Personal Products

As an independent Financial Advisory Service HDO Financial Designs provide convenient access to a full spectrum of Personal Products within the Life Insurance and Investment markets.

saving1.gifWealth Management Products

Short Term Financial Products

Unit trusts -
Unit trusts are the pooled resources of thousands of investors who have entrusted their money to a management company. The management company buys shares on the Johannesburg Stock Exchange on behalf of the investors.

The trust does not give the shares to the investor, but combines them in a portfolio. The management then divides the portfolio into many equal "units." The investor receives a certain number of units for the money he has entrusted to the company that manages the unit trust.

The Johannesburg Stock Exchange represents the main sectors of the economy. These are gold, other mining, mining houses and industry. The unit trusts represent each of these four sectors in their units. A fifth sector - liquid assets or cash - completes the contents of a unit trust portfolio.

Anyone can buy units by investing a single lump sum or by investing on a regular monthly basis. In most equity or share investments there is always an element of risk. Fluctuations of share prices on the JSE cause this risk and are also responsible for their increase or decrease in value.

Money Market -
In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term liquid funding for the global financial system. The money market is where short-term obligations such as Treasury bills, commercial paper and bankers' acceptances are bought and sold.

The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time, typically up to thirteen months. Money market trades in short term financial instruments commonly called "paper". This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity.

Medium Term Financial Products

Education Planning -
The rising cost of education makes it imperative for parents to start saving at the earliest possible time. Ideally, that's just after your child is born. But, if that's not possible, then there's always the next best thing - now. Complicating matters is the fact that your savings or investments are no longer confined to funding tertiary education. Nowadays you need to make provision for school (primary and high) as well as pre-school!

Depending on your choices (type of school, degree or diploma) you will need a small fortune. But, with the right plan, an early start and a little bit of investment discipline it is not impossible.

Debt Consolidation -
Debt Consolidation is the process of combining all or some of the client's debts into one large debt. Debt Redemption is the process of redeeming a client's debt. There are many ways to reach this goal, some of these are by consolidating the clients existing debt, by reducing clients' short term debts, accelerating repayments into long term debts, thereby reducing interest paid, this is done by Portfolio Restructuring.

This enables the client to dramatically increase their Nett worth through financially sound investments. When client gets to retirement he can redeem his property and purchase a smaller home, using the profit to supplement his retirement income.

One of the aims of debt redemption is to use the money the client is currently spending and reallocate or restructure how it is spent to the client's best advantage. The client has the same (or better) Insurance cover (Short term and long term), lower monthly expenses, the saving is utilized for debt redemption.

Another aim of debt redemption is to help the client without it affecting his current financial circumstances, in other words he will spend no more than he is currently spending and therefore feels no financial squeeze, however, simultaneously clearing debts at a much faster rate.

Tax Efficient Investments

Endowment -
An endowment is an insurance-based investment product. You can either pay a monthly premium or a lump sum both of which are invested in a mix of equities, gilts, property and cash. " Endowment policies are tax-effective for high income earners. This is because the fund pays a 30% tax rate, whereas you could pay up to 45%.

Once the endowment reaches maturity you can elect to cash it in or leave the policy running and withdraw tax-free amounts.

Long Term Financial Products

Retirement Planning
Most people find themselves reaching retirement without having done any preparation or planning. The most of us strive to have financial independence at retirement.

Research has shown that only 3 out of every 10 South Africans can retire financially independent at the age of 55 or 65. The rest will have to rely on government pension scheme's or be dependent on other members of their families to support them at old age, the majority will work till death even if they are old and ill.

After working actively for years, we are sure without a doubt you earn the reward to retire financially independent. Precise and accurate financial planning will lay a platform for you to build your future the right way.

The planning process:
It is very important to always have a plan, this will keep you focused and determined to achieve you financial goals. It is now the time to start that plan to work for you.

Estate Planning
Estate planning and conservation involves the determination of the value of a person's assets and liabilities at any given time and the implementation of steps to:

  • state duty as low as possible
  • keep the value of assets at a certain level for the purpose of ensuring that any growth in the value of these assets does not become dutiable in the owner's estate;
  • ensure that enough cash to pay estate duty and other costs involved in the winding up of the estate is available;
  • ensure that during the lifetime of the persons planning their estates, investments are made giving the highest after tax returns;
  • ensure that the survivors of the deceased who were dependent on him, have enough cash for their living requirements;
  • ensure that the deceased's assets are distributed in the manner intended;
  • take into consideration all taxes that may increase an estate's tax liability and reduce the overall distribution to heirs.

Estate Planning has been defined as "the arrangement, management, securement and disposition of a person's estate so that he, his family and other beneficiaries can enjoy and contrive to enjoy the maximum benefit from his assets and estate during his lifetime and after his death, no matter when death may occur".

Wills And Trusts-
A will is a legal document which must conform to certain legal requirements. It is a way in which a person can decide while living, how his assets are going to be distributed after his death. If no will has been drawn up and the person dies, he/she will die in testate and the distribution of assets will be done according to legislation and not necessarily as he wanted to distribute his assets after death.

A trust is a legal relationship created during one's lifetime (inter vivos), or on death (testamentary trust) by a person, the settlor / founder, when assets are placed under the control of a trustee for the benefit of a beneficiary or a specified purpose.

Trusts can either be inter vivos, i.e. formed during the lifetime of the founder, or testamentary, i.e. created in terms of the founder's will. Although it is a recognised legal entity it is not a juristic person (like a company or a close corporation).


Insurance products

We understand Insurance products.

We know which benefits are offered by the different companies and what conditions are attached to these offers. We have access to the latest diagnostic tools to analyse Investment and Insurance portfolios. We can ensure Independent Advice at all times.


Risk Cover - Overhead Expenses


The Overhead Expenses Benefit provides monthly funding for business expenses.This benefit provides you with cover to fund your business overhead expenses while you are disabled or temporarily unable to work.The waiting period is one month.

The benefit is payable for a maximum of 24 months or until the benefit expiry age of 60, 65 or 70 is reached - whichever happens first.


Future cover

calculator.jpgOn each contract anniversary, a new contract, or an increase in cover, may be affected on the life of the life assured for a sum assured equal to the option amount without evidence of insurability.


Tax Efficient Investments

diamond.gifEndowment -

An endowment is an insurance based investment product. You can either pay a monthly premium or a lump sum both of which are invested in a mix of equities, gilts, property and cash.

Endowment policies are tax-effective for high income earners. This is because the fund pays a 30% tax rate, whereas you could pay up to 45%.

Once the endowment reaches maturity you can elect to cash it in or leave the policy running and withdraw tax-free amounts.

Risk Cover - Life

leaving_s.jpgRisk products allow one to provide an income for those left behind, cover any debts and brings liquidity to ones estate in order to settle any estate duties, executors’ fees and other administration costs.


Contact HDO

receptionist.jpgIf your current portfolio is not living up to your expectations please don't hesitate to contact us.