Professional Millenials

New Client Onboarding Process

The initial, or getting to know each other, phase is about deciding whether we’re a good fit and want to work together. Typically, it looks something like this.

Step 1 : Confirm We Are A Good Fit

A 30-minute virtual meeting so we can both determine if this could be a potential fit. We aren’t the right firm for everyone and we will happily refer you to a firm that may be a better fit for your needs

Step 2 : Discuss How We Can Help You

≤60-minute virtual meeting where we better understand your needs and identify the value we can provide.

Step 3 : Email You A Proposal

We follow up with you to summarize how can help you, recommend the appropriate service model and provide the estimated fee if you were to sign on as a client.

Step 4 : Think It Through

Do you feel we can help you? Here are some questions that you can ask yourselves:
  • Do you feel heard and understood?
  • Do you believe Henceforward can help solve your financial problems?
  • Do you believe investing in this relationship will improve the likelihood of accomplishing your goals?
  • Does Henceforward seem credible, trustworthy and likable?

Step 5 : Let’s Start Working Together

We are lucky to be working with you! We begin by setting expectations and laying out the next steps to onboard you as a client

Once You Become a Client: Advice Journey Process

The process we are showing you has been provided to help you conceptualise the framework we follow when designing a strategy to help you achieve your financial and lifestyle goals.

We create a customised plan that is unique to you and we work with you in a way, and at a pace, you’re comfortable with. If you need to spend more time on a specific area, that’s okay with us. This is about you – and getting you where you want to go.

The steps we follow and time we spend on each area is unique to each individual and will differ from person to person. This should serve only as a framework and guide to help you understand the process.

Henceforward Family Office Fees
Define Your DNA

We want to make sure we understand you, what you need and how we can help you fulfil your vision and solve the financial challenges you’re faced with

Understand your vision, goals and what’s important to you
What obstacles and challenges are you experiencing in trying to achieve what’s important to you?
Discuss your values and priorities and how they impact your financial and lifestyle choices
Understand how your history and background with money are impacting your financial decisions?

How Long It Takes

Typically, 1-2 meetings depending on your situation and the complexity of your needs
Start at the Beginning

Understanding your cashflow and balance sheet are foundational in the planning process

How Long It Takes

Usually, 1-2 meetings depending on your situation, asset base, level of debt, personal dynamics e.g., single, married, kids etc.
Understand your spending habits and develop a budget that works for you and optimises your ability to achieve your goals
Ensure your cash reserves and liquidity needs are correct and appropriate
Establish an effective debt repayment strategy if needed
Discuss how to grow your ‘productive assets and net worth to achieve financial freedom
Develop Your Investment Framework

The investment universe is broad and complex. We aim to make the complex, simple. We set the scene for how you obtain financial freedom and independence

How Long It Takes

Ordinarily 1 meeting but we’ll spend as long as we need to here
Learn about your current investment strategy
Consider any preferences or ideas you have, e.g., social impact, active vs. passive
Help you understand the different types of investment risk
Develop your asset allocation framework and ensure you have that correct balance between local and offshore assets
Discuss the broader investment universe and the role different asset classes have
Review Your Existing Holdings

We ensure what you have in place already aligns with your vision and objectives

If you belong to an employer retirement fund, we review it to ensure you are optimizing the benefits available
Do you have a will and estate plan? If not, we make it a priority
We assess your risk cover and make sure you only have what you need
Perform a cost/benefit analysis of any other investments and financial products you own
Optimize for tax-efficiency

How Long It Takes

Should only take 1 meeting to discuss and review
Create Your Customised Wealth and Financial Strategy

We develop your comprehensive wealth and financial plan that aligns with your lifestyle and goals using our interactive software and modelling tools

How Long It Takes

  • 1 meeting to model scenarios and begin to form a picture of where you stand in relation to achieving your goals
  • A 2nd meeting to consider if any changes need to be made to the plan so that a final strategy can be agreed upon.
    • We model various scenarios to create your strategy so you can achieve what’s important to you
    Discuss and agree options so we can set your strategy in motion
    We assess whether you’re on target to achieving your goals
    Provide you with a comprehensive wealth and financial strategy that clear shows you how to achieve your goals
    Consider any trade-offs that you need to make so that you have a realistic template to get started
    Implement Your Agreed Financial Strategy

    Here we get the ‘admin’ done to set your strategy in motion

    How Long It Takes

    Typically, 1 meeting (sometimes 2) – to sign the paperwork, obtain outstanding documentation and do what needs to be done to open accounts etc. and get the strategy implemented.

    What Else We Do

    *This is an admin intensive step dealing with providers etc. to ensure we can implement your strategy smoothly and efficiently
    Sign paperwork
    Set up risk products if needed
    Open accounts
    Get rid of what you don’t need
    Arrange transfer of funds/set up debit orders
    Make sure your strategy is tax-efficient
    Establish portfolios
    Refining Your Strategy, Ongoing Service and How We Continue to Support You

    Getting the strategy implemented is the beginning and not the end of your journey. Life can get complicated. Stuff happens. Here we help you navigate life’s ups and downs to ensure you stay on track.

    Update your will

    Quarterly Check-Ins

    Four meetings a year to assess progress, review anything important to you, and a general discussion around what’s happening in your life and the world at large.

    Tax optimization

    Use Jan/Feb to optimize retirement and tax-deductible opportunities. Consider tax implications when purchasing and selling assets to ensure tax efficiency.

    Portfolio Management

    Does your investment portfolio (including retirement assets) remain aligned to achieving your goals? We research, rebalance, consider asset allocation, review the risks and opportunities, optimize offshore holdings, work with and interview portfolio managers … all so you don’t have to.

    Insightful Content

    Regular content to educate, inform and support you on your journey. We promise this won’t only be boring market updates that everyone sends out. Expect podcasts, webinars, newsletters and social media content to all be part of the mix.

    Special Situations

    Change jobs, take a sabbatical, get married, have kids, divorce, start a business etc. There’s always stuff happening and no matter what that might be, we’ve got your back. We help you navigate whatever life throws at you.

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    Estate Plan

    We make sure your wills are valid and up to date, and your estate planning is in place so that you have the peace of mind knowing those that depend on you will always be okay if anything happens to you.

    Access

    Hate sending an email or leaving a message, and no one gets back to you? We’re not clock watchers and are available when you need us. If you have a question or need to speak to us, we will get back to you within 24 hours.

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    Introductions and Referrals

    Co-opt and refer to specialists, e.g., wills, tax, fiduciary, property, legal. We can provide personal introductions to our network of contacts to make your life easier. We also work with your specialists if you have them in place already to ensure all your decisions are fully aligned to achieving your goals

    Seminars and Events

    We will invite you to our annual investment seminar where we provide access to industry thought leaders and information on topics that matter, as well as other events we host or partake in where we can add value, educate and inform.

    Our Fees

    Why Service-Led Fees?

    We believe that the existing remuneration model that governs our industry is outdated. It’s all about accumulating assets under management and charging a ‘fee’ tied to the value of those assets, which has no direct correlation to the quality of advice or level of service provided. That also means customised and specialised advice is only accessible to a few.

    This approach creates inherent conflicts of interest because unless there is a sale of a financial product or investment that can incur a ‘fee’ or commission, it typically won’t be discussed, assessed, or recommended. We want to discuss your entire balance sheet and how that serves you, not just the areas we can make money from.

    Henceforward aims to adopt a radical but fair approach that provides real value. Our relationships are with our clients, not with their money.

    Our approach adopts a simple service-led fee model, determined at the outset of the relationship and customised to the level of service and advice provided.

    We aim to provide an unbiased and impartial relationship driven approach whereby we always act in your best interests and do what’s right for you, without any conflicts of interest.

    No product commissions
    No investment advisor ‘fees’
    Unbiased and impartial
    What Are Our Fees?

    Our fees on the professional millennial package start at R2,000 per month and encompasses the full-service package as referenced above, including the customised and comprehensive wealth and financial plan you are given. For more complex needs (e.g., a successful business owner with significant equity, assets in multiple jurisdictions) we would calculate and agree a suitable fee schedule in advance.

    You have the flexibility to cancel at any time. Most of the first year is spent creating and implementing your financial strategy. After that, we continue to navigate, adjust, refine and optimize. The journey is ongoing. But if you feel you reach a point where you’re comfortable steering the ship yourself, we will always part as friends.

    all fees quoted are inclusive of Value Added Tax of 15%

    Henceforward Professional Millennial Fees
    The Benefits of Service-Based Fees Compared to the current ‘AUM Model’

    The hypothetical example below shows the difference a 1% p.a. advice fee can make in your total investment value over a period of 30 years and why a service led fee model is not only fair and more transparent – but saves you money over the long-term.

    A person who invests R1 million as a lump sum today and contributes R5,000 per month towards achieving financial independence, would pay almost R6 million less in fees over 30 years by not having a 1% p.a. advice fee attached to their various investments (which include retirement funds etc.)

    Henceforward Professional Millennial Fees

    Even if you paid a service-based fee of R2,000 per month (adjusted annually for inflation) for the full 30 years – you would come nowhere close to paying R5.8 million in fees.

    We want to make it easier for you to achieve financial freedom – not harder. In a way that is fair, transparent and flexible.

    Henceforward Family Office Fees
    What About Commission on Risk and other Financial Products?

    Where you have a need for a risk product like life, disability or severe illness cover – we default the commission to zero
    This can result in a 15-30% saving in premium on your risk product when established with zero commission and means we have no conflicts of interest as to who we place the business with on your behalf
    Any financial product we recommend we will always default to zero commission or zero fees (whenever its possible). The long-term savings to you using this approach are significant.
    Notes

    *There are various ways we can levy the fee, e.g., invoice you or your business, EFT, arrange for it to be deducted from your investments.

    *If we are co-opting 3rd party specialists to help you with a bespoke planning need – e.g., drafting of wills (local or foreign), setting up a trust, using a currency specialist to move money offshore, specialised tax or legal advice – these service providers will charge you a fee for their work, but we will always aim to obtain preferential rates for you

    *We don’t provide advice or services relating to medical aid or short-term insurance. We will refer you to a partner in our network for these services.

    *On occasion, certain products are designed with a fee or commission already built into the
    product, e.g., structured products that have a return profile designed with a commission built
    into them. These are the only instances in which we would receive a commission from a product
    provider, but we will always disclose to you should that be the case.

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