Discretionary product options and advantages · EXAMPLES | R1 000 000 (X4) Global portfolio...

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DISCRETIONARY PRODUCT OPTIONS AND ADVANTAGES Linda Blom | Business Development Manager | Glacier by Sanlam

Transcript of Discretionary product options and advantages · EXAMPLES | R1 000 000 (X4) Global portfolio...

Page 1: Discretionary product options and advantages · EXAMPLES | R1 000 000 (X4) Global portfolio negative +5% +15% +25% Participation (pre-tax) 0% +20% +60% +100% Pay-off (pre-tax) R1

DISCRETIONARY PRODUCT OPTIONS AND ADVANTAGESLinda Blom | Business Development Manager | Glacier by Sanlam

Page 2: Discretionary product options and advantages · EXAMPLES | R1 000 000 (X4) Global portfolio negative +5% +15% +25% Participation (pre-tax) 0% +20% +60% +100% Pay-off (pre-tax) R1

PRODUCTS FOR GROWTH

D I S C R E T I O N A R Y P R O D U C T S

CashOptionEndowments

Glacier Sustainable

World Enhancer

InvestmentPlan

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PRODUCTS FOR INCOME

D I S C R E T I O N A R Y P R O D U C T S

Voluntary Life Annuity

Investmentplan

Term Annuity

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ENDOW MENTS

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N O E X E C U TO R ’ S

F EES

L I Q U I D I T Y I N T H E ESTAT E

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3

4

1

5

PROTECTION FROM CREDITORS

Endowment

5-year

5+5

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3

4

1

5

PROTECTION FROM CREDITORS

Cash-in

Maturity

5+5

5+4

Reinvest

Withdrawal

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3

4

1

5

PROTECTION FROM CREDITORS

Buy an asset

Maturity

5+5

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4

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PROTECTION FROM CREDITORS

Continuation

Maturity

5

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3

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PROTECTION FROM CREDITORS

Death

Beneficiaries

Beneficiary | Spouse, child, stepchild, parents

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TAX BENEFITS

TA X E D I N O W N H A N D S

Unit trust or Investment Plan

Tax on plan must be paid over by the client each year

Own tax rate

Endowment and sinking fund

Tax on the policy is deducted and paid over by Sanlam

Fixed tax rate

TA X E D I N T H E F U N D

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TAXED W ITHIN YOUR OWN HANDS

Direct unit trust /

Investment plan

Income tax

45%

CGT

Up to 18%(40% inclusion)

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EQUITY

TAXED WITHIN THE FUNDEndowment /

Sinking fund

CASH

interest

BONDS

interest

PROPERTY

rental income dividends

SIM

Balanced

Fund

Income tax Income tax

Income tax

CGT

CGT

Dividend tax

CGT

30%

30%

30%

12%

12% 12%

20%

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ENDOW MENT VS INVESTMENT PLAN

ENDOWMENT INVESTMENT PLAN

Income tax 30% 45%Capital gains tax 12% 18%CGT inclusion rate 40% 40%

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TAX ON TRUSTS : F IVE-FUND APPROACHName of fund Rate of normal

income tax

Rate of tax

CGT

The untaxed policyholder fund 0% 0%The individual policyholder fund 30% 12%The company policyholder fund 28% 22.4%The corporate fund 28% 22.4%The Risk Policy Fund 28% 11.2%-22.4%

TRUST

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TAX ON TRUSTS

Income tax

45%

CGT

36%(80% inclusion)

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OPPORTUNITIES

TrustsIndividuals

with a higher tax rate

than 30%

Professionals,

Farmers,

Business

owners (Sec 63 protection)

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GLACIER ENDOW MENT TOOL

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SUMMARY: THE BENEFITS OF AN ENDOW MENT:

1 2 3

4 5

Ease of administration

Taxbenefits

Protection from creditors

Provides liquidityin the estate

Savings on executor’s fees

6

Regular tax-free withdrawals after

5 years(in-fund tax still applicable)

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EN D O W M E N T

PR O D U C T S

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ENDOW MENT PRODUCTS

Vantage Life Plan

No penalties in first 5 years

No guarantees

Wealth Edge Endowment Plan

Penalties in first 5 years (10%, 8%, 6%, 4%, 2%)

Guarantees

Loyalty bonus No loyalty bonus

Glacier platform

8% additional allocation

Life platform

No additional allocation

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6 FUNDS OFFERING GUARANTEES

Guaranteed funds Initial unit

price

Highest unit

price

SIM Inflation Plus 100% 95%Allan Gray Stable 100% 95%Coronation Capital Plus 100% 90%Nedgroup Opportunity 100% 90%SIM Balanced - 80%Allan Gray Balanced - 80%

• Explicit guarantee• Measured for 5-year period

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(Over the past five years as at March 2020)

IMPACT OF COVID19 ON POL ICY MATURITY MARCH 2020 – NEDGROUP OPPORTUNITY

1

2

Policy with protection

Policy without protection

Nedgroup Investments Opportunity Fund

7580859095

100105110115120

01/04/2014 01/04/2015 01/04/2016 01/04/2017 01/04/2018 01/04/2019

Nedgroup Investments Opportunity 100% of initial or 90% of the highest unit price

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I N V ES T M E N T PL AN

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INVESTMENT PLAN

Discretionary

plan

Taxed in own hands

Estate duty &

Executor’s fees

Not regulated by

LT Insurance Act

No restrictions (Sec 54)

No term

Ad-hoc any amount

Repurchase any amount

Draw income or not

Phasing-in

TaxpayingNon-taxpaying

Individuals Trusts Lump sum

& debitorder

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C A SH O PT I O N

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CASH OPT ION

Investment

options

SIM Enhanced Yield

A cost-effective

parking facility

for short-term cash

No Glacier upfront or admin fee

Flexible! Withdraw or transfer

to any Glacier product at any time

Taxed in personal capacity

Sanlam Diversified

Income FoF

Glacier Global Stock Feeder

FoF

Glacier Invest Flexible

Income Wrap

Glacier Money Market

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GLACIER SUSTAINABLE

W ORLD ENHANCER

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SIMILARITIES: GLACIER CAPITAL ENHANCER

Global portfolio

100% allocation All fees priced in

5-year termsinking fund

Enhanced returns if positive index

12% CGT

Capital guarantee

No currency risk

Top-rated banks

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ENHANCED RETURNNegative return Positive return

100% Capital protection

* 352%

(or 3.5 times)

after tax

400% (or 4 times) the global portfolio return

Determined at inception

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EXAMPLES | R1 000 000 (X4 )

Global portfolio negative +5% +15% +25%

Participation (pre-tax) 0% +20% +60% +100%Pay-off (pre-tax) R1 000 000 R1 200 000 R1 600 000 R2 000 000Annualised return (pre-tax)

0% 3.7% pa 9.9% pa 14.9% pa

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RC8 EURO INDEX

First tranche available 11 August to 18 September

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THANK YOU

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Any information contained in this presentation as well as any opinions expressed and information provided by any employee, officer or director of Sanlam Life Insurance Limited (“Sanlam”) and any of its subsidiaries during and pursuant to this presentation, shall not be construed as advice as contemplated in the Financial Advisory and Intermediary Services Act 37 of 2002. Neither Sanlam nor any of its subsidiaries accordingly accepts any liability whatsoever for any direct, indirect or consequential loss arising from the use of this document or its contents.

G L A C I E R F I N A N C I A L SO L U T I O N S ( PT Y) LT D I S A L I C EN S E D F I N AN C I A L SERVI C E S PR O VI D E R .

Glacier Financial Solutions (Pty) Ltd. | A member of the Sanlam Group | Private Bag X5 | Tyger Valley 7536 | Email [email protected] | Tel +27 21 917 9002 / 0860 452 364 | Fax +27 21 947 9210 | Web www.glacier.co.za | Twitter @GlacierBySanlam | Reg No 1999/025360/07 | Licensed Financial Services Provider The Glacier Sustainable World Enhancer is set up in a sinking fund policy underwritten by Sanlam Life.Sanlam Life Insurance Ltd. | Email [email protected] | Tel + 27 21 916 5000