Retirees

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 framework demonstrated below has been provided to help you conceptualise the process we undertake and the different subjects we might cover when optimizing a retirement strategy to help you achieve your financial and lifestyle goals as you move into the next phase of your life.

Retirement is a significant and important life event. It can seem daunting, exciting and challenging. From working your entire life where you’ve spent 30-40 years accumulating assets – now you need to make sure everything you’ve accumulated sees you through the next phase of your life.

From accumulation to deaccumulation and drawing a sustainable income stream means there is less scope for error and careful consideration needs to be made in respect of the ongoing risks, while focusing on what’s important and living the life you’ve worked hard to achieve.

Henceforward Family Office Fees
Personal Retirement Blueprint

You’ve worked hard your entire life and as you transition into this new phase of life – understanding your goals, priorities and concerns is foundational in developing the right strategy for you

How do you imagine life in retirement for yourself?
What do you like to do and how you plan on spending your time?
Any special hobbies or projects you’ve always wanted to try
Do you have dreams for travel and adventure?
Do you have any concerns or fears that you feel might prevent you from living your ideal life in retirement?
Have you factored in what you’re going to do as you get older and might need special care?

How Long It Takes

Typically 1-2 meetings depending on your circumstances and the complexity of your situation and needs.
Cashflow and Balance Sheet Analysis

We formulate a clear understanding of your budget, sources of income and the assets available to provide you with the income you require.

How Long It Takes

Usually 1-2 meetings depending on your lifestyle, needs in retirement and available assets to consider.
Understand your balance sheet and the assets available to provide you with an income in retirement
Develop a clear budget and understanding of the income you need and want
Is there flexibility within your budget to adapt to evolving market conditions?
Plan for ad hoc events and purchases like overseas holidays, a new car, additional medical costs etc.
Discuss any trade-offs you might need to make to live your ideal retirement life
Have you factored in what you’re going to do as you get older and might need special care?
Evaluate The Optimal Retirement Product Mix

Make sure you understand the options available to you in order maximize your income in a way that is sustainable across products and segments

How Long It Takes

Process usually takes 1-2 meetings depending on what is important to you and assets available to generate income in retirement

What Else We Do

We discuss the pros and cons of various products/options, within a framework of the current global investment and geopolitical environment
Understand the different product options available e.g., Living Annuity vs. Guaranteed Life Annuity
Understand the rules of your existing employer retirement fund and options provided
How do current interest rates, inflation etc. impact your optimal strategy?
What retirement assets are available to invest (e.g., Pension vs Provident Fund?)
Are there discretionary assets and other sources of income to factor into the mix?
Lump sum and tax-free commutations
What is an optimal drawdown strategy?
Life expectancy considerations and planning for longevity risk
Rethink Your Investment Approach

Moving from accumulation to deaccumulation (living off capital), changes the risks and means reframing how you think about your investments to create an optimal strategy

How much risk do you need to take, can you afford to take, and should you take?
What role do your existing investments play in your overall retirement strategy?
What investment approach is most suited to you at this stage of your life?
Do you have any preferences or beliefs about how you would like your portfolio managed, e.g., local v offshore, active vs passive, ESG considerations?
Creating your optimal asset allocation taking into account longevity, legacy and other factors
Have you factored in what you’re going to do as you get older and might need special care?

How Long It Takes

to complete this step within 1 meeting where we aim to create an integrated framework for your investment decisions.
Review Your Estate Plan and Other Holdings

Simplify, Consolidate, and Align. We want retirement to be stress and hassle free

How Long It Takes

1 meeting to review your estate plan and other financial holdings to ensure everything is aligned and consolidated to enable to live a stress-free life in retirement
Is your estate plan current and up to date?  Do any changes need to be made to your will?
Is there sufficient liquidity in your estate to ensure seamless succession?
Cost/benefit analysis of your existing financial products
Are there other opportunities to simplify and consolidate?
Create Your Customised Lifestyle Retirement Strategy

Your personal, customised retirement plan, that gives you a clear strategy to execute and shows you the possibilities of achieving your ideal life in retirement

How Long It Takes

We have 1 meeting to run models and begin to form a picture of where you stand in relation to achieving your goals and whether we need to make any changes. A 2nd meeting to consider what/if any changes need to be made to the models so that a final strategy can be agreed upon

This is the ‘Busiest Step’

And takes several hours of back-end work from our side to develop and prepare your personal retirement plan, customised to what you want and need
Model various scenarios so you can visually see the possibilities
Develop a clear picture as to whether you’re on target to achieve your income objectives and how long your capital will last
Discuss and agree trade-offs to achieving your aims and living your ideal retirement life
Evaluate the implications different investment strategies could have on your capital
Perform an estate liquidity calculation to ensure all contingencies are planned for
Provide you with a clear, clearly defined plan to achieve your retirement goals and aims
Implement Your Agreed Retirement Strategy

Once the strategy has been agreed, now it’s all about implementation and setting your plan in motion

How Long It Takes

1 meeting to sign the paperwork and get the documentation needed to move forward

This is an admin intensive step

and often takes several hours of completing paperwork and liaising with various stakeholders to ensure your strategy is implemented correctly and efficiently
Sign paperwork
Open accounts
Arrange transfer of funds
Establish portfolios
Liaise with various product providers
Obtain quotes
Staying the Course: Reviewing, Support and Monitoring

Retirement is a journey, not a destination. Your needs evolve and circumstances change. Life Happens. We stay on top of everything, so you don’t have to

Update your will

Quarterly Check-Ins

We perform one big annual review to consider income and lifestyle needs, investment performance and asset allocation etc. We perform 3 additional meetings a year to check in and discuss anything important to you whether it be markets, important events, any changes in circumstance etc.

Tax optimization

No decision is made in a vacuum. We plan for tax efficiency and optimization. The implications of buying and selling assets. We don’t want you paying more tax than you absolutely must. We work with specialists where needed.

Portfolio Management

The ongoing review and management of your retirement and broader investment portfolio, taking into consideration the risks, broader markets, the need to rebalance, review the asset allocation, work with and interview portfolio managers … all to ensure you remain on track and your objectives are met

Insightful Content

Regular content to educate, inform and support you. We promise this won’t only be boring market updates that everyone sends out.

Special Situations

Kids and grandkids, unexpected capital needs, new travel plans, moving to a retirement home, death of a spouse/partner. Whatever happens, we will be there to help you on the way.

retirement planning

Estate Plan

Staying on top of your estate plan is one of the most important things to do. Ensuring wills are valid and up to date and estate liquidity is sufficient, with beneficiaries and heirs involved and informed of what they need to do. We also assist executors and with winding up of estates to make the succession process as seamless as possible

Access

We’re available whenever you need us. Give us a call or send us an e-mail and we’ll always respond within 24 hours. That’s our guarantee to you.

pay off debt

Co-Opt Specialists

We co-opt and refer to specialists when needed, e.g., wills, tax, fiduciary, property, legal. We can provide personal introductions to our network of contacts if you need them. If you have specialists in place, we work alongside them to ensure your decisions are fully aligned to achieving your wishes.

Events and Seminars

Free invitation to investment seminars and events we host or are a part of. Industry leading subject experts will allow you to stay abreast of what is happening within the global geopolitical and investment landscape

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 form of remuneration also 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.

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 service fees on the retiree package start at R2,500 per month and encompasses the full-service package as referenced above including your customised personal retirement plan. For more complex needs (e.g., exiting a business, more complex balance sheet) talk to us and we can calculate and agree a suitable fee in advance.

These fees are calculated based on one in person meeting a year (usually the big annual review) with the quarterly updates conducted via zoom/other online meeting tools. If you would like all meetings to be in-person – a surcharge will be added depending on your location and will be agreed in advance.

You have the flexibility to cancel at any time. Most of the first year is spent creating and implementing your retirement 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 Retiree Fees
The Benefits of Service-Based Fees Compared to the current ‘AUM Model’

The example below shows the savings a 0.75% p.a. advice fee can make on your total retirement fund value over a 1-year period. Imagine you have assets at retirement of R10 million including your retirement and discretionary investments.

You are charged an ‘advice fee’ to create a retirement plan, implement the appropriate investment portfolio which will probably include a Living Annuity and on an ongoing basis you may receive an annual review and 1-2 further meetings a year.

Henceforward Retiree Fees

You are probably going to be charged an annual advice fee of between 0.50% – 1.00% p.a. In monetary terms that is between R50,000 and R100,000 p.a. based on a total investment portfolio of R10 million (which fluctuates as the value of your portfolio fluctuates).

The benefits of having a fixed service-led fee model of R2,500 per month represents not only clear value in from a monetary perspective, but you have a clear framework for the ongoing service and advice provided.

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

Where you have a need for a risk product like life cover for estate liquidity or severe illness to protect against things like cancer, heart disease, stroke etc. - 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., Debit order, EFT, or we can arrange for it to be deducted from an investment product like your living annuity.

*If we are co-opting 3rd party specialists to assist you with a bespoke planning need – e.g., drafting a will, establishing a trust, using a currency specialist to move money offshore, specialised tax or legal advice – these service providers may 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 because there is no option for us to default to zero, but we will always disclose to you should that be the case.

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