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# Domino is 4 0 years old and is married out of community of property with the exclusion of the accrual system to Dolly ( 3

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Domino is $40$ years old and is married out of community of property with the exclusion of the accrual system to Dolly $(35).$ They have one child, Domonique, who is $11$ years old. Domino resigned from his job at the end of $2020$ to start an upholstery business, JT Trading $($Pty$)$ Ltd$,$ in which he now holds a $40\%$ shareholding. His brother$-$in$-$law Terrence holds $20\%$ shareholding in the business.The remaining $40\%$ stake is held by his friend Bryan. The business was valued at R$10$ million in March $2023.$ He intends on selling the business at retirement and using the proceeds towards his retirement provisions.Dolly is employed at a private company that consults for state$-$owned institutions. Although she earns quite a substantial monthly salary, the company does not provide for medical aid or any retirement funding. When Domino resigned from the Retire Right Pension Fund in $2020,$ he withdrew an amount of R$500,000$ from the pension fund to partly fund his business. He transferred $50\%$ of the balance of the withdrawal benefit to a Pension Preservation Fund and the rest to a Retirement Annuity. The upholstery business makes no provision for retirement savings. Domino withdrew an amount of R$22,500$ from a provident fund when changing employment in $2013,$ as he could withdraw that amount tax$-$free at that time. Domino also received R$100,000$ after tax as an unclaimed benefit from a previous employer's pension fund in $2021.$ The current value of his pension preservation fund is R$2\text{}000\text{}000$ and his retirement annuity is valued at R$2\text{}500\text{}000$ where he makes a monthly contribution of R$2\text{}000$ per month.Domino plans to retire at age $60.$ At that stage, he would like to purchase a new motor vehicle and asks you to budget for a Toyota Corolla, which currently costs around R$400,000.$ In addition, Domino will sell his business interest at retirement. Domino approached you to assist him with some financial advice on the recommendation of his friend Bryan. Domino has heard that property prices are set to skyrocket in the next few months. Domino's father always told him that a fixed property is the best investment you can possibly make, as it is tangible and rental income is passive income. He also knows property is always a good investment when interest rates are low.Domino wants to withdraw an amount of R$700,000$ from his Pension Preservation Fund and invest it in either a physical property, property shares, or a property fund. He needs your assistance in deciding which route to follow. During the first meeting, Domino also agreed to a retirement analysis and some advice on budgeting.ASSUMPTIONS$*$ Domino wants to retire at age $60$ and asks you to plan for a $20-$year income period after retirement.$*$ Domino will need an income of R$850,000$ per annum after retirement.$*$ All outstanding debt would have been settled by the time he retires at age $60.*$ All regular investments, instalments, and income are payable annually in advance.$*$ The net return on investments before retirement or death is $9\%$ per annum.$*$ The net return on capital invested post retirement or death is $9\%$ per annum.$*$ The inflation rate is $6\%$ per annum throughout the planning term.The value of the upholstery business will increase in line with inflation per annum.$*$ Domino's risk profiling shows him as a conservative and risk$-$averse investor.QuestionDomino is considering withdrawing an amount of R$700,000$ from his Pension Preservation Fund to invest in property. Calculate the nett withdrawal amount Domino will receive.Show all your calculations

Domino is $40$ years old and is married out of community of property with the exclusion of the accrual system to Dolly $(35).$ They have one child, Domonique, who is $11$ years old. Domino resigned from his job at the end of $2020$ to start an upholstery business, JT Trading $($Pty$)$ Ltd$,$ in which he now holds a $40\%$ shareholding. His brother$-$in$-$law Terrence holds $20\%$ shareholding in the business.The remaining $40\%$ stake is held by his friend Bryan. The business was valued at R$10$ million in March $2023.$ He intends on selling the business at retirement and using the proceeds towards his retirement provisions.Dolly is employed at a private company that consults for state$-$owned institutions. Although she earns quite a substantial monthly salary, the company does not provide for medical aid or any retirement funding. When Domino resigned from the Retire Right Pension Fund in $2020,$ he withdrew an amount of R$500,000$ from the pension fund to partly fund his business. He transferred $50\%$ of the balance of the withdrawal benefit to a Pension Preservation Fund and the rest to a Retirement Annuity. The upholstery business makes no provision for retirement savings. Domino withdrew an amount of R$22,500$ from a provident fund when changing employment in $2013,$ as he could withdraw that amount tax$-$free at that time. Domino also received R$100,000$ after tax as an unclaimed benefit from a previous employer's pension fund in $2021.$ The current value of his pension preservation fund is R$2\text{}000\text{}000$ and his retirement annuity is valued at R$2\text{}500\text{}000$ where he makes a monthly contribution of R$2\text{}000$ per month.Domino plans to retire at age $60.$ At that stage, he would like to purchase a new motor vehicle and asks you to budget for a Toyota Corolla, which currently costs around R$400,000.$ In addition, Domino will sell his business interest at retirement. Domino approached you to assist him with some financial advice on the recommendation of his friend Bryan. Domino has heard that property prices are set to skyrocket in the next few months. Domino's father always told him that a fixed property is the best investment you can possibly make, as it is tangible and rental income is passive income. He also knows property is always a good investment when interest rates are low.Domino wants to withdraw an amount of R$700,000$ from his Pension Preservation Fund and invest it in either a physical property, property shares, or a property fund. He needs your assistance in deciding which route to follow. During the first meeting, Domino also agreed to a retirement analysis and some advice on budgeting.ASSUMPTIONS$*$ Domino wants to retire at age $60$ and asks you to plan for a $20-$year income period after retirement.$*$ Domino will need an income of R$850,000$ per annum after retirement.$*$ All outstanding debt would have been settled by the time he retires at age $60.*$ All regular investments, instalments, and income are payable annually in advance.$*$ The net return on investments before retirement or death is $9\%$ per annum.$*$ The net return on capital invested post retirement or death is $9\%$ per annum.$*$ The inflation rate is $6\%$ per annum throughout the planning term.The value of the upholstery business will increase in line with inflation per annum.$*$ Domino's risk profiling shows him as a conservative and risk$-$averse investor.QuestionDomino is considering withdrawing an amount of R$700,000$ from his Pension Preservation Fund to invest in property. Calculate the nett withdrawal amount Domino will receive.Show all your calculations

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