Last Updated on 24/07/2025 by Carl-Peter Lehmann
This case study features Jan, a 70-year-old retiree who, despite having a sizeable portfolio of around R27 million, has relatively straightforward financial planning needs. Most of his wealth is housed in a well-funded living annuity from which he draws a sustainable income, and his discretionary investments are modest in comparison. While his circumstances are financially strong, they are not particularly complex — a factor we take into account when determining the right level of advice and what a fair, transparent fee should be.
Client Background: Retired South African Couple with a Global Family
Name: Jan
Age: 70
Marital Status: Married
Children: Two adult children living abroad
Life Stage: Retired (for 15 years)
Primary Need: Investment oversight and better value from his financial advice
Total Balance Sheet: ~R27 million
- Living Annuity: R25 million
- Discretionary Portfolio: R2 million
- Annual Drawdown: 5% from living annuity (fully covers lifestyle needs)
The Challenge: High Advice Fees and Stale Investment Thinking
Jan and his wife live a comfortable retirement in South Africa. With most of their wealth sitting in a well-funded living annuity and a modest discretionary portfolio on the side, their day-to-day financial needs were well met.
But after years of disengaged service and limited input from his previous advisor, Jan started questioning the value he was receiving — especially in relation to the high percentage-based fee he was being charged. He wasn’t unhappy with his financial position, but he knew it could be better.
With adult children now settled abroad and estate planning on his mind, Jan approached Henceforward looking for sharper thinking, clearer value, and a team that would proactively help him steward his wealth through retirement and beyond.
Further Reading: Making the transition to retired life and the emotional impacts that can have
Our Retirement Planning Solution
1. Strengthened His Living Annuity Portfolio
- Mandate: CPI + 4%
- Introduced hedge funds to improve downside protection and return consistency.
- Slightly refined the asset allocation to align with our house view, adding exposure to value-oriented and inflation-resilient strategies.
- Brought in a mix of established and boutique managers (like Granate, Fairtree, Abax, and Bateleur) to improve performance and diversification without adding unnecessary complexity.
This gave Jan a more robust and risk-managed investment structure aligned with his long-term goals — without reinventing the wheel.
2. Reduced His Tax Liability with an RA
Even though Jan is retired, we helped him use some of his discretionary funds to contribute to a retirement annuity (RA) to generate tax deductions.
- This unlocked a simple, effective tax planning opportunity that had been previously overlooked.
- It also created some useful flexibility in his estate planning structure.
A small change with a meaningful annual impact.
3. Refreshed and Simplified His Discretionary Portfolio
Jan’s discretionary investments, valued at around R2 million, had a strong offshore bias — which we agreed was appropriate, especially with both of his children living abroad.
Because this capital isn’t required to fund his lifestyle, we were able to take a more growth-oriented approach. We introduced exposure to global technology and innovation funds to benefit from long-term trends like artificial intelligence and automation, while balancing that with quality, value-oriented strategies to maintain a more grounded risk profile.
The result is a well-diversified, future-focused portfolio with the potential to grow meaningfully over the coming years, without unnecessary complexity or overlap.
Further Reading: A case study on how we helped a professional couple with their financial planning
Our Flat-Fee Advice Model: Fair and Aligned
We serve Jan and his wife on a flat fee of R36,000 per annum, which reflects the time and complexity involved in managing their financial affairs — not simply the size of their portfolio.
For context:
- Jan’s total balance sheet is approximately R27 million.
- At a typical industry fee of 0.50% on assets under management, he would be paying around R135,000 per year — nearly four times more than our fee.
Our flat-fee model has significantly reduced his annual advice costs while ensuring he receives ongoing, tailored guidance that’s aligned to his needs — not tied to his net worth.
Where Value Was Delivered
✅ A more resilient investment portfolio tailored to retirement drawdown needs
✅ Improved tax efficiency through strategic RA contributions
✅ Better fund selection and manager diversification in both local and offshore portfolios
✅ Clear fee alignment — no surprises, no percentage-based leakage
✅ A trusted sounding board to help with decisions around income planning, portfolio updates, and legacy goals
“We weren’t in trouble — but I knew I wasn’t getting the value I should. The team at Henceforward helped me simplify things, save money, and feel confident again.” – Jan
Closing Thoughts on jan's retiree case study
While Jan’s financial situation wasn’t complex, he still deserved better value, sharper thinking, and a more thoughtful approach to retirement planning. By delivering this within a flat-fee structure, we’ve helped him maximise the value of what he already has, while giving him peace of mind for what lies ahead.
Now Read: How We Helped a Retired Family Office Client With a More Complex Balance Sheet Achieve Their Needs
FAQ (Quick Summary)
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1. How much does Henceforward charge Jan?
R36,000 p.a. flat fee — no AUM percentages. (Reviewed and discussed annually)
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2. How does this compare to traditional fees?
Traditional advice fees at 0.5% on R27 million = R135,000 p.a. Jan saves almost R100,000 annually. For an annual review and very little else, he was justified in feeling he wasn't getting real value for the price.
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3. What value did you provide?
Improved investment performance potential, better tax planning, fund manager optimisation, and transparent, proactive advice.
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4. What’s the difference in the approach?
We focus on time, complexity, and outcomes — not account size or random percentages.
Now Read: Why David and Elaine's fee is R60,000 p.a. due to their more complex situation
Carl-Peter Lehmann
Carl-Peter Lehmann is a Certified Financial Planner® and Director at Henceforward, a South African wealth management firm offering flat-fee financial advice. With over two decades of experience helping clients navigate retirement, offshore investing, and estate planning, Carl-Peter specialises in simplifying complex decisions and delivering value through thoughtful, independent advice. When he's not advising clients, you’ll likely find him trail running in the mountains with his dog, Rusty.
