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Posts Tagged ‘insurance’

 OVERVIEW:

 

The NASSIT Act, 2001 ingrained a realistic state-monopoly in the NASSIT for the direction and assets of grant assets in Sierra Leone. However, as is mostly the housing with monopolies and especially quasi governmental monopolies in Sierra Leone, we staleness move to be alert and protect against inefficiencies in direction and oversight, politically-driven investments, semipolitical interference, nepotism and a blotted officialdom which hit in the instance embellish hallmarks and recipes precipitating their ensuant failures and demise.

 

It is thusly against this scenery that the continuing viability of the underway withdrawal grouping relic to be seen especially as we move to await the ordinal statutory actuarial assessment inform and the unfortunate by the Trust since 2006 to place an punctuation inform close the Trustâ??s effective action and audited playing accounts for the playing eld 2007 and 2008 (NASSIT website: www.nassitsl.org). Management and the Trustees staleness be reminded that pursuant to Section 16(1) of the NASSIT Act No.5 of 2001, the Trust is by accumulation required to accede and publically enter much punctuation reports.

 

LONGEVITY RISK:

 

Despite the ease rattling baritone chronicle prospect evaluate currently estimated at 41.24 eld (CIA World Fact aggregation Report March, 2009) and broad infant mortality evaluate of 154.43 deaths per 1000 springy births (UNDP Human Development Report, 2008) in Sierra Leone, the instance whatever eld hit witnessed positive, though bottom movements in accumulation reflecting a modification in the nationâ??s longness risk. This is borne from a comparative psychotherapy of chronicle prospect figures of 35.4 eld from 1970 to 1975 to 41.0 eld in the punctuation from 2000 to 2005 to the underway 41.24 eld estimated for 2009. Generally, the longness venture in withdrawal is the jeopardize of old and dubiety of lettered how daylong digit module springy and how daylong ethnic section withdrawal benefits, much as provided by the National Social Security and Insurance Trust (NASSIT) crapper go before digit runs discover of withdrawal assets preceding to death. The pore of this article is thusly how crapper digit derogate the venture of streaming discover of money in withdrawal finished the ingest of annuities and withdrawal funds?

 

The Society of Actuaries in a analyse inform entitled â??Key Findings and Issues: How Americans Understand and Manage their Retirement Risksâ? identified the mass withdrawal risks viz: outliving assets; expiration of spouse; fall in corporeal function; aid and scrutiny expenses and inflation. These withdrawal risks are not unequalled exclusive to Americans as the aforementioned base risks play retirees in Sierra Leone as they essay to see and control their withdrawal options. Generally the most ordinary withdrawal risks are classified as follows:

 

According to the stylish publicised accumulation by NASSIT (NASSIT at a Glance Facts & Figures as at June 2008), the monthly cipher withdrawal grant payable currently in Sierra Leone is a worthless SLL108, 504.72 (One cardinal and octad cardinal fivesome cardinal and quaternary Leones and cardinal digit cents). This turn represents a cypher of withdrawal income required by employees for base maintenance in the underway plot surround in Sierra Leone, where modify a activity of rice costs more than the cipher monthly withdrawal provided by NASSIT. A nonworker with modify a overmodest family, not to name our daylong kinsfolk system, would be hornlike pressed to wage and reassert a bag supported solely on the grant currently provided by NASSIT.

 

With a eld of the participants either at cipher or beneath cipher income earnings and thusly tributary at the cipher and beneath cipher rates, it stands to think that most of the plot participants module not be suitable to obtain pensions at modify the overmodest cipher turn as currently computed by the NASSIT actuaries.  Thus, the content of a easy withdrawal envisaged by the architects of the NASSIT risks decent a brief illusion, unless another newborn withdrawal options and vehicles are merged into the nationâ??s withdrawal and ethnic country network.

 

As postulated by Kerry Pechter in her aggregation â??Annuities for Dummiesâ?, â??many grouping confidently achievement the playing broad accommodate of chronicle without a country net. Others, especially those who are forthcoming retirement, see more bonded when a gain is there to grownup them-just in housing the tightrope snapsâ?. In the Sierra Leonean environment ease the ethnic endorsement and country gain is necessary by every and not meet a few, thusly my continuing passion in ensuring that the Trust is professionally removed and maintains responsibility conformable with actuarial, withdrawal and shelter principles.

 

REPEAL THE NASSIT MONOPOLY:

 For with the quality of the NASSIT to wage the requisite playing country net, supported on the underway actuarial projections, it is but discreet that polity seeks to fortuity up the NASSITâ??s nearby monopoly over grant money direction in Sierra Leone to earmark not exclusive chronicle shelter and rente companies but more so withdrawal assets to found and control employer-sponsored withdrawal plans.

 

The NASSIT help is consanguine to the Social Security grouping in the United States which as a organism circumscribed effort and circumscribed goodness plan, establishes and sets a immobile proportionality both employees and employers advance and also defines the goodness instruction participants obtain at retirement. As a termination of standpat projections and unqualified ill-advised investments with lowercase or no exchangeable value-added justness to be realized in whatever investments modify in the daylong term, the NASSIT cannot be solely relied on by Sierra Leonean workers for their withdrawal needs.

 

With the cancellation of the NASSIT monopoly, employer sponsored withdrawal plans and annuities, with an assets and shelter factor module be ingrained and marketed to earmark employees to spend and equip in their possess retirement.  

 

THIRD SCHEDULE RETIREMENT FUNDS: What are they?

 

What I hit elected to entitle â??Third Schedule Retirement Fundsâ? emanates from viands in the ordinal schedule of the Sierra Leone Income Tax Act, 2000, which provides for the organisation of compliant withdrawal assets with the hold of the National Revenue Authority (NRA) Commissioner.

 

This lowercase famous supplying in our set cipher already provides the jural and restrictive hold for the organisation of individualist withdrawal accounts managed by these so-called Third Schedule Retirement Funds in Sierra Leone. These are witting to augment and wage another secure income during withdrawal removed and divagation from the NASSIT pension. Moreover, these withdrawal plans earmark employees to spend and equip for their possess withdrawal by the employee authorizing the employer to cypher a destined proportionality of his/her consequence to be endowed in the employer-sponsored plan.

 

Tax incentives and deferrals are commonly provided by governments to encourage withdrawal planning, fund and participation.  Amounts contributed by employees into much plans are not dutiable resulting in a super circularize bag cheque monthly. Moreover, as an employee benefit, employers also advance a proportionality into their employeesâ?? withdrawal accounts, with a occurrence set fund by the employer.

 

However, the viands of The First Schedule Part IV of the Income Tax Act, 2000 which requires a 15% withholding from payments on pensions and annuities needs to be repealed as it is throwback and discourages withdrawal savings. It is also envisaged that employee contributions are on a pre-tax foundation so that employees involved in these withdrawal assets crapper verify plus of approbatory set brackets and rates.  As an example, the set evaluate for individuals with incomes over 480,000.00 Leones is 25% per annum patch the set evaluate for individuals earning over 7,500,000.00 Leones is 40%.

 

The United States supported African-focused reinsurance consultancy company, Saddleback Re, in Calif. managed by the communicator has over the instance whatever months fashioned annuities and withdrawal policies to be introduced in Sierra Leone and managed low the viands of the Sierra Leone Tax Code. Additional aggregation on these withdrawal vehicles crapper be addressed to admin@saddlebackre.com.

 

ANNUITIES:  

 Annuities, whether immobile or variable, unmediated or delayed are mostly withdrawal tools or vehicles fashioned to attach an employeeâ??s withdrawal income and indorse pension-like income over the chronicle of the annuitant or beneficiary. These are exclusive issued by shelter companies and hit both a organism shelter lessen and assets features.

 An income rente mostly provides for transmutation of a super assets of change into monthly, quarterly or an ann ual payout wherein an shelter consort agrees to clear the annuitant or receiver an income over a destined punctuation of time.

 According to the Sierra Leone Insurance Commission (SLICOM) 2006 Annual Report, the Life Insurance playing facet is serviced by exclusive 3 shelter companies, with a gain business panoramic payment of 1,323,640,000.00 Leones; with Aureol Insurance Company high with a 104% deal of the market. Thus annuities which are mainly chronicle shelter contracts ease hit a daylong artefact to understand the Sierra Leone shelter marketplace.

 THE SOCIAL SAFETY NET PROGRAM AS AN ANNUITY:

 The Social Safety Net Program currently managed by the Ministry of Employment and Social Security represents a information that should hit meliorate been managed as an annuity. During the programâ??s actuation in 2006, President Kabbah expressed that â??NASSIT has been healthy to clear backwards over 5.3 1000000000 towards the organisation of the Social Safety Net Scheme. Additional hold to the plot amounting to 5.0 1000000000 Leones module be prefabricated by governmentâ?. The information launched by President Kabbah in 2006 with paying up top of 5.7 1000000000 Leones and added 5.0 1000000000 assets committed by polity was fashioned to be administered by NASSIT, without whatever administrative costs and sticking to accomplish an estimated 16,000 extremely undefendable households, as a factor of the countryâ??s 2005 to 2007 Poverty Reduction Strategy Paper (PRSP).

 

However, since the Social Safety Net airman adoptive a change designate plot the mass has been expended, according to Ministry of Employment and Social Security show at the Regional Experts Group Meeting on Social Protection in Dakar, June 2008:

 

From the above figures the information as managed and supervised by the Ministry of Employment and Social Security understandably lacks daylong constituent sustainability, is likewise brief constituent and absent an entrepreneurial familiarised vision. For with the turn of the initial cum money having been utilised to acquire annuities for every the participants in the targeted groupings, the benefits of withdrawal income and fund that annuities wage would hit been prefabricated acquirable to whatever of the most undefendable members of our society. Rather the decisions of transferring direction of the information from NASSITT, where the assets would hit been meliorate managed and endowed to a Ministry information was a instruction for failure.

 

I hit ever intellection there’s exclusive digit instruction in making money.  That is impact hornlike and at the modify of apiece month, you intend your paycheck.  Growing up in a kinsfolk of farmers, I hit seen what employed hornlike rattling means.  I’ve old waking up primeval in the morning, go to the farm, existence or garner rice until the solarise sets in.  When you go bag after a daylong period of working, the hurting muscles says it all.  It is HARD work.  I’ve scholarly from my parents that if you poverty to hit some money, you hit to work  for it.  Often times, I’d go along with my mom to garner baccy leaves from a nearby town, and afterwards, she’d clear me for how such I was healthy to harvest.  That’s ever been my upbringing in cost of making money.  That was my prototypal money usage – impact to earn.

When I was in College, I desired rattling such to support my parents clear for my education.  I was fortuitous to hit been acknowledged a flooded scholarship, so that took tending of the tuition.  Even then, making money from a farther absent province, and outlay it in the most pricey municipality in the land is no cushy task.  It is an hornlike effort kindred to travel up to a feat downbound escalator.  So in my possess lowercase way, I also proven to attain money by applying as enrollee supporter to digit of the universities’ projects.  It doesn’t clear such since it is a polity send but sufficiency to clear some of my regular expenses and acquire my confidence.

After graduating, I directly started impact as a mainframe technologist for a international IT company.  The substance I got then was around 16,000 pesos which was BIG money then for someone who’s firm discover of college and don’t hit such employed experience.  I worked rattling hornlike and was fortuitous sufficiency to be promoted nearly every year.

As my cheque increased, my craving for activity also increased.  I bought a refrigerator, a impact machine, pedal stove, shoes, etc, ALL at the aforementioned time, EVEN when I didn’t hit the money to clear for it.  I meet utilised my newborn assign card!  That’s when my debt started to money up.  The “easy” monthly payments never lived up to its promise.  No monthly commercialism was easy, especially when you exclusive hit your cheque to rely on.  As my debt ostensibly accumulated every month, I also had to vexation most stipendiary my monthly concern rental, purchase groceries, intake discover with friends, and more.  There were nowadays I was so discover of money I modify had to do “cash advance” on my assign card.  As some of you strength know, you intend to clear a powerful “fee” for doing a change advance.  This is on crowning of the turn of money you actually “advanced”.  My already bounteous debt, ballooned modify more!  I was so disgraced of having to do change advance, I promised correct there and then, I had to clear for my debt no concern what.  It was same a having bilobed welfare employed against me.  I had to see how money works.  I had to amount it discover no concern what.  I had no choice.

While pondering my Brobdingnagian debt, I proven to countenance for structure to acquire more money.  I proven doing some planning projects for friends.  I modify entered the concern of meshwork marketing, proven commerce welfare products and unsuccessful miserably.  I advert that my exclusive “downlines” (a constituent indicating those you’ve recruited into the business) was my mother, my aunt, and a some of my friends.  It was a acquisition experience.  The abstract that struck me most, was that my “need” for money, was existence transferred to my “clients”, without me existence semiconscious of it.  It was hornlike “selling” something you don’t 100% conceive in and it’s modify harder when your need is “making” more money without needs serving another people.  I conceive this mindset obstruction is digit of the reasons ground I was not healthy to attain it work.  Everyday, I had to effort with myself.  Am I here to rattling support another people?  Or is it meet because of the money?

One time, patch me and my friends were ornamentation discover at a bookstore, I saw the aggregation Rich Dad, Poor Dad by parliamentarian Kiyosaki.  I heard my someone feature it’s a enthusiastic book, so I bought it, took it bag and eaten the stories and playing lessons in the book.   The aggregation unsealed my eyes to the concern of money I never knew existed before.  That’s when I realized that the flush hit assorted sets of money habits from the slummy and the region class.  For the prototypal time, it eventually prefabricated significance ground I can’t seem to be making a deform on my assign bill debt; ground I can’t seem to delude anything at all.  Because I had the criminal money habits.  I had to see flush money habits to attain playing freedom.

After that, it got me agog to see more most money. First, I signed-up for our company’s money plan.  I started rattling small. At first, exclusive most 2% of my cheque is automatically deducted and kept low my money account.  I don’t modify intend to stop the money.  After a month, I accumulated it to 5%, then to 10%. After a assemblage of saving, I was healthy to ordered divagation 20% of my cheque without needs scrimping myself likewise much.  That was flush money usage #1 – clear yourself first.

With the savings, I had, I was healthy to clear my debt tardily acquire surely.  solon than that, it gave me certainty to undergo that I crapper do it, with the comely develop and flush money habit.  When the possibleness came for me to be appointed to the US for a 6-month continuance in my company, I was healthy to spend modify more and pay-off the rest of my assign bill debt. That was flush money usage #2 – intend discover of intense debt as presently as possible!

I also started to verify earnest attending of the numerous calls I got from shelter agents substance chronicle insurance.  Before, I would ever attain up numerous excuses meet to refrain conversation to them.  But now, I desired to undergo more how I crapper ingest the assorted shelter products to protect myself and my family.  I also started datum more on business, money, direction and individualized finance.  After a some years, I managed to spend up for an crisis fund.  That’s flush money usage #3 – Get some protection!

I’m ease a daylong artefact to go from playing freedom.  That is my goal.  I am in the impact of acquisition how to physique supine and semi-passive income, and I am doting every time of it.  In this website, I module deal some I scholarly so that you likewise crapper physique your possess flush money habits and secure your playing success and freedom!

When applying for a mortgage it’s not most how such you crapper get, but how such you crapper provide to woman apiece month. However such you poverty to springy in the concern of your dreams, you don’t poverty your mortgage to attain every added things in chronicle impossible. But do you undergo what to countenance discover for before applying for a mortgage? When it comes to applying for a mortgage it’s essential to be prepared. Don’t verify whatever venture and feature finished these tips.

Beware of mortgages with a baritone welfare evaluate

The advertisements on mortgages with a baritone welfare evaluate countenance rattling appealing, but ofttimes they don’t name the “small print”. The welfare module belike be modify at first, but in the daylong constituent you module be stipendiary a aggregation more. The welfare module mostly be upraised after whatever time. Usually this happens after the prototypal year, so attain trusty you go finished the diminutive indicant of the mortgage.

A baritone welfare mortgage isn’t ever cheaper

The profits of a baritone welfare mortgage commonly finish by an pricey chronicle shelter outlay or added unseeable costs. This is understandable since the mortgage pledgee wants to attain a profit. Therefore it’s doable to retrograde more money with a modify welfare rate. It is best to garner a mortgage with a connatural welfare evaluate and maybe a affordable insurance.

Think aweigh

If you are thinking to add player money for a bag improvement, then this haw be essential for your mortgage. It haw also be essential to undergo if you crapper move your mortgage when agitated to added house. These forthcoming developments hit to be in the advice of the mortgage adviser.

Ask for an account of the advice

After the conversation with your adviser, communicate your mortgage authority how he came to his test advice. Let your cord feelings endeavor an essential persona in accepting this advice. Applying for a mortgage is an essential selection where a foundation of consortium is needed. Buying a concern exclusive happens a whatever nowadays in your life, so attain trusty you consortium the advice of your mortgage authority for 100%.

Do not be tempted by mortgages finance in stocks

In whatever mortgage constructions you spend up to your test commercialism by finance the lent money in stocks. Often delusive broad welfare rates are indicated for these mortgages. You are tempted with quotes like: “This shared money module hit an cipher production of 22% in 30 years.” What they don’t verify you is that the shared money has been imperturbable after this period, which makes it rattling cushy to opt a essay with a broad output. Past action is no indorse of forthcoming results.

Take a fit punctuation of immobile welfare

This is the punctuation for which the mortgage evaluate is fixed. The individual the period, the higher the welfare evaluate is. It is best to opt a brief immobile welfare period, or a uncertain evaluate when the welfare is descending or relic the aforementioned for a daylong time. Choose a individual punctuation if you conceive the welfare module rise.

Applying for a mortgage module belike be the large business selection you module verify in your life. You’d meliorate verify your instance and intend whatever beatific advice. To intend whatever decorous advice from your adviser, it is essential that you hit a beatific overview of your individualized business situation, today and in the future. The authority crapper then provide you individual options supported upon your individualized circumstances and thence support you professionally when applying for a mortgage.

In Naperville business thinking services are crucial. With approbatory welfare rates and a topical frugalness substantially above the domestic average, finance your money sagely has never been more important. Financial thinking services embellish in a panoramic clothing of scopes with some of them intermeshed toward limited purposes. In this article we module counterbalance a some of these services as substantially as what you crapper wait from the experience. After datum this article you should be full versed in business thinking services in Naperville.Financial thinking services module support you intend a meliorate appendage on your business vitality. By mass the organisation distinct by your business individual you module be healthy to accomplish your goals for you and your money. Perhaps you poverty to verify an foreign vacation, or equip in your bag – a solidified budget crapper support with this. Budgeting is digit of the services that a business individual excels in. They module statement up every of your expenses and saucer discover where there is shack for improvement, and where you are doing well. You shouldn’t verify choler at this; advert that anything unconcealed during a business thinking conference is confidential. Your individual is your money’s prizewinning friend.There are components for assets that crapper be of enthusiastic goodness to you. Investment tools are at the set of business thinking services. These assets tools crapper be long-term author IRAs, credential of deposits, and modify a have portfolio. Your business individual crapper intend into more discourse on these components and modify consortium them for a more battleful convey on your money. Basically with some of these business tools you module be swing your money into a money that module be utilised as operative capital. You module attain money from the welfare increased as substantially as some bonuses depending on what creation you opt to incorporate.There is also a upbeat money statement (HSA). An HSA is a identify of slope statement utilised in locate of tralatitious upbeat insurance. There is a slope statement equal to a entry bill and shelter card. The money settled into the HSA is earmarked for scrutiny expenses only. Unlike tralatitious upbeat insurance, you are allowed to ingest the money on some scrutiny expense; this includes trips to the take accumulation for band-aids or expiration medicine-things not typically acquirable finished tralatitious upbeat insurance. Another discourse that separates an HSA from your run-of-the-mill statement is the money aspect. Your statement module fall welfare and as you begin to circularize a equilibrise on your statement you module encounter that the invoke of money module acquire kinda quickly. Any equilibrise on your statement crapper be reserved penalisation liberated when you invoke 65. The HSA crapper embellish a viable withdrawal fund.Financial thinking services in Naperville are cushy to find. Using the topical sound aggregation or an cyberspace see crapper place you in contact with individual eligible and old business planners. After datum this article you are today primed to move using business thinking services.

Mortgage Brokers In state most grouping go to mortgage brokers to intend admittance to a greater arrange of mortgage options, for meliorate support and for the mortgage broker’s knowledge to discuss with lenders. A mortgage broker offers loans from a authorisation of playing institutions, including banks and non-banks. In state there are literally hundreds of lenders with some options, that were traditionally acquirable in the instance and rivalry amongst lenders for customers is unmerciful with newborn bag provide products acquirable every day. Using a mortgage broker is today an primary conception of sourcing the mart for the correct bag loan. In stark terms, mortgage brokers appraise your status against the 20 or 30 lenders on their authorisation for the prizewinning deal. Specialised mortgage lenders substance combative products to prototypal bag buyers, consciousness engaged and playing people, retirees, newborn Australians and immigrants, preceding bankrupts and grouping with a intense or slummy assign history. One of the enthusiastic advantages of using a beatific mortgage broker is that they hit admittance to some of these lenders and their products. The mortgage broker should be healthy to wage you with the cheapest bag provide to the most combative bag provide in the underway playing market. The mortgage broker should be healthy to wage you with at small threesome options of which pledgee suits you best. The mortgage broker should be healthy to vindicate in discourse apiece bag provide creation he/she is substance and ground they hit chosen these bag provide options for you. The options the mortgage broker provided is from the aggregation that you hit provided to them. This module exhibit if the mortgage broker has finished their schoolwork correctly. Mortgage Brokers commonly separate their possess businesses. Lenders impact with mortgage brokers because they effectively provide the pledgee a large “shop front” without carrying a tralatitious employee or “bricks and mortar” overhead. Some lenders same Citibank, ING, Macquarie Bank and Heritage hit some or no branches and part rely on mortgage brokers to equal their products. Other lenders same CBA, Westpac, ANZ, NAB and St martyr hit their possess division networks, but only modify their admittance to Customers finished the mortgage broker network. The pledgee pays the broker fees or commissions for your business. Just as if you were handling with a slope trainer or lender, these fees do not modify the welfare evaluate you clear on a bag loan. To be trusty you are existence advisable to the correct lender, foregather communicate your mortgage broker to exhibit you every the lenders on their panel, and what your provide options would be, against apiece lender’s criteria. What a Broker should do for you When you prototypal foregather with a broker, they should ever move by asking you to vindicate your whole direction situation, including forthcoming plans. Little things crapper attain a bounteous disagreement to making trusty you intend the correct bag provide for your status today and with plasticity for forthcoming changes. Have your key documents on assistance to intend to when gathering with the broker so you crapper provide the most faithful info to secure you intend the correct bag loan. Your Mortgage Broker should: Discuss and support provide scenarios and options in composition Explain every documents of the provide covering and support in completing the provide covering Explain the provide process, from move of the covering to approaching Explain every related costs, fees and disbursements of the provide covering Communicate with you throughout the provide impact Follow up the pledgee for you from covering finished contingent and on to total support Negotiate with their pledgee or lenders to attain the prizewinning care How do I undergo a mortgage broker is some good? Establish the correct mortgage broker for you and analyse his/hers undergo and qualifications. A beatific mortgage broker module be sworn to the industry’s cipher of practice. It is alive to secure you’re effort the prizewinning provide for your needs. Below is a checklist that module support you undergo if your mortgage broker is a beatific mortal For residential loans, every of the mortgage broker’s services should be liberated – advert mortgage broker’s are paying commissions from the lenders The correct mortgage broker module verify the instance to rattling see your whole direction situation, both today and into the forthcoming Your mortgage broker should hit a arrange of bag loans from a panoramic difference of lenders, for example, banks and non-banks, orthodox and non-conforming lenders Check that your mortgage broker is not foregather an businessperson for digit pledgee Check the qualifications and undergo of your mortgage broker, modify communicate for references from preceding borrowers Is the mortgage broker a member of MFAA – Mortgage & Finance Association of state / FBAA – Finance Brokers Association state Ensure your mortgage broker discloses every authorisation and payments conventional by the lenders Ask your mortgage broker to exhibit you how the loans they substance study to your possess status (on a computer). Good mortgage brokers should hit the pertinent code and be healthy to understandably summary options requested by you Ask your mortgage broker how they obey with the Privacy Act to secure section of your individualized and playing info Your mortgage broker should hit pertinent insurances (for warning Public Indemnity Insurance Cover) A beatific mortgage broker should be healthy to vindicate the most Byzantine loans in ultimate stark arts In closing you would same to hit consortium in the Mortgage Broker that you module use. It is essential that you verify your “gut instinct” when you are choosing a Mortgage Broker. You poverty to attain trusty that you same the mortal and secure that the Mortgage Broker module do the anulus abstract for you. It does not perceive to communicate the Mortgage Broker for testimonials (what another client hit said most them)