2023 GIP L&D QUIZ SHOWDOWN

Select the correct answer/s

Why might an investor choose to invest and take money offshore? (there may be more than one correct answer)

• They are concerned about political risk

• They are wishing to hedge against a depreciating currency

• They wish to diversify their portfolio

• They want to keep spread their investments across different local assets  

Answer True/False

The INN8 offshore investment platform does not charge VAT

• True

• False

Willem's offshore investment is $300 000 . What % platform fee will he pay ?

• 0.5%

• 0.25%

• 0.15%

• 0.57%

Having originally invested $500,000 on the INN8 offshore platform, Jarrod's investment is now worth $550,000 after 6 months. His adviser charges 0.5% fees and wants to know how much will be kept in his cash account to cover fees?

• $10 ,000 - 2% of his original investment

• $11,000 - 2% of his current investment

• $10,000 - it is this value for everyone

• $2,750 – The fee to cover the adviser’s ongoing fee

Mrs Malai recently passed away. She had a living annuity with her daughter Jane nominated as the beneficiary. Select the correct options that Jane has as a beneficiary of the living annuity:

• Buy her own annuity with the proceeds.

• Withdraw the full amount as a lump sum which will be subject to any tax payable.

• Choose to receive part of the annuity as a cash lump sum and purchase an annuity with the balance, subject to any tax on the lump sum.

• Transfer the investment into her employers’ pension fund as the source of the investment was originally a pension fund in her mother’s name

Mrs Msina has a living annuity and has nominated a company as the beneficiary. Mrs Msina has passed away and the company wants to know which options are available to them?

• Purchase an annuity with the proceeds.

• Companies can only withdraw the full amount as a lump sum which will be subject to any tax payable.

• Choose to receive part annuity and part lump sum with the proceeds of the annuity, subject to any tax on the lump sum withdraw

• Keep the money in the deceased living annuity account and continue receiving annuity income payments

An adviser wants to transfer a guaranteed annuity from Liberty into a living annuity at INN8.  Select the correct option

• The client can transfer the investment and the adviser must submit this on the web.

• Guaranteed annuities cannot be transferred into living annuities.

• The guaranteed annuity first needs to be paid out in cash and then transferred to a living annuity at INN8.

• The guaranteed annuity can only be transferred to a living annuity if the annuity income will be kept the same.

A client has three living annuities at INN8 and wants to understand how she is being taxed. Select the correct option

• The tax is calculated for each living annuity separately.

• Tax will be aggregated across all the clients living annuities.

• Living annuities are not taxable so no tax will ever be withheld.

• Tax is only calculated when the beneficiary takes a withdrawal in the event of death

Lebo is taking a withdrawal before retirement of R150 000. Which tax would she need to pay when accessing the money?

Select the correct option

• Tax on capital gains made

• Tax on interest earned

• Tax on dividends earned

• Tax on real estate income earned

• Tax on the withdrawal value

Cyril has one retirement annuity and three pension preservation funds at INN8. He wants to transfer the three preservation funds into the retirement annuity. 

Select the correct option

• He cannot transfer his preservation funds into his retirement annuity.

• He can only transfer pension preservation funds into a retirement annuity.

• He can transfer all the preservation funds and combine it into the retirement annuity.