To be our Customers’ most trusted savings and wealth management partner in East Africa

1. OLD MUTUAL KENYA
“To be our Customers’ most trusted savings
and wealth management partner in East
Africa”
Page 1

2. Retail Mass Market

3. COURSE OBJECTIVES
1. Personal financial management
•What is Financial education
•Why is Financial education important
•Financial self awareness goals
•Pillars of personal finance
•Building a personal financial plan
•Budgeting, saving and investments guidelines
•Retirement and estate planning
•Personal balance sheet
•Personal record keeping
2. Principles of Financial management
•Illustration with the BIG 5 animals
3. Financial planning solutions
•Long term savings – retirement & investments
•Dependent education
•Life cover
3

4. About Old Mutual
•
•
•
•
Old Mutual was founded in 1845 and we have since expanded from our origins in
South Africa through organic growth and strategic acquisitions.
Old mutual is among the largest and most established and trusted financial service
providers in the world with over 40 years experience in managing low risk high return
products.
We operate through market leading international brands including Old Mutual,
Skandia, Nedbank and Mutual & Federal.
OMK offers products in four areas: Long-term savings, asset management, banking,
short-term savings and stockbrokerage.
•
We are in over 34 countries { Africa, Europe, America and Asia } and have
over 54,000 employees. We are based in London.
•
Old Mutual operations started in Kenya in the late 1920’s and were directed
from Salisbury (Harare) until 1930, when a branch was established in Nairobi
where it is now amongst the top ten insurance companies.
•
Old Mutual restarted operations again in 1995.
Page 4

5. Group Structure
Page 5

6. OLD MUTUAL GLOBAL PRESENCE
Presence in over 34 different countries
Over 165 Years of Investment Wisdom!

7. WHAT IS FINANCIAL EDUCATION
This the ability to understand personal
finances and allow an individual to make
informed and effective decisions in securing
their future.
•People think choosing the right investment savings
plan is more stressful than a visit to the dentist!!!!!!!!!
Page 7

8. WHY IS FINANCIAL EDUCATION IMPORTANT
• Achieve personal Goals
–
–
–
–
–
Buy a home
Fund the children’s education
Ensure there’s an income when we retire
Peace of mind to enable us be productive at work places
Plan for holidays
• Have cash flow
– To balance our budget
– Financial freedom- get out of the rat race
• Cater for contingencies
– To ensure you have a nest egg when out of a job/emergency
– Take care of our financial obligations after death/disability
– Plan for Health care needs
Page 8

9. MONEY CYCLE
Three key pillars that are critical to planning
Accumulation
Growth &
Conservation
Distribution
Page 9

10. COMMUNITY FINANCIAL EDUCATION HEALTH CHECK
From research, it shows that:
 91% of East Africans spend more than they earn
 70% don’t have income on retirement
 71% of adults know nothing about investments in
equities, bonds, stock market.
 Newly employed people don’t have the ability to choose
and manage credit card or save for retirement.
 67% of Kenyans claims to know the concept of
compound interest while a partly 18% have an idea.
 Highly educated consumers with high income levels can
be just as ignorant about financial issues just as less
educated, lower income consumers.
Page 10

11. INDIVIDUAL FINANCIAL HEALTH CHECK
•
Do you have financial goals?
•
Do your expenses exceed your income?
•
Do your expenses always increase when you get a pay rise?
•
How much of your loans are financing a) consumer goods/services b)
development projects?
•
Are you carrying assets (future) or liabilities
•
Do you mind the banks or your business ?
•
Are you a messenger to your cashier or the manager?

12. PERSONAL NET WORTH STATEMENT
CASH/EQUIVALENT
KSHS
LIABILITIES – LONG TERM
Current account balance
Savings account balance
Other cash
Cooperative loan
Company loan
Bank loan
Shylock loan
Car loan
Mortgage loan
Development (self/dependent education)
Monthly family maintenance
INVESTED ASSETS
Cooperative shares
Kiosk
Plot
Shares
Savings/retirement plans
Investment plans
LIABILITIES – SHORT TERM
Kiosk bill
Bar bill
I owe you
Car repairs
Hospital bills
Credit card
USE ASSETS
Upcountry house
Town house
Household property
TOTAL LIABILITIES
PERSONAL PROPERTY
Family business
Chama/Group
TOTAL ASSESTS
TOTAL ASSESTS
TOTAL NET WORTH
KSHS

13. HUMAN LIFE CYCLE- LIVE WELL, RETIRE SECURE
CHILDHOOD 8-21 primary
Secondary/college
SENIOR CITIZEN &
GOLDEN YEARS 71+……
death

14. LEVELS OF FINANCIAL STATUS

15. PROGRESSION IN FINANCIAL LEVELS
1.Courage
1.Courage
2.Self honesty
2.Self honesty
3.Delay
3.Delay
gratification
gratification
4. planning
4. planning
5.Taking action
5.Taking action

16. JOURNEY TOWARDS FINANCIAL INDEPENDENCE

17. PERSONAL BALANCE SHEET- MONTHLY
INCOME
KSHS
EXPENSES
Salary
1. Basic
- Tithe/Offering
-Tax
-Food
-Rent
-Dependent education
-Transport
-Clothing
-Utilities:((electricity/water/paraffin)
Extra work
2. Secondary
Entertainment
Personal improvement
Relationships
Community
Assets
3. Liabilities
Loan/Sacco repayment
TOTAL
KSHS
TOTAL
SAVINGS
> + 20%

18. ACTIONS FROM YOUR PESONAL BALANCE SHEET
•
It balances
•
It does not balance now and I don’t intend to make it balance
•
It does not balance now, but will make it balance after 3-6 months
And I will take the following actions to achieve the balance
1.
2.
3.
4.
5.

19. THREE TYPES OF ASSESTS
• Profitable business
• Paper assets:
- Savings plan
- Retirement plan
- unit trusts
- Shares
• Real estate

20. THE SEVEN LIFE CASHIERS
•
God
•
Tax man
•
Community
•
Life style maintenance
•
Personal improvement
•
Relationships
•
Yourself ( 20% monthly savings)

21. Principles of Financial Management
•
Financial Education
Old Mutual School Of Money… “The Big 5 Secrets of Money Management”
 The Secret of the Lion
The lion eats first, ahead of the pack. You too should “eat first” by
having an automatic deduction from your salary or wages.
 The Secret of the Leopard
The leopard never lets its prey out of its sight, patiently planning and
moving towards its goal, never backing off or giving up
 The Secret of the Elephant
The African elephant never forgets. Its knowledge, aided by its
memory, is its power. It remembers the places it has been, and
uses this knowledge to plan its future.
 The Secret of the Rhino
The rhino’s weapon is to charge. When threatened, it looks for the
biggest threat and charges, taking swift control of the situation.
Confront your debt and charge it down
 The Secret of the Buffalo
The mighty buffalo is deliberate and steady, waiting all day for the hot
African sun to pass. It steadily grows and protects its herd, knowing
its strength and future are in its numbers.
Page 21

22. OMLAC Product Offering
EDUCATION SAVINGS PLANS
Rafiki Halisi Education Plan:
A unit linked investment plan that offers compulsory life cover 10 times the monthly premium and
pays out the accumulated fund value at maturity.
Features and benefits:
•There is choice between Money Market or Balanced Funds respectively.
•Life cover benefits which is ten times the monthly contribution
•Waiver of premium on disability or death for up to Ksh 20,000 per month for a maximum of 10 years
• It has partial maturity benefits that is available four years prior to maturity.
INVESTMENT SAVINGS PLANS
Rafiki Halisi Investment Plan:
Similar to the Education Plan above, the Rafiki Halisi Investment Plan is a unit linked investment plan
that offers compulsory life cover ten times the monthly premium and pays out the accumulated fund
value at maturity.
Features and benefits:
•There is choice between Money Market or Balanced Funds respectively.
•It offers 100% accidental cover immediately.
•Compulsory life cover which is 10 times the monthly contributions.
Page 22

23. OMLAC Product Offering…contd.
LIFE INSURANCE
An individual whole life product sold with an age – banded premium rate structured and minimal
underwriting.
Features and benefits
a) Cover to the main member plus gives an option to have the spouse and children { up to a maximum
of four children} covered at an additional discounted rate.
b) A 50% money back benefit will be available if the lives assured survive a five year period provided the
policy has been in force for the five years.
c) 100% accidental cover available immediately
d) A range of benefits starting from Ksh 50,000 up to Ksh 1 Million available for every a[pplica
Page 23

24. PERSONAL RECORD KEEPING ORGANIZER
ITEMS FOR STORAGE IN BANK SAFE
FOR STORAGE IN HOME ACTIVE FILE
PERSONAL
CURRENT INCOME/EXPENSES DOCUMENTS
-Family birth certificates/adoption papers/death certificates
-Marriage/divorce papers
-Passports
-Education certificates
-Unpaid bills
-Bank /credit card statements
-Brokerage account statements
-Unit trust /mutual funds/investments/insurance statements
OWNERSHIP
CONTRACTUAL DOCUMENTS
-Title deeds/home plans/surveys/Home inventory
-Vehicle log books
-Business partnership agreements/Trust/stock/bond certificates
-Loan statements and payments receipts
-Equipment manuals and guarantees
-Receipts of assets bought and copies of agreements entered into
OBLIGATIONS AND CONTRACTS
PERSONAL
ESTATE PLANNING DOCUMENTS
LIFE LONG REFERENC DOCUMENTS
-Wills
-Trusts deeds
-Powers of attorney
-Letters of instruction
-Guardianship arrangements
-Prior years tax returns
-Prior business records
-Prior family heath records
-Proof of payments of debts and contractual obligations met
-Prior bank statements
-Mortgage charge documents
-Insurance /investment policies
- Retirement/pension plan documents
-Employment /education records and certificates
-Inventory and spare key to bank safe deposits
-Copies of wills/estate planning and receipts of assets
-Family health records/important phone numbers/emergency info
-Tax return /mortgage /rental property/business expenses receipts

26. Old Mutual Holdings
Ltd
Thank You
contacts
peris.kamau@oldmutualkenya.com
Cell phone No. 0725 531 117