Case Study: Retirement

Personal Details:
NAME Brad Pitt

D.O.B. 5/9/1966

Retirement Age 55 {at which time he will commute all lump

sums from all sources}

MARITAL STATUS Married in community of property on

15/1/2005

PARTNER Angelina Jolie

PARTNER’S D.O.B. 12/11/1973

Adopted son Max (date of birth 1/2/1999)

DEPENDANT

ADDRESS Beverley Hills 90210, Sandton

EMPLOYER – BRAD Hollywood Film Producers

OCCUPATION – BRAD Manager

SALARY - BRAD R40 000

R35 000 {pensionable}

ASSETS OWNED BY BRAD

PENSION FUND Defined Contribution

DATE JOINED 1/1/1991

Employer: 9% of pensionable income

CONTRIBUTION
Employee: 7% of pensionable income

CURRENT FUND VALUE R680 000

DEATH BENEFIT {LUMP SUM} 4x annual salary

DISABILITY BENEFIT {LUMP SUM} 3 x annual salary

OTHER ASSETS OWNED BY BRAD

ASSET TYPE DATE OF ASSET VALUE ASSET ASSET TO BE

PURCHASE LIABILITY REALISED OR
FIXED @
RETIREMENT

Residential 22/12/2006 R2 000 000 R500 000 Realised

Property
Original R1 000 000
Purchase
Price

Holiday House 20/03/2002 R1 000 000 Fixed

Household 18/02/2001 R350 000 Fixed

Effects

4X4 Vehicle 10/03/2006 R 250 000 Fixed

Cash in 15/04/2000 R 500 000 Realised

Standard Bank
Assume 7%
growth

POLICIES OWNED BY BRAD

INSTITUTION Liberty Life

TYPE OF POLICY Endowment

DESCRIPTION Lifestyle Endowment

POLICY NUMBER 987654379

PREMIUM R250 p.m.

ENTRY DATE 01/02/1992

MATURITY DATE 01/28/2022

FUND VALUE R50 000

BENEFIT NAME Life Cover

BENEFIT AMOUNT R50 000

NOTE Nominated beneficiary: Wife

INSTITUTION Old Mutual

TYPE OF POLICY Whole Life

DESCRIPTION Greenlight Death Benefit

POLICY NUMBER 35465786

PREMIUM R200 p.m.

ENTRY DATE 01/07/1996

FUND VALUE R50 000

BENEFIT NAME Life Cover

BENEFIT AMOUNT R500 000

NOTE Nominated beneficiary: Wife

INSTITUTION Old Mutual

TYPE OF POLICY Retirement Annuity

DESCRIPTION FlexiPension

POLICY NUMBER 12409378

PREMIUM R250 p.m. with an annual escalating of CPI

@ 7%

ENTRY DATE 01/02/1992

MATURITY DATE 01/28/2022

FUND VALUE R55 000

BENEFIT NAME Life Cover

BENEFIT AMOUNT R55 000

NOTE Nominated beneficiary: Wife

Brad realises that he will have income from his pension fund and retirement annuity
policy but is not sure if this will be sufficient to meet their standard of living at retirement.

He would like to ensure that he will be able to provide for himself and Angelina in the
event of their retirement.

He has given you the following financial objectives:

He would like at least R30 000 income per month escalating at the inflation rate until the
age of 80.

He is keeping all his assets, except the Primary Residence as they plan to sell it and
move into the Beach House at retirement.

He says he is undecided about the R500 000 cash but at the moment he feels that he
will reinvest the money to generate an income.

He plans to spend the proceeds from the Endowment Policy to take him and Angelina on
a holiday as they enjoy travelling.