Retirement and Investment Convention

The Financial Planner
1 December 2016

September saw the second annual Retirement and Investment Convention, hosted by the FPI Centre for Professional Development, in Durban, Johannesburg and Cape Town. The theme of the convention that came through quite clearly for delegates is that retirement and investment planning is no longer only about money, but rather about a lifestyle that a client would like. This approach changes the traditional retirement planning method of calculating a lump sum based on the desired income, to more about having a conversation with a client about what life they want to live and then working out the finances needed to make this a possibility.

In the age of fintech , where the first approach can be easily commoditised by so called “Robo Advisors” the second more human approach is increasingly becoming the financial planners value proposition.

Day one – Retirement planning
Day one, sponsored by Overseas Trust and Pension, focused on retirement. The first talk of the day was delivered by Ilze Alberts an internationally renowned Wealth Psychologist and human behaviourist specialist. Her talk touched on her personal story and why she become inspired to consider generational wealth and to see if she could change the rags to riches to rags proverb. Her talk was not only theoretical but she took the audience through a practical exercise, using the Demartini Method that could assist with determining client’s values. This can then be used to deliver personal focused financial planning advise.

All retirement funds (pension, provident or retirement annuity) have a board of trustees who have a fiduciary duty to manage the fund for the benefit of the members. Stephen DoId took delegates through the role of trustees in a retirement fund. This enabled financial planners to not only understand this vital role, but also empowered them with questions to ask the trustees to ensure that the fund is well governed, when recommending a fund.

The tax rules relating to retirement funds are constantly changing. 2016 saw an Act, dealing with annuitisation of provident funds that was signed in 2014 amended two days before the implementation date of 1 March 2016. Marius Botha, CFP®, unpacked the technical aspects of the tax changes both implemented and to be implemented.

With the world becoming smaller and clients wanting portfolios not only diversified by asset class but also geographically. Rex Crowley of Overseas Trust and Pension discussed and took delegates through some of the options for offshore retirement planning.
The day closed with Wouter Fourie, CFP®, 2015 FPI Financial Planner of the Year, providing practical insight to engaging with clients and developing process to deliver financial planning advice. This provided a practical way of implementing the knowledge gained during the day.

Day two – Investment planning
The second day, sponsored by ABSA, focused on investment planning. The day started with a presentation by Roland Rousseau from ABSA introducing a risk management approach to investing.

Tiago Fernandes, international speaker, did not only focus on the use of structured products, but he provided valuable insight into behavioural finance. A relatively new though increasingly important skill for financial planners to master.

Warren Ingram, CFP®, 2011 FPI Financial Planner of the Year and well known media commentator, once again gave practical insight into running an investment advisory practice. His presentation provided insight into the mistakes and success of his practice and their robo-advisory platform.

Hannes Du Plessis, from Absa Risk Management, provided a different take on the active vs passive debate, suggesting that the debate should not be active vs passive but rather to take a risk management approach. His technical analysis provides some food for thought by using risk management principles to build an investment portfolio.

In closing, Shaun Leviathan (Johannesburg and Cape Town) and Costa Economou (Durban); both from Colourfield; provided not only an insightful presentation on behavioural finance but also a masterclass on delivering a great presentation.

“This 630 word article doesn’t do justice to the knowledge and learning that we took away from this event. I for one can see this event taking its place alongside other quality events like the Annual Refresher Workshop”, said David Kop, CFP®, Head: Consumer Affairs and Advocacy at the Financial Planning Institute (FPI).

All retirement funds (pension, provident or retirement annuity) have a board of trustees who have a fiduciary duty to manage the fund for the benefit of the members.

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