MIFM - Private Wealth Manager, 22 years experience; ® Travis McClure CFP І B.Com, PGDFP, MIFM – Executive Director and Private Wealth Manager, 15 years experience; ® Marc Schroeder CFP І B.Com (Hons), PGDFP, MIFM - Private Wealth Manager, 9 years experience; ® Phillip Bartlett CFP І BA LLB, PGDFP, MIFM Executive Director and Private Wealth Manager, 11 years experience;

® Glen Wattrus CFP І B.Juris, LLB, PGDFP – Private Wealth Manager, 16 years experience; ® Julie McDonald CFP І B.Com, PGDFP – Financial Advisor (Risk Assurance Specialist), 3 years experience;

Bryce Wild B.Com (Hons) – Private Wealth Manager, 1 yr experience Leona Trollip RFP™ І Divisional Manager – Employee Benefits, 37 years experience; Leonie Schoeman RFP™ І Divisional Manager – Healthcare Advisory Services, 16 years experience; Nonnie Canham LLB – Healthcare Advisor, 2 years experience.

NFB has a separate specialist Short Term Insurance Division, as well as now offering specialist group companies in the fields of stock broking, wills and the administration of deceased estates.

“It requires a great deal of boldness and a great deal of caution to make a great fortune...but when you have got it, it requires 10 times as much wit to keep it” Nathan Rothschild, 1834

You’ve worked hard for your money... now let NFB make your money work for you. fortune favours the well advised contact one of NFB’s financial advisors East London • tel no: (043) 735-2000 or e-mail: info@nfbel.co.za Port Elizabeth • tel no: (041) 582 3990 or e-mail: info@nfbpe.co.za Johannesburg • tel no: (011) 895-8000 or e-mail: nfb@nfb.co.za Web: www.nfbec.co.za

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