The Background: Andrew (primary income earner) and Sarah left behind busy corporate lives in the city and relocated to a tranquil coastal town five years ago. With a significant and relatively complex balance sheet – comprising multiple retirement funds, offshore investments, and local cash – they were looking for more than just investment management. They needed holistic advice that could support their retirement income needs, reduce their long-term tax burden, and position their estate for the next generation.
🧭 Case Study: From City Life to Coastal Simplicity – How We Helped Andrew and Sarah Secure Their Retirement and Legacy
Client Segment: Family Office
Client Profile: Recently retired couple, early 60s
Assets: ±R25 million in local retirement funds, USD 2 million offshore, R6 million local cash
Monthly Living Needs: R80,000 net
1. Structured two living annuities with 2.5% and 4% drawdowns
2. Moved USD 2m into offshore wrappers, reducing CGT & executor fees
3. Built a 6% dividend-yielding share portfolio for income
4. Updated estate planning across local and offshore assets
5. Integrated tax experts to clean up and future-proof compliance
6. All under a flat monthly fee – no % of assets charged
We split their retirement funds into two living annuities:
1. Annuity A: 2.5% drawdown rate, aligned to an Inflation +3% investment strategy
2. Annuity B: 4.0% drawdown rate, aligned to an Inflation +5% investment strategy
This structure provided the following benefits:
Combined starting income: ±R960,000 p.a.
Read More: Understand Living Annuities in South Africa, How They Work, and the Pros/Cons
We exited their existing (underperforming) offshore holdings, incurring R500,000 in upfront CGT, and reinvested the USD 2 million via offshore wrappers. The benefits were substantial:
1. CGT rate dropped from 18% to 12%
2. Saved executor’s fees of ~4% — equivalent to R1.44 million on their offshore capital (USD 2 million at ZAR18/USD)
3. Avoided situs tax risk on US and UK shares they held directly (particularly problematic because their US shares were valued at over USD 60K which can attract US estate costs on death of 40%)
4. Consolidated tax reporting, removing administrative headaches
Importantly, the new wrapper portfolio is managed under a long-term USD Inflation +6% mandate (target return ~9% p.a.).
Assuming 10% withdrawals every 5 years for lifestyle needs, the total CGT savings due to wrapper use would be:
After 5 years, the wrappers also unlock tax-efficient withdrawals, providing optional income top-ups.
Further Reading: Offshore Investing and its Benefits for South Africans
They’re now comfortably exceeding their R80,000 p.m. net targeted income goal in retirement in a sustainable manner.
We facilitated a comprehensive estate planning review:
1. Wills now clearly reflect both local and offshore assets
2. Beneficiary nominations across wrappers and annuities were revised and aligned
3. Executor roles were clarified and liquidity needs modelled
Read More: Your Complete Guide to Estate Planning in South Africa today.
Helped their adult children:
We brought in a tax expert to:
We considered an offshore trust structure, but concluded it wasn’t necessary. The offshore wrapper structure delivered 95% of the benefits at a fraction of the cost, without the ongoing complexity.
Andrew and Sarah now benefit from:
1. Reliable, tax-efficient income
2. Proper offshore structuring with ongoing flexibility
3. Clean estate plans across jurisdictions
4. Lower stress, knowing their children are on track too
Further Reading: A Retiree Client With a Less Complex Balance Sheet With a Fee That Reflects That
Andrew and Sarah have a total balance sheet of approximately R67 million, spanning retirement assets, offshore investments, and local holdings. We serve them on a flat fee of R120,000 per annum (reviewed annually)— a fee determined by the time, complexity, and strategic input required, rather than the size of their portfolio.
That flat fee equates to just ~0.18% of their total assets, compared to the ±0.50% p.a. charged under traditional AUM models — which would amount to ±R335,000 p.a. A difference of more than R200,000 per year.
But our value goes far beyond cost savings:
What does our fee deliver — beyond personalised advice, structure, and ongoing partnership?
Executor’s fee savings: ±R1.44 million (by using offshore wrappers)
CGT savings: ±R128,000 over 20 years (wrapper tax efficiency)
Tax savings: ±R75,000 p.a. (via smart local structuring and income splitting)
AUM fee savings: ±R215,000 p.a. (versus traditional fee models)
Portfolio alpha: By benchmarking performance, replacing underperforming managers, and aligning portfolios to clear mandates, we’ve added an estimated 1–2% p.a. in net performance — which, on a R67 million portfolio, compounds to millions in long-term value
💬 “We finally feel like everything is under control — and more importantly, that someone’s thinking about what comes next, looking after our best interests
Here are some of the most common questions we get from clients when it comes to flat-fee advice, offshore structuring, investment performance, and tax efficiency. These FAQs are designed to help you understand the thinking behind our strategies — and how they might apply to your own financial journey.
Read More: Henceforwards Unique Flat Fee Approach
Carl-Peter is a Certified Financial Planner and director at Henceforward. With over 20 years of experience advising high-net-worth individuals and families — both in South Africa and international financial centres — he specialises in retirement planning, offshore investment strategy, and holistic wealth management. His focus is on delivering clarity, simplicity, and long-term value through a transparent flat-fee model.
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