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Selfontwikkeling is belangrik vir ons menswees

Wed, 29 Apr 2026 08:00:43 GMT

Die woord “aftrede” is ‘n skrikwekkende woord wat jou maag laat rondtol. Wat bekommewekkend is die woordjie “stagnasie” – ‘n vrees wat met aftrede geassosieer kan word.

Selfontwikkeling is nie ‘n luukse wat slegs vir sekere fases van ons lewenreis gereserveer is nie; dit is ‘n noodsaaklike en lewenslange proses wat die kwaliteit van ons menslike bestaan bepaal. In ‘n wêreld wat voortdurend verander – tegnologies, sosiaal en ekonomies – kan stilstand maklik tot agteruitgang lei. Miskien is selfontwikkeling juis te meer belangrik vir afgetredenes – dit is ‘n proses waardeer alledaagse betrokkenheid en sinvolle gesprek die waarde van jou menslike bestaan inderdaad bevestig, ondersteun en instand hou.

Selfontwikkeling dra by tot persoonlike groei en selfkennis. Deur nuwe vaardighede aan te leer, kursusse te volg of bloot oor eie ervarings te reflekteer, leer jy jouself beter ken. Hierdie selfkennis help met beter besluitneming. Iemand wat byvoorbeeld besef dat hy/sy swak is in tydsbestuur, kan doelbewus strategieë ontwikkel om dit te verbeter.

Vir jonger mense kan selfontwikkeling help in hulle beroepsloopbane. Deesdae met die spronge in tegnologie, is aanpasbaarheid vir nuwe uitdagings ‘n groot vereiste. Vaardighede wat vandag relevant is, kan môre verouderd wees. Deur voortdurend te leer en aan te pas, bly ‘n persoon mededingend en waardevol, spesifiek ook in jou werksomgewing.

Die kern van selfontwikkeling lê in ingesteldheid. ‘n Mens moet nooit glo dat jy “klaar” is nie. Selfs op ‘n hoë ouderdom kan jy nuwe vaardighede aanleer, nuwe perspektiewe ontdek en nuwe verhoudinge bou. Hierdie ingesteldheid verhoed byvoorbeeld dat aftrede ‘n eindpunt word; dit maak dit eerder ‘n nuwe begin.

Wanneer ‘n mens stagneer, verloor jy nie net jou kreatiewe energie nie, maar ook jou vermoë om sin en betekenis in jou daaglikse bestaan te vind. Elke daad van groei is ‘n daad van vernuwing, en hou die gees jonk. Om te stagneer is om jou menswees te verwaarloos; om te groei is om jou menswees te eer. Selfontwikkeling hou die vlam van betekenis aan die brand, en dit is die vlam wat die mens se lewensreis tot die einde toe verlig.

Geksryf deur Koos van die Waterberge

vir Bovest

Never let a Crisis go to Waste

Tue, 31 Mar 2026 08:15:36 GMT

In a quiet corner of a garden, a tiny egg rested beneath a leaf, unnoticed by the world. In time, it hatched into a caterpillar—small, vulnerable, and endlessly hungry. Day after day, it consumed everything in its path, growing rapidly but remaining earthbound, exposed to every passing threat.

Then, without warning, it stopped.

It found a still place, attached itself to a branch, and formed a chrysalis. From the outside, it looked lifeless—fragile, even pointless. To an observer, it might have seemed like the end of its journey. But inside, everything was changing. The caterpillar was breaking down completely, dissolving into something unrecognizable before slowly rebuilding itself into something entirely new.

Time passed.

When the chrysalis finally opened, the creature that emerged was no longer confined to the ground. Its wings were soft at first, uncertain. It struggled, pushing fluid through them, strengthening them with effort. Only after this resistance could it take flight.

And when it did, it soared—no longer bound by the limitations of its former life but shaped by every stage that came before.

It’s been six years since humanity’s last global threat, the Covid pandemic. A lot has changed, but we as people have not. Just as the butterfly in the story above goes through its cycle the global economy does too. But the butterfly does not know its going through this cycle, its merely following its path. We are very aware of the cycle as it has an effect on our every day lives especially on our finances. But just as the butterfly follows its path, we do too.

Focus on what you can control.

We often stress the issues out of our own control and isn’t exclusive to finances. Not a single person reading this article has any control of the global economy and the current conflict in the Middle East. None of us also knew exactly when it would happen and when it is going to end. Don’t get me wrong, I too struggle to manage my thoughts and emotions when we go through the tough parts.

Shifting the focus towards finances; except for being in control of how you earn an income, the only other factor you can control is your spending. Stick to your budget! Never stop investing! Stay disciplined!

Crisis Asset Allocation

I get many questions on what we are doing to manage risk and potential losses. This is where financial planning becomes extremely important. Every single investment in your portfolio is linked to a need or a goal, not just any goal but a time-based goal. This specific time horizon has influenced the type of assets bought in order to reach these goals. The longer away the goal, the more risk is taken and vice versa.

Investments where liquidity is needed will be affected much less than a long-term share portfolio. More liquidity, less risk. Meaning that if you need cashflow you should not be worried as the asset exposure will be less affected. Retirement products will have exposure to many different assets where there are conservative assets to provide protection in the short-term. The growth asset exposure that may be volatile now is the part that gives you the long-term inflation beating returns.

During this part of the cycle certain assets have become less desirable and opportunities have popped up elsewhere. All portfolios are monitored to make sure that the original mandate is followed, and the investment goal is reached at the end of the applicable term.

All asset managers have started to make asset allocation changes to match the changing of the cycle and the Bovest investment committee has also done so.

Is it time to sell and move to cash?

In short, no. We don’t know when markets will turn and no one else either. Historically in these crises it takes on average around two weeks to reach the bottom of the market and then more than a month to recover. This does create many buying opportunities for asset managers but also for you as investor. Warren Buffet always says, "Be fearful when others are greedy and greedy when others are fearful" . This is the time to buy assets on “sale”, don’t sell them.

Getting out of the market is the biggest risk, this is where investors lose money. Stick to the plan and stay patient, you will be rewarded.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

Jou Aftrede en die Oorlog in die Midde-Ooste

Tue, 31 Mar 2026 07:47:50 GMT

Die oorlog in die Midde-Ooste is ’n nuuswaardige gebeurtenis en die TV-dekking daarvan ontstel die meeste kykers. Dit is die rede waarom afgetredenes wonder hoe hierdie vernietigende optrede van vegtende weermagte moontlik hul finansiële beplanning vir hul aftrede gaan raak.

Ons leef in ’n wêreld wat elke paar jaar geruk word deur onvoorsiene krisisse. Dink maar aan die internasionale finansiële krisis in 2008, en wie kan die pandemie van 2020 vergeet? Die finansiële markte is toe, net soos tans die geval is, negatief geraak deur vernietigende gebeure. Is die finansiële gevolge van die huidige oorlog anders as tydens vorige krisisse?

Finansiële beplanning vir aftrede is langtermynbeplanning, terwyl ’n krisis ’n korttermyngebeurtenis is. Langtermynbeplanning is veral noodsaaklik tydens korttermynperiodes wanneer finansiële markte wisselvallig vertoon. Geskiedenis het bewys dat die strategie om in en uit die markte te koop en te verkoop minder portefeuljegroei veroorsaak as om voortdurend in die markte belê te bly. Die beleggingstrategie van “timing the market” moet eerder vervang word met “time in the market”. Sodoende word groeigeleenthede in die markte benut en word kostes van transaksies vermy.

In ’n beleggingsomgewing waarin onsekerheid heers, is die diversifikasie van ’n beleggingsportefeulje een van die mees effektiewe benaderings tot risikobestuur. Beleggings in verskillende bateklasse en oor verskillende geografiese gebiede heen dien as ’n kussing teen krisisse soos die oorlog in die Midde-Ooste.

Langtermyn finansiële beplanning, waartydens daar gereelde portefeuljehersiening plaasvind, asook die hersiening van persoonlike finansiële doelwitte, verseker ’n meer stabiele uitkoms vir die afgetredene.

Hierdie oorlog is nie anders as vorige krisisse nie. Indien daar egter onsekerheid by kliënte van Bovest bestaan oor of hul huidige aftreeportefeulje reg saamgestel is vir die oorlogskrisis en die moontlike finansiële gevolge daarvan, moet hulle asseblief hul adviseur skakel.

Die informele sektor se bydrae tot die Suid-Afrikaanse ekonomie

Mon, 30 Mar 2026 13:19:44 GMT

In die strate van ons stede en dorpe, by taxi-staanplekke, in woonbuurtes, en deesdae selfs langs hoofpaaie sit hulle – dit is die wêreld van straatverkopers, ook genoem smouse en “masmous”, soos hulle in Sepedi bekend staan. Op owerheidsvlak staan hulle as die informele sektor bekend.

Baie van ons loop maar net verby sonder om werklik van hulle notisie te neem. Voor 1994 was hulle verbied in die sentrale sake sektor van stede en dorpe. Hulle handelsware kom grootliks uit die landbou en baie van dié produkte is op dieselfde dag op plase ge-oes – dit, in teenstelling met groente en vrugte wat vir dae afwagtend deel vorm van die voorsieningsketting van winkels.

Na 30 jaar op ‘n vrugteplaas het ek ‘n begrip vir die smousgemeenskap ontwikkel. Dit is voldag en laataand mense wat ‘n kritiese aanvullende rol in ons breër ekonomie speel. Ek het baie respek oor jare vir hulle ontwikkel. Hulle kyk nie in die oë van die staat nie. Vervoer is een van hulle kernuitdagings en meeste maak staat op die taxi-bedryf in dié opsig en soms moet hulle ver ry om produkte te bekom – als teen ‘n koste.

Oor die jare het ek hulle op hulle name leer ken. As die vrugte seisoen begin het hulle telkens teruggekom. Somtyds was daar iemand wat ontbreek het - by navraag is die persoon dan oorlede of het sy gesondheidsprobleme ontwikkel. Vrouens vorm ‘n oorheersende komponent van die smousgemeenskap – baie van hulle enkelouers wat alleen gesinne finansieël aan die gang hou.

Nou onlangs was daar ‘n interessante dispuut onder ekonome oor die bepaling van die werkloosheidskoers. Sentraal tot die diskoers was die verrekening van die informele sektor. Die omvang van hierdie sektor is belangrik in enige berekening, want dit skep werk. Volgens berekeninge is daar rofweg 3 tot 5 miljoen Suid-Afrikaners in die informele sektor werksaam.en verteenwoordig tot 25% van ons werksmag. Skattings dui ook daarop dat die informele ekonomie ongeveer 6 % van die Suid-Afrikaanse BBP bydra.

Die informele sektor is nie ‘n marginale verskynsel van die Suid-Afrikaanse ekonomie nie, maar ‘n sentrale pilaar wat werk verskaf aan miljoene mense wat andersins uitgeskakel van die formele sektor sou wees. Of die informele sektor genoeg rugsteun van die staat

af kry is ‘n ope vraag. Die potensiaal vir ‘n groter bydra tot die ekonomie is daar, maar dit moet nie in rigiede formele strukture ingedwing word nie.

Kom ons kyk met ander oë na hierdie sektor en as ons volgende keer weer verby straatsmouse loop – kyk na die gehalte van hulle produkte - jy sal dalk verbaas wees. Dit is ‘n merietevolle gemeenskap wat ondersteuning nodig het.

Geskryf deur Koos van die Waterberge

vir Bovest

Aftrede, Nalatenskap en die Ontbrekende Bestanddeel in Generasionele Welvaart

Wed, 25 Mar 2026 07:14:10 GMT

Aftredebeplanning word dikwels as ’n suiwer numeriese oefening voorgestel: hoeveel kapitaal benodig word, watter opbrengskoers haalbaar is, en hoe lank die geld moet hou. Alhoewel hierdie vrae belangrik is, toon dekades se ervaring in welvaartbestuur en belastingadvies ’n dieper waarheid — syfers alleen bewaar nie welvaart nie.

Die geskiedenis is vol voorbeelde van families wat beduidende bates opgebou het, maar wat binne een of twee generasies verdwyn het. Die bekende spreekwoord dat “rykdom binne drie geslagte van moue na moue terugkeer” is nie ’n mislukking van beleggingsmarkte nie, maar eerder ’n mislukking van waardes, rentmeesterskap en opvolging.

Lesse uit Aftredebeplanning

Aftrede is die eerste werklike stres-toets van welvaart. Dit openbaar nie slegs of voldoende kapitaal opgebou is nie, maar ook of die individu die dissipline, wysheid en selfbeheersing ontwikkel het wat nodig is om daardie kapitaal verantwoordelik te bestuur.

Algemene lesse wat onder afgetredenes waargeneem word, sluit in:

Welvaart wat sonder doel opgebou word, word dikwels sonder beperking verbruik
’n Hoë inkomste waarborg nie langtermyn finansiële sekerheid nie
Tegniese beplanning kan nie swak karakter of gebrekkige besluitneming kompenseer nie
Vrede in aftrede is selde eweredig aan netto waarde

Diegene wat ’n volhoubare en waardige aftrede ervaar, deel dikwels ’n gemeenskaplike eienskap: hulle beskou welvaart as iets wat aan hulle toevertrou is, nie as iets wat absoluut aan hulle behoort nie.

Waarom Generasionele Welvaart Dikwels Misluk

Uit ’n tegniese oogpunt misluk generasionele welvaart dikwels as gevolg van:

Swak boedelbeplanning
Oormatige boedelbelasting en belastinglas
’n Gebrek aan trusts, strukture of behoorlike bestuur

Selfs die mees noukeurig gestruktureerde boedel kan egter misluk wanneer die volgende generasie nie beskik oor:

Finansiële dissipline
’n Gesonde werksetiek
Respek vir kapitaal
’n Morele raamwerk vir besluitneming

Kapitaal sonder karakter is broos. Welvaart wat sonder wysheid oorgedra word, word ’n las eerder as ’n seën.

Die Ware Opvolger: Die Vrees van die Here

Die Skrif stel dit duidelik:

“Die vrees van die HERE is die begin van wysheid, en die kennis van die heilige is insig.”

(Spreuke 9:10)

In finansiële terme is hierdie beginsel merkwaardig prakties. Die vrees van die Here, deur Christus, kweek:

Verantwoordbaarheid buite die self
Rentmeesterskap eerder as aanspraak
Langtermyn-denke bo korttermyn bevrediging
Nederigheid in voorspoed en standvastigheid in teëspoed

Families wat welvaart oor geslagte heen bewaar, bewaar byna altyd eers waardes voordat hulle bates bewaar. Geloof voorsien ’n morele kompas wat langer voortduur as enige trustakte, beleggingsmandaat of testament.

Welvaart as Rentmeesterskap, Nie Eienaarskap

Bybelse rentmeesterskap herdefinieer welvaartbestuur geheel en al. Bates word nie meer bloot instrumente vir verbruik nie, maar middele om:

vir familie te voorsien
geleenthede vir toekomstige geslagte moontlik te maak
gemeenskap en doel te ondersteun
God te eer deur verantwoordelike bestuur

Wanneer welvaart deur hierdie lens beskou word, word aftredebeplanning meer as slegs inkomstevervanging — dit word nalatenskapsbeplanning.

Die Integrasie van Geloof en Finansiële Beplanning

By Bovest beteken holistiese beplanning die erkenning dat:

Finansiële uitkomste deur gedrag beïnvloed word
Gedrag deur oortuigings gevorm word
Oortuigings bepaal of welvaart blywend is

Tegniese uitnemendheid in belasting, beleggings en boedelbeplanning moet gepaard gaan met doelbewuste gesprekke oor doel, verantwoordelikheid en die oordrag van waardes.

Slot

Ware sukses is nie om ryk af te tree nie, maar om goed af te tree.
Ware opvolging is nie die oordrag van bates nie, maar die oordrag van wysheid.

Die ware bewaring van generasionele welvaart lê nie slegs in strukture nie, maar in harte wat met waarheid in lyn is.

Die vrees van die Here is nie bloot ’n geestelike beginsel nie — dit is ook die mees betroubare en tydgetoetste strategie vir welvaartbewaring wat die wêreld nog geken het.

Deur Godfried Kotze (MCom Belasting)
Vir Bovest Wealth Management

Die Oorlog in die Midde-Ooste en jou Beleggingsportefeulje

Wed, 04 Mar 2026 13:35:17 GMT

Beleggers is onseker oor wat die invloed van die oorlog in die Midde-Ooste op hul beleggingsportefeuljes gaan wees. Gaan die vernietiging van infra-struktuur, die wisseling in die prys van olie en die sterkte van die Suid-Afrikaanse geld eenheid teenoor die Amerikaanse dollar die prestasie van hul beleggingsportefeuljes nadelig raak? Niemand weet ook nie hoe lank die oorlog gaan duur en of vyandighede gaan uitbrei na ander lande nie.

Dit is egter belangrik om die volgende rakende Bovest se beleggingsportefeuljes te onthou:

Diversifikasie . Portefeuljes is saamgestel uit die verskillende bateklasse naamlik aandele, efekte, kontant en gelyste eiendom. Indien die olie pryse styg weens ’n tydelike tekort aan olie gaan sekere aandele se pryse daal. Die ander bate-klasse sal egter nie so negatief geraak word nie.

Verskillende beleggingsfondse . Die Fonds van Fondse (FoF) metodiek word gebruik om beleggingsportefeuljes saam te stel. Dit verseker dat beleggingsportefeuljes vinnig herstel na onvoorsiene gebeure soos oorloë of natuurrampe. Die verskil in die beleggingstyle van die verskillende fondsbestuurders verseker ook bo-gemiddelde beleggingsprestasie.

Aktiewe bestuur. Die beleggingskomitee bestuur die beleggingsportefeuljes aktief deur die verskillende ekonomiese siklusse.

Beleggers het anders as spekulante ’n lang termyn benadering oor beleggingsprestasie. Die onlangse geskiedenis met die Covid-pandemie asook die finansiële krisus van 2008 het bewys dat geduld bo-gemiddelde beleggings prestasie verseker.

Alhoewel die huidige oorlog in die Midde-Ooste finansiële markte nadelig raak, weet ons dat ons as beleggers geduldig moet wees om hierdie onseker tye te deurstaan en nie emosionele veranderings aan portefeuljes maak nie.

Indien lesers enige navrae oor hul portefeuljes het, kan hulle hul Bovest adviseur skakel.

Die Verandering van Lewensfase van Seniors

Tue, 03 Mar 2026 13:45:54 GMT

Dit is tyd om ankers op die plaas op te trek. Van Wyk Louw het gesê as die getye verander moet jy die bakens verskuif. Ons moet los items verkoop, moet minder maak, die volgende lewe vereis ‘n eenvoudiger bestaan met minder lewensgoedere binne kleiner spasies. Ons durf die proses moedig aan en dit neem tyd.

Daar is ‘n menigde afvalmetaal items op die plaas en dit moet verwyder word – ironies, ook dit moet ‘n nuwe lewensfase in ‘n nuwe omgewing binnegaan. Ons laai die eerste vrag van vele. Daar is metaalpype, heiningmateriaal, stukke van ou landbouimplemente, en haas enige iets wat een of ander metaal bevat. My eindbestemming is Modimolle se skrootwerf.

By die ingang is daar ‘n ketting wat toegang reguleer. Ek word beveel om bo-op ‘n metaalstrook te ry, net om later agter te kom dat dit eintlik ‘n weegbrug behels – ‘n noodsaaklike kritiese item in die proses van metaalverhandeling. Ek moet uitklim want saam word ek nie geweeg nie. Ek dink…in my huidige kondisie sou ek nogal ‘n goeie opbrengs in skrootmetaalpryse kon behaal. ‘n Werker in ‘n kantoortjie teken die gekombineerde gewig van die voertuig en vrag aan. Van hier word die vrag stuk-stuk volgens die soort metaal afgelaai.

‘n Man wys my die pad aan tussen hope metaalitems. ‘n Besige landskap van bedrywighede ontvou voor my – vurkhysers, trekkers, blouvlamme wat metaal opsny, waentjies wat afval na hulle bestemmings op die perseel vervoer en arbeiders wat lorries en sleepwaens aflaai. Eenkant lê ‘n wrak van ‘n motor, ‘n laaste staanplek voordat dit in stukke opgesny en inmekaar gepers sal word. Terwyl ek staar kan ek nie help om ‘n vermenslikte beeld in die motor te sien nie. Dit lyk vir my soos iemand wie se wiele afgekom het, voor is dit in die bek geskop en van agter het dit ‘n gatskop gekry. Dit het ook nie meer visie nie, want die voorruit is aan vlarde. Wat ‘n droewige gesig.

Ons begin aflaai. Elke soort metaal kry sy eie tuiste, koper hier, alimunium daar, brons in ‘n drom wat geel gemerk is. Elke keer na ‘n spesifieke metaal afgelaai is, moet die voertuig terug skaal toe om die gewig van ‘n metaal te bepaal. Uit die aard van die saak verskil metale se pryse, Binne my aanvanklike beeld van skrootchaos, ontluik daar ‘n onderliggende nougesette en presiese ordeningsproses. Die aflaai self vorm ‘n ritmiese proses, ‘n stille doelgerigtheid in kontras met die ruwwe aard van die omgewing.

‘n Indruk tref my. Hierdie versameling van skroot, in teenstelling met wat meeste mense as afval sal beskou, word met metodologiese sorg hanteer. Dit is nie net ‘n stortingsarea nie, dit is ‘n sorteringsterrein waar die oorblyfsels van industrieële komponente nuwe waarde vind – elke item word sorgvuldig uitgesoek, geweeg, geprys, en uiteindelik herwin tot nuwe bruikbaarheid.

Die laaste item word afgelaai. Ek word verwys na die betaalkantoor en stap die trappe op. ‘n Vriendelike dame groet my. Haar naam is Elsabe. Sy is druk besig om al die berekeninge te doen. Ek vra:

“Elsabe, kry ek darem genoeg geld om ‘n draai by die Spur te maak?”

“Ja oom, en genoeg vir ‘n voorgereg ook”

Ek ry weg met kontant in die hand en met ‘n dieper begrip van ‘n nuwe wêreld wat ek nie voorheen geken het nie. Dit wat aanvanklik as ‘n eenvoudige taak begin het, het voortgevloei in ‘n begripvolle blik op ‘n nywerheid wat ons moderne bestaan op ‘n positiewe wyse rugsteun. Agter elke hoop rommel is daar in werklikheid ‘n storie.

Multi-Generational Wealth: Building a Legacy That Outlives You

Tue, 03 Mar 2026 09:28:55 GMT

True wealth isn’ t just built — it’s reproduced. Legacy means passing on more than money;

it’s transferring values, vision, and wisdom that multiply through generations .

MULTI-GENERATIONAL WEALTH

By Godfried Kotzé MCom Taxation (UP) – Bovest Fiduciary

“A good person leaves an inheritance for their children’s children…” — Proverbs 13:22

This timeless verse reveals more than financial wisdom — it defines stewardship. It

calls us to look beyond our lifetime, beyond mere accumulation, and toward

generational continuity.

Yet, in modern society, few families successfully transfer wealth past the second

generation. The pattern is familiar: the first generation builds it, the second enjoys it,

and the third loses it. The problem isn’t money — it’s meaning.

WHY LEGACY FAILS

We live in an age that prizes speed and success, but rarely sustainability.

Entrepreneurs often work tirelessly to build wealth, yet fail to preserve it.

The reasons are clear:

Short-term vision: Wealth is built for lifestyle, not legacy.
Weak structures: Assets stay exposed in personal names.
No succession: Leadership and knowledge aren’t transferred.
Values lost: The principles that created wealth are never embedded in the family culture.

Without structure and shared values, wealth cannot endure — much less multiply.

Reproducing Yourself, Not Just Your Wealth

At Bovest Fiduciary, we believe multi-generational wealth isn’t only about building

wealth — it’s about reproducing yourself.

That means intentionally passing on, Values that guide decisions, Wisdom born from

experience, Relationships that open doors, Purpose that give meaning to it all.

When you reproduce yourself in these ways, your heirs inherit more than assets —

they inherit identity. And identity is what sustains multiplication through time.

“When you reproduce your values and wisdom— not just your money — you create

multiplication that outlives you.”

Blueprint for Continuity

Proverbs 13:22 is not about tax strategy — it’s about responsibility. It’s a call to build

something that endures, guided by stewardship, discipline, and vision.

Build Protective Structures

Trusts and estate plans preserve assets and ensure they are managed by your

principles long after you’re gone.

Empower the Next Generation

Financial education, mentorship, and involvement teach stewardship early.

Plan for Business Succession

Treat your company as an intergenerational asset, not a personal one.

Review and Adapt

Revisit your structures and goals regularly. Legacy requires active management.

MULTIPLICATION, NOT MAINTENANCE

Generational wealth is not about preservation — it’s about multiplication.

When you pass on your values as carefully as your assets, you set in motion

something that can keep growing long after you’re gone.

Why Trusts Matter Today

Too many estates crumble because assets are held in personal names and passed

directly to heirs — exposing wealth to estate duty, capital gains tax, and risk.

A trust changes that.

Tax-efficient: Assets in a trust are excluded from your personal estate, reducing estate administration cost, estate duty and capital gains on death.
Protected inheritance: Your children can inherit through their own trusts, not personally — shielding wealth from creditors, tax erosion, or mismanagement.
Continuity: The trust ensures your assets continue to grow under governance and aligned with purpose.

“A trust isn’t just a tax tool — it’s a form of stewardship, designed for generational

multiplication.”

FROM WEALTH-BUILDING TO LEGACY-BUILDING

Whether you’re starting your financial journey or planning your estate, a trust is one

of the most effective tools to build and preserve generational wealth.

At Bovest Fiduciary , we help entrepreneurs and investors use trusts and estate

planning to turn financial success into lasting legacy — where both values and wealth

continue to multiply.

Legacy begins when we stop building only for ourselves — and start building for our

children’s children.

By Godfried Kotzé

Bovest Fiduciary – Trust and Estate Planning for Entrepreneurs and Investors

Stop Paying Yourself Last

Mon, 23 Feb 2026 09:37:48 GMT

For many professionals, personal savings are what’s left over — if anything is left at all.

The data is clear: South Africa’s domestic savings rate remains worryingly low. Even among high-income earners, inconsistent or delayed investing is common. Income alone does not create wealth. Behaviour does. The real risk isn’t lifestyle inflation — it’s time.

Missed early contributions cannot be fully recovered later, no matter how high your income becomes. Compounding rewards consistency, not intention. Paying yourself first isn’t about sacrifice; it’s about ensuring today’s success translates into future independence.

If Your Business Needs a Budget, So Do You

No business operates successfully without a budget. Yet many professionals try to run their personal finances without one. Paying everyone else first — the bank, SARS, suppliers, schools, lifestyle — is what happens when there is no clear structure.

Fortunately, a simple framework solves this: the 50/30/20 principle.

50% – Essential Expenses

Bond or rent, food, medical aid, school fees, fuel, insurance and other “must-have” costs.

30% – Investments (Your Future Self)

Long-term wealth building. Retirement funding. Investments that compound over decades.

This allocation happens before discretionary spending. This is how you pay yourself first.

20% – Lifestyle & Discretionary Spending

Travel, entertainment, upgrades, dining out and lifestyle enhancements.

This framework also brings clarity to big financial decisions. If a new home or vehicle pushes your essential expenses above 50%, it is not affordable — regardless of what the bank approves. Affordability is not what you qualify for. Affordability is what fits sustainably inside your structure.

The Cost of Waiting: A Simple Illustration

Let’s consider two investors with similar careers and earning potential.

Investor A starts investing R15,000 per month at age 30 and contributes for 10 years — stopping at age 40 — but leaves the money invested.
Investor B delays saving while focusing on practice expenses and family commitments. At age 40, they begin investing R15,000 per month and continue until age 65 — 25 years of contributions.

Assuming the same long-term return, Investor A can still retire with more capital than Investor B despite investing for less than half the time.

Why? Because Investor A gave their money an extra decade to compound. Those early contributions don’t just grow — they grow on top of growth, year after year. By the time Doctor B begins, Doctor A’s capital has already built momentum. Compounding is exponential, not linear. The first ten years are often the most powerful.

Time is the most valuable asset in wealth creation. And unlike income, it cannot be increased later. High income creates opportunity, but discipline creates freedom. If your budget reflects your priorities, your future becomes predictable.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

Tax Season: Take advantage of your RA & TFSA

Tue, 27 Jan 2026 08:32:31 GMT

28 February marks the end of the tax year.

If you have some extra funds available, this might be the perfect time to consider adding to your savings in a retirement annuity (RA) or tax-free savings account (TFSA), thereby enjoying the significant tax benefits these products offer.

Below are the benefits of both an RA and a TFSA, as summarised by our partners at Ninety-One. As always, please contact your personal financial adviser to assist you in calculating the amount you can still contribute, as well as whether this will be best for your portfolio and personal situation:

Why invest in an RA?

1. RAs can be viewed as gifts from the taxman.

For example, at a 45% marginal tax rate, a deductible RA contribution of R100 000 can generate up to R45 000 in tax relief (within the limits). Tax will be applicable when the funds eventually pay out at retirement, but due to the tax-exempt portion of the lump sum, as well as the tax rebates for individuals over 65 and 75, you may pay less tax at that time.

2. You do not lose your tax benefits, even if you contribute more than the maximum annual tax deduction (excess contributions)

If you contribute more than the maximum (excess contributions), your tax benefit will roll over to the next tax year of assessment. Any excess contributions in subsequent tax years will continue to be rolled over. This means that you could receive a tax benefit at retirement, after retirement, or your beneficiaries could benefit when you have passed away, as explained below.

RA contributions and tax

Before retirement
When contributing to an RA, your maximum tax deduction for the year is the lesser of:

R350 000
27.5% of the higher of remuneration or taxable income
Taxable income excluding taxable capital gains

At retirement
If you elect to receive a lump sum:

The remaining excess contributions will be paid out free of tax
R550 000 could be tax-free – if not previously utilised

After retirement
Excess contributions remaining after your retirement are deductible from your compulsory annuity income for tax purposes (section 10C of the Income Tax Act).

After you pass away
If your beneficiary elects to receive the full death benefit, or a portion thereof, as a lump sum:

The remaining excess contributions will be paid out free of tax
R550 000 could be tax-free – if not previously utilised

The tax deduction limit applies to the combined total of RA contributions and all member and employer contributions to workplace pension and provident funds.

3. You enjoy estate-planning benefits.

An RA is exempt from estate duty. Please note that excess contributions may be included for estate duty purposes, to the extent that a lump sum is received.
The growth on your excess contributions is not subject to estate duty – you can therefore effectively peg the value of your estate (similar to the benefit obtained from a trust, prior to the introduction of section 7C of the Income Tax Act).
Over time, the value of excess contributions could be reduced, which would decrease the potential estate duty payable on these excess contributions.

4. No tax is deducted within the investment (no income tax, capital gains tax or dividend withholding tax).

This means you will benefit even more from compounded growth.

5. You remain disciplined with your retirement savings.

The two-pot retirement regime was introduced on 1 September 2024. This system allows members access to a small portion of their retirement savings before they retire, while preserving the remainder until retirement (unless one of the exceptions specified in the Income Tax Act applies). To achieve this, various notional components within a member’s retirement fund benefit or contract were created.

These components are referred to as:

The Vested Component
The Savings Component
The Retirement Component

Members are able to withdraw from the Savings component once in a tax year. Withdrawals from the Savings component are subject to a minimum of R2 000 per withdrawal and are taxed at your marginal tax rate.

6. You have protection from creditors.

This means your savings for your retirement will be available when you need them.

Key considerations when investing in an RA

RAs are subject to Regulation 28 investment limits.
On the death of the investor, the Board of Trustees will have full discretion when deciding on a fair allocation of the benefit to dependants and/or nominees, in terms of section 37C of the Pension Funds Act.
There are liquidity restrictions prior to reaching retirement age. This means that you will only have access to the funds in the Savings component before reaching the age of 55 (unless you qualify for one of the exceptions).

Why invest in a TFSA?

TFSAs are exempt from tax on interest, dividends and capital gains.
There are no restrictions on withdrawals; however, if you replenish the funds withdrawn, this will count towards your annual and lifetime contribution limits. For this reason, these investments are generally more suited to long-term investing.
TFSAs are a great way to save for your child’s education (be aware of donations tax if the annual exemption of R100 000 per donor is exceeded).

Contributions

No matter how many TFSAs you have with different product providers, the total combined value of your contributions may not exceed R36 000 per tax year and R500 000 over your lifetime.
If you exceed these contribution limits, a penalty of 40% will apply on the amount contributed above the limit, which will be added to your tax assessment.

Five Financial Mistakes Doctors Commonly Make

Thu, 22 Jan 2026 09:26:57 GMT

Medicine is built on precision, protocols, and evidence-based decisions. Financial life, unfortunately, is not. For many doctors, success arrives early in one area of life and much later in others—time, structure, and strategic planning often lag behind income.

Over the years, a few patterns come up repeatedly when working with medical professionals. These are not mistakes born from ignorance or carelessness, but rather from being busy, successful, and focused on patients first.

Here are five of the most common financial missteps doctors make—and why addressing them early can materially change long-term outcomes.

1. Being “Cash Heavy” Feels Safe… Until It Isn’t

Holding large cash balances is often seen as prudent. Cash is liquid, familiar, and low-stress. For doctors with volatile workloads or private practices, this feels especially comforting. The problem? Cash is one of the most tax-inefficient assets for high earners.

While interest income enjoys a modest annual exemption, anything above that threshold is taxed at your marginal rate. For many doctors, this means a significant portion of “safe” interest returns never actually reach them. Add inflation into the mix, and the real (after-tax, after-inflation) return on excess cash can quietly turn negative.

Cash has a role—but without intention and limits, it often becomes a silent drag on long-term wealth.

2. Paying More Tax Than Necessary (Without Realising It)

Doctors are among the most heavily taxed professionals in South Africa, yet tax planning is often treated as a once-a-year exercise rather than an integrated strategy. The issue isn’t usually under-reporting—it’s under-structuring.

Different investment vehicles are taxed in very different ways. Income tax, capital gains tax, and dividend tax don’t just affect returns; they compound over time. Two portfolios with the same gross return can end up worlds apart after tax if they’re structured differently.

When investment decisions are made in isolation—without considering tax, time horizon, and estate implications—the cost isn’t obvious in year one. It shows up quietly over decades.

3. Offshore Exposure: Opportunity or Overreaction?

Global diversification is important. Offshore exposure can reduce concentration risk and unlock opportunities unavailable locally. However, many investors move money offshore without a clear strategy—often driven by headlines, fear, or currency anxiety rather than long-term planning.

Key questions are frequently overlooked:

How much offshore exposure is appropriate for your situation?
Which structures are most efficient?
How does this affect tax, liquidity, and future repatriation?

Offshore investing isn’t a binary decision. The value lies in how, where, and through what structure exposure is obtained—not simply in moving money abroad.

4. Paying Everyone Else First

Doctors are natural caregivers. Practices, staff, patients, families—everyone’s needs come first. Personal savings often come last. The data is clear: South Africa’s domestic savings rate remains worryingly low. Even among high earners, inconsistent or delayed personal investing is common.

The risk isn’t lifestyle inflation—it’s time. Missed early contributions can’t be recovered later, no matter how high income becomes. Compounding rewards consistency, not intention. Paying yourself first isn’t about sacrifice; it’s about ensuring today’s success translates into future independence.

5. Using the Wrong Investment Structures

This is arguably the most expensive mistake—and the least visible.

Many doctors accumulate investments across multiple platforms, policies, and accounts over time. Each decision may have made sense in isolation, but together they can create inefficiencies around:

Tax
Access
Estate planning
Intergenerational transfer

The structure holding the investment often matters as much as the investment itself. Over a 20- or 30-year horizon, the difference between “adequate” and “optimal” structuring can be substantial—even if the underlying returns are identical.

The Common Thread

None of these mistakes stem from poor decision-making. They stem from complexity, time pressure, and the reality that financial planning is a discipline of integration—not isolated choices. Income, tax, investments, offshore exposure, and estate planning don’t operate independently. When aligned, they reinforce one another. When they’re not, value leaks out quietly year after year.

For professionals who spend their lives mastering complexity in one field, the challenge is recognising that financial clarity often requires the same level of specialised thinking. Because in finance—just like in medicine—the biggest risks are rarely the obvious ones.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

Smart money moves: How to create financial habits that last longer than your New Years resolutions!

Thu, 04 Dec 2025 13:41:16 GMT

I recently signed up for one of my bucket list items, the demanding Comrades Marathon.

It’s something that I always had in the back of my mind, and I said to myself that if I ever where to take on the 87km beast, I am going to be prepared.

So, as I successfully entered and received my number, I immediately did 2 things:

1) I got a coach: Someone who is experience and can guide me week by week, month by month leading up to the Ultra Marathon

2) I got a training partner : After using all my persuasion skills, I convinced a friend to join me on this journey. Not only for the comradery, but more as an accountability partner, to make sure I show up for training even though I might not feel like it

For many of us, we want to make sure 2026 is our best year yet, not just physically, but financially as well. How can we be more productive and make more money or at least manage it better?

In his Book Atomic Habit, James clear writes about the ‘Commitment device’ in chapter 14. A Commitment device, also referred to as the ‘ Ulysses pact’ is a choice you make in the present, that controls your actions in the future. It is a way to lock in future behaviour, bind you to good habits and restrict you from the bad ones.

Some examples include:

- Eating out of smaller plates – to limit calorie intake.

- Unsubscribe to emails and apps – to waste less time

- Setting up an outlet timer, to cut off the Wi-Fi at 9pm per night - to limit social media or series binging.

- Keep your phone in another room when working – to avoid distractions

When it comes to your finances here are a couple of things you can try to make 2026 you most financially rewarding year yet.

- Automate your investments: Remove the temptation to spend your money by setting up debit order for the money to be invested as soon as it hits your bank account

- Appoint a financial partner – this can be an advisor, friend or spouse: his person must be strict and diligent and keep you to your goals. Schedule quarterly calls to go through your investment accounts to see how much it has grown

- Buy groceries only twice a week: We almost always buy things we don’t need – limit your number of visits to the store

- Let you partner hide your credit card during the week and have an x amount of cash available. This might sound harsh but can be extremely effective as we swipe or tab often without thinking.

There’s so many examples of how we can adjust our behaviour by setting up ‘ Commitment devices. I’d like to hear your favourites so please send them through to geo@bovest.co.za and let’s help each other to make 2026 memorable and profitable.

Geo Botha CFP®

Marketing Director

2025 - Reflection and a Personal Testimony.

Thu, 04 Dec 2025 11:54:33 GMT

Dearest clients and colleagues.

While I was contemplating about this month’s topic, I felt led to share the following testimony with all of you. I really hope it will encourage you and call you to action.

Before I begin, I am sure you will get enough information about the markets and politics from my colleagues, so I am happy to divert and continue my story.

Just a bit of background. I have been on diamond Vitality status with Discovery for many years. I have faithfully done my yearly check ups every year and also the specific tests that Discovery requests. I slipped up after Covid with my mammogram and pap smear and I didn’t know I had to do a colonoscopy.

Just before my birthday in July, I had severe stomach pain. I am not a person who likes to visit a doctor but here I certainly learned a lesson. If you have pain, your body is telling you there is something wrong, so don’t be tough, just go and check it out.

I was diagnosed with colon cancer.

EVERYTHING changes in an instant.

The way you look at life, your values, how you see people, your relationship with your Creator and Saviour.

Everything happened so fast and I had to go in for major surgery. After 10 days in ICU, fighting for my life and a couple more days in the surgical ward, I was discharged.

So many things were going through my mind.

Will I see Christmas again? Will I ever be strong enough to enjoy life again? Will I see my children and grandchildren again? Will I have to go for chemotherapy and radiation?

Doubt and fear started to slowly enter my mind. The battle is in the mind.

Then breakthrough!

My tests came back and I was clear. No cancer in my body. Surgery was successful. Oncologist was happy. I do have to be monitored regularly, but praise God?

Here I must elaborate. I have a strong support group who carried me in prayer. I have faith in our Almighty God who still heals today. Bovest as a company also supported me phenomenally. Thank you to all ��

My message for all of you is the following: please go to the doctor if you have pain or discomfort. Please do your mammogram, pap smear, prostate and colonoscopy tests regularly. Prostate test now is just a blood test. Please make sure your severe illness and income protection cover is in place. You really need it. Speak to your advisor about it.

Don’t be like an ostrich, prevention is far better than cure. Surround yourself with positive people.

Spend time in the Word. It is alive and it is healing to your body, soul and spirit. You are welcome to reach out to me anytime. May you have an amazing 2026 and please look after yourself.

Kind regards

Yvonne

Dankbare Terugblik op 2025

Wed, 03 Dec 2025 19:05:09 GMT

Aan die einde van 2025 kyk ons met dankbaarheid terug na ’n suksesvolle jaar. Bovest het hierdie jaar weereens goed gevaar weens die vertroue wat kliënte in ons welvaartsbestuurs vermoë het. Hierdie vertrouens verhoudings het tot gevolg gehad dat meer kliënte, as in die verlede, na Bovest verwys is deur gelukkige bestaande kliënte. Ons wil ons dank uitspreek teenoor ons bestaande en lojale kiënte vir hul ondersteuning gedurende die jaar.

Met die aanbreek van die kersseisoen is ons dankbaar vir al die seënige wat ons die afgelope jaar van ons Hemelse Vader ontvang het. Dit is ook familie tyd en ons wens al die families ’n veilige reis en welverdiende rus toe.

Mag 2026 ’n voorspoedige jaar wees!

The Bovest Twilight Webinar Series for Doctors

Wed, 03 Dec 2025 08:30:01 GMT

The Bovest Twilight Webinar Series is meticulously designed for medical professionals who are not only clinicians but also business owners. We delve into the crucial aspects of running a successful medical practice, offering actionable business insights and strategies that aren't typically covered in medical school.

Each session is fully CPD accredited (10 ethics points), ensuring you earn valuable points while enhancing your practice management skills. Join a community of forward-thinking peers and learn from industry experts to transform your practice into a thriving business.

International and local experts in finance, law, strategy, tech and medical marketing come together to reshape the future of private practice. The Bovest Twilight Webinar Series helps doctors turn good ideas into great practices — from first patients to full-scale growth. The series will be hosted in January 2026 supported by APS Africa, LLM Pretorius Davies Inc, Global Z-Data and myMed Marketing.

Bovest Wealth Managers, Ruvan J Grobler and PJ Botha will host two sessions:

5 Common Financial Mistakes Doctors Make – 29 January 2026, 18:00-19:00
Estate Planning for Doctors – 12 February 2026, 18:00-19:00

Ruvan J Grobler RFP™ (PGDip Financial Planning)

LEEF DOELGERIG AS AFGETREDENE

Fri, 31 Oct 2025 06:39:00 GMT

Die regte gesindheid teenoor aftrede verseker dat ons gelukkig aftree. Die nuwe vryheid wat jy beleef as ’n afgetredene is om jou eie tydskedule te bepaal en om te doen wat jy jou hele werkende lewe na gehunker het. Hierdie fase in jou lewe is kosbaar en moet ten volle benut word.

Bepaal die doel wat jy as ’n afgetredene moet uitleef. Dit is meer as om net jou belangrikse bate – jou tyd – te gee vir die saak waarin jy ’n verskil wil maak. Gedurende jou werkende loopbaan het jy soveel kundigheid opgedoen om suksesvol te kan wees en om jou doel uit te leef. Hierdie kennis sowel as die lewenservaring wat opgedoen is, stel jou daartoe in staat om ’n verskil te kan maak.

Party afgetredenes onttrek uit die besige samelewing en raak stil voor die Hemelse Vader om te bepaal wat die doel is wat uitgeleef kan word. Om hierdie doel uit te leef is dit belangrik om saam met ander afgetredenes te werk.

Om te verhoed dat jy na aftrede vereensaam moet jy moeite doen om by mense in te skakel omdat sosiale aktiwiteite baie belangrik is. Doen navorsing om te bepaal by watter groep mense jy graag wil inskakel.

Die realiteit in Suid Afrika is dat talle afgetredenes geraak word deur die vertrek van hul kinders na die buiteland. Die ondersteuningsrol van kinders in die lewe van afgetredenes moet nie onderskat word nie veral as die ouers verswak of siek word. Dit is daarom belangrik dat verhoudings met mense gevorm word wat kan help om die afwesigheid van kinders te versag.

Om doelgerig te leef is ’n keuse wat jy as afgetredene maak. Om besig te wees met aktiwiteite wat nie net jou eie lewe bevoordeel nie maar ook die lewe van ander, is kosbaar en moet ten volle benut word. Die beloning wat hierdeur ontvang word kan nie in geld terme bereken word nie maar wel deur dankbaarheid en vreugde.

Voorspoed word toegewens aan alle afgetredenes wat die keuse maak om wel ’n verskil in hulle samelewings te maak!

South Africa has been removed from the Grey List.

Thu, 30 Oct 2025 14:28:36 GMT

South Africa has officially been removed off the Financial Action Task Force's (FATF) grey list as of October 24, 2025. This comes after 33 months of work to strengthen the country's anti-money laundering and counter-terrorism systems.

Why Was South Africa Grey Listed in the first place?
In February 2023, the FATF placed South Africa on the grey list due to weaknesses in its ability to enforce anti-money laundering regulations. These included ineffective investigations and prosecutions, particularly in severe money laundering and terrorist financing cases.
To get off the list, South Africa needed to accomplish 22 action items. By June 2025, the FATF reported that all items had been handled. Although some areas, like as prosecutions, require improvement, this did not prevent the country from being removed from the list.

What is the Function of the Financial Intelligence Centre (FIC)?
The Financial Intelligence Centre helped South Africa achieve FATF regulations. It enhanced how it oversees businesses and professions that deal with money but are not banks, employing stronger risk assessment tools and compliance measures.
The FIC also collaborated extensively with law enforcement, promoting the use of financial intelligence in investigations. This resulted in genuine results, such as the freezing of approximately R157 million in suspected illegal funds and the recovery of nearly R144 million in stolen money.

What impact did the listing have on the Economy and Investments?
Being on the Grey List increased the cost and complexity of foreign transactions. It also harmed investor confidence, particularly while South Africa holds the G20 presidency in 2025.
Financial experts predict that now that the country is no longer on the list, investor sentiment will improve.

According to PPS Investments, this may lead to:
Improved access to global capital.
A stronger Rand.
Increased interest in South African stocks
A better climate for the local property markets.

This change contributes to a more favourable view for South Africa's economy and investment landscape.

How do South Africa compares to other countries that was grey listed?
South Africa's 33-month stint on the grey list is comparable to other countries. Tanzania required 33 months, Nigeria 25 months, Mozambique 37 months, and Burkina Faso 57 months.

What's next?
South Africa is already planning for the next FATF mutual evaluation, which is scheduled for 2026-2027. The FIC states that, while leaving the grey list is a significant step forward, the country must continue to improve its mechanisms for combating financial crime.

What Will You Do Every Day in Retirement?

Thu, 30 Oct 2025 12:35:58 GMT

Have you ever stopped to ask yourself: What will I actually do every day when I retire?

It sounds like such a simple question, yet very few people think about it in a practical way. You might have a plan for your finances, but have you thought about your time? Will your days be filled with purpose and activity—or will you find yourself just sitting around, wondering what to do next?

From my experience working with retired clients, people tend to go one of two ways: they either become passive or they stay active and engaged.

When you first retire, the main concern is usually financial. Will my money last for the rest of my life? But after a few months, that anxiety often fades, and a new question emerges: What is my purpose now?

I recently read a remarkable book by Bob Buford called Halftime. Buford was extremely successful financially, but tragedy struck when he lost his son. That loss made him reflect deeply on what truly mattered in life. He realized that while money is important, purpose is what gives life meaning.

Buford explains this through the Sigmoid Curve :

Curve 1 represents the first part of your life—learning, growing, and mastering your craft. This typically takes you up to around age 50, when you might feel like you’ve reached a plateau or are just coasting toward retirement.
Curve 2 is the next chapter—when your focus shifts from inward to outward, from success to significance. This is where you find fulfillment by contributing, giving back, and making a difference in your community.

The retirees who thrive the most aren’t the ones who just relax all day. They’re the ones who stay involved, serve others, and wake up each morning with a sense of purpose.

A Final Thought

The Bible tells us that Abraham had his first child at the age of 100, and his wife Sarah was 90. That story reminds us that no matter your age, there’s still a promise and a purpose over your life. You still have something valuable to give.

So as you plan your retirement, don’t just think about your finances—think about your purpose.
Don’t be passive. Be active. Be intentional. Live with purpose.

How will you be Taxed on Death?

Thu, 30 Oct 2025 06:24:00 GMT

It’s often said that the only certainties in life are death and taxes. While it’s not the most cheerful topic, understanding how taxes work when someone passes away can make a difficult time a little less overwhelming. This article aims to unpack the key tax considerations in a straightforward way, so you can plan ahead and ensure the estate is handled efficiently and in accordance with the law but also to give a little perspective on the advice we give as wealth managers.

Beneficiaries of deceased estates are often shocked and upset when they see the taxes payable in the estate. Understandable of course, as this eats into their inheritance.

Here are a few examples of some of the tax liabilities a deceased estate may face:

Estate duty: Levied on the total value of your dutiable estate. 20% levied for deceased estates of more than R3 500 000 and 25% for deceased estates of more than R30 000 000.
Transfer Duty: Levied on the transfer of ownership of immovable property from the estate to the beneficiary of the immovable property as set out in the last will.
Income Tax:
General Income: Income from salaried employment as well as rental income will be taken into account up to the date of death. Can include income earned as a sole proprietor.
Income from Investments: This can be in the form of Life- or Living annuity income payments but also interest earnings from discretionary investments or savings vehicles. All rebates and exemptions for the tax year will be apportioned up to date of death.
Capital Gains Tax: Capital gains tax can be levied on the gain that arises from the sale of assets to provide cashflow for the estate or beneficiaries. A change of ownership can also trigger capital gains tax. The annual exclusion in the year of death is R300 000 instead of the normal R40 000 annual exclusion.

It’s important to plan and make provision for these costs in your estate, there may be more moving parts if the deceased held offshore assets.

Here are a few ways to reduce your estate’s tax burden:

Acquire (or move) assets through structures like trusts or companies.
Invest in tax-efficient discretionary investment structures where the liability is settled in the structure and not in your personal name.
Pre- and post-retirement investments do not form part of the dutiable estate if beneficiaries are nominated. No interest earnings- or CGT liabilities are payable on these structures.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

Chart of the month: 5 Largest stocks dominate

Fri, 03 Oct 2025 07:01:54 GMT

In this month’s chart we can see that over the last 60 years, top five stocks now make up nearly 35% of the US market — the highest concentration on record. They include: Nvidia, Microsoft, Apple , Alphabet (Google) and Amazon.

Market leadership is becoming increasingly narrow, leaving investors more exposed if these giants stumble.

At Bovest we take this into consideration when constructing our client’s portfolios and it serves as a reminder of the risks of concentration and the value of diversification.

Although almost every investor will have exposure to these large tech companies in one way or another, it is important to limit the level of exposure and not get caught into investing in themes or falling in love with a certain stock.

At a recent event, hosted by pour partners at Ninety-One asset managers, many of the talks still revolved around the impact of AI, not only in the workplace, but investment opportunities as well. This boasts the idea that these stock might still have room to grow, but at a certain point valuations move across the tipping point, and we will see a correction in prices.

Kindly contact our team if you have any questions.

Protecting the Inheritance of Minor Children

Fri, 03 Oct 2025 06:46:13 GMT

In many instances, spouses choose to bequeath their whole estate to each other and the surviving spouse will look after the children. This is also good estate planning. But what will happen to the children and assets should both parents pass away? Underage children can inherit these assets but should be managed through a testamentary trust.

A short video summary of the below can be watched here: https://www.instagram.com/reel/DPOqkx3DP1S/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==

What Is a Testamentary Trust?

A testamentary trust is a legal entity created in terms of a person’s Will, which only comes into effect upon their death. Unlike inter vivos trusts, it is not operational during the testator’s lifetime. The Will serves as the trust instrument, and the testator is the founder.

How Is It Created?

Drafting the Will: The Will must clearly state the intention to create a trust, name the beneficiaries, identify the assets to be placed in trust, and outline the terms and conditions.
Activation: Upon death, the nominated trustees apply to the Master of the High Court for Letters of Authority to manage the trust.
Trustees: It’s advisable to appoint at least one independent trustee with fiduciary expertise to ensure proper governance.

Why Should Clients Consider It?

Protection for Minor Children: Minors cannot legally inherit until age 18. A testamentary trust ensures their inheritance is managed responsibly until they reach maturity.
Special Needs Planning: A Type A Special Trust offers tax-efficient support for beneficiaries with disabilities.
Asset Preservation: Prevents reckless spending by beneficiaries. Trustees manage and distribute assets according to the testator’s wishes.
Managing Indivisible Assets: Useful for assets like farms or holiday homes that cannot be easily split among heirs.
Tax Efficiency: Testamentary trusts may offer tax advantages, especially in the case of special trusts.

Important Considerations

Validity of the Will: If the Will is invalid, the trust cannot be established. Professional drafting is essential.
Trustee Selection: Trustees must be trustworthy, capable, and ideally include an independent party to avoid conflicts.
Costs & Complexity: Testamentary trusts involve legal and administrative costs. Clients should be made aware of ongoing compliance and management responsibilities.
Family Dynamics: Clear communication and transparency in the Will can help prevent disputes among beneficiaries.

Contact me at ruvan@bovest.co.za for more information.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

SA Trusts can now distribute to offshore trusts

Thu, 04 Sep 2025 09:36:49 GMT

For a long time, the South African Reserve Bank (SARB) prohibited money from being transferred directly from local trusts to offshore trusts.
You may have had offshore exposure in your local trust through asset swops and other investment vehicles, but if you want to distribute to overseas beneficiaries, you must first withdraw funds from the trust and then transfer to them through the SARB.

This recently changed. SARS declared that beginning August 1, 2023, it will evaluate and possibly approve petitions to transfer funds from South African trusts to offshore trusts. This adjustment coincides with the South African Reserve Bank's (SARB) recent relaxation of several currency control regulations.
While this new alternative provides numerous prospects, there are tight criteria and a thorough application process. If you are an investor or trustee, you must understand these requirements.
There is certainly no one-size-fits-all answer, and the drawbacks and benefits should be examined while deciding.

Drawbacks:
1. Complex Regulatory Requirements.
• Strict compliance required: The procedure is extensive, necessitating meticulous documentation and adherence to both SARS and SARB regulations.
• Long approval process: Each application is assessed individually, which can take weeks or even months.

2. Cost • Legal, tax, and accounting assistance can be costly.
• Administrative burden: Extensive documentation and regular reporting increase management time and expenses.

3. Tax obligations
• The South African trust must pay all relevant taxes (capital gains, dividends, etc.) before distribution, preventing tax deferral to the recipient. Money held in a trust is often taxed at a higher rate than money held in the name of a company or individual.

4. Uncertainty and Evolving Practice
• New regulations may impact future distributions and compliance needs.
• Disputes: Failure to meet SARS or SARB rules may result in delayed or refused distributions.

Benefits:
1. Global Wealth Diversification.
Offshore trusts may provide superior asset protection during political or economic volatility in South Africa.

2. Succession and Estate Planning
• Multi-Jurisdictional Estate Planning: This allows families with members living in different countries to structure their affairs more efficiently.
• Offshore trusts facilitate the transfer of money to beneficiaries outside South Africa, simplifying inheritance processes.

3. Tax preparation
• Offshore trusts can optimise worldwide tax positions with proper preparation and professional counsel, but must follow all applicable requirements.

4. Regulatory Clarity
• Official Approval: SARS and SARB now provide clear protocols for trustees and investors, eliminating legal risks.

The ability to transfer money from a South African trust to an offshore trust is a useful tool for global estate and investment planning. Professional guidance is essential to maximise benefits and avoid pitfalls.

AFGETREDENES EN MEDIESE KOSTES

Thu, 04 Sep 2025 06:54:31 GMT

’n Nuwe denke oor ouderdom.

‘n Positiewe benadering oor verouderdom word gevorm as gevolg van die ontwikkeling van tegnologie en die mediese wetenskap. Statistieke wys dat die mens langer neem om te verouder en op ’n hoër ouderdom afsterf.

Met veroudering word nuwe perspektiewe oor verhoudings met familie en vriende gevorm. ’n Groter dringendheid bestaan om beplanning uit te voer. Daar is ’n besef dat die tyd aanstap en dat elke oomblik geniet moet word. Die gewoonte om uit te stel en eers later belangrike momente in jou lewe te wil ervaar, verander.

Daar is ’n besef dat die liggaam verouder maar dat die innerlike self steeds wil vernuwe. Laasgenoemde kan aangehelp word deur positiewe denke en gewoontes soos om terug te gee aan die plaaslike gemeenskap, om kennis te deel deur om te skryf of om onderrig te gee. Daar kan selfs oorweeg word om ’n nuwe vaardigheid aan te leer. Een van ons kliente wat ’n afgetrede predikant is, het na aftrede begin om klavierlesse te neem terwyl ander persone ’n nuwe plaaslike taal aangeleer het.

Mediese kostes

Volgens Stats SA se verslag “Profile of older persons in SA” wat in 2023 gepubliseer is, het die gedeelte van die SA bevolking wat ouer as 60 jaar is, verhoog van 7,0% in 1996 tot 9,8% in 2022. Wanneer die bevolking per groep ontleed word, maak die 60 jaar en ouer gedeelte van die betrokke groep die volgende uit: Blankes ongeveer 29%, Indiërs/Asiate 16,5%, Kleurlinge 10,9% en Swartes 7,8%. Hiervan gebruik ongeveer 50% kroniese medisyne, 20% gebruik brille, 10% dra gehoortoestelle en 5% is in rolstoele.Hierdie ondersteunende toestelle is duur en word nie altyd ten volle deur mediese fondse betaal nie. Die verslag noem ook dat meer as 50% van persone ouer as 60 leef in huishoudings wat uitgebreide families huisves.

Mediese uitgawes is seker een van die belangrikste items in ’n afgetredene se begroting. Dit is ’n ongelukkige verskynsel dat mediese kostes met ouderdom verhoog. Die koste van ’n mediese fonds verhoog jaarliks met 3% tot 5% meer as die inflasiekoers en sal ’n al groter persentasie van ons persoonlike uitgawes vereis.

Om die regte mediese fonds volgens persoonlike mediese kondisies te kies, speel ’n belangrike rol om deurlopende mediese uitgawes te beperk. Gap Cover kan ’n belangrike rol speel wanneer mediese fondsvoordele nie al die werklike mediese uitgawes dek nie. ’n Versekeringsproduk wat sal uitbetaal wanneer een van die gevreesde siekte opgedoen word, kan ook help om onverwagte mediese uitgawes te dek.

RIAAN BOTHA

Actionable Debt Repayment Strategies

Mon, 01 Sep 2025 08:15:48 GMT

Debt is often used in case of emergencies but can also be used as leverage to finance the purchase of assets that would otherwise be out of reach. In the case of good- and bad debt, the repayment strategy will help manage cashflow and lower the costs of borrowing. The aim of this article is to help you pay of good debt earlier but may also help those individuals who are under pressure due to debt, to take control of the situation.

It is important firstly to have a comprehensive budget that gives a framework for your spending. This helps you keep track of your cashflow and discourages your emotions from taking over. Before taking out any debt, emergency funds and insurance must form part of your plan. Avoid taking out new debt if it does not fit into the current plan and budget.

Why it’s important to have a structured plan for repaying debt:

Paying more interest over time : Only paying “what you can, when you can,” your payments might be too small or irregular. The debt repayment takes too long, and you pay more in interest.
No clear end date : A plan lets you see exactly when you’ll be debt-free, which can be motivating and helps you track progress.
Poor prioritisation : Not all debts cost the same. A structured plan ensures you pay off high-interest or priority debts first.
Easier budgeting : Knowing exactly how much you’ll pay each month helps you manage cash flow and identify opportunities for extra repayments.
Better discipline and accountability : A structures plan helps to remove any guesswork and prevents emotional spending or skipping of any payments.

Repayment Strategies:

Snowball Method

How it works: List debts from smallest to largest balance. Pay minimums on all and put any extra money into smallest debts first.
Positive: Quick wins from paying off small debts early give motivation to keep going.
Negative: You might pay more interest over time compared to other methods.

Avalanche Method

How it works: List debts by interest rate, highest first. Pay minimums on all and put extra money toward the highest-interest debt.
Positive: Saves the most on interest and often pays off debt faster overall.
Negative: May take longer to see your first “win,” which can be demotivating for some.

Debt Consolidation

How it works: Combine multiple debts into a single loan (often at a lower interest rate). This could be a personal loan, balance transfer credit card, or home equity loan.
Positive: Simplifies payments into one bill and can reduce interest costs.
Negative: If you keep borrowing after consolidating, you could end up in deeper debt.

Refinancing

How it works: Replace an existing loan (e.g., bond, car loan) with a new one at better terms.
Positive: Can lower monthly repayments and interest.
Negative: Extending the term may cost more in interest over the long run.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

Pain vs Pleasure

Fri, 01 Aug 2025 07:03:50 GMT

The date was 26 October 2007 and the S&P 500 index was gaining some momentum after a couple of years of sluggish growth. The index was at $1535. The housing crisis hit, and the index fell off a cliff. On the 31 ^st of January 2020, the world started panicking because the corona virus started spreading like wildfire. On the 10 ^th Dec 2021 markets started getting shaky with the rumours of a Russian-Ukraine invasion.

All these events had a big impact on the S&P 500 index, some more than others. Markets took close to 6 years to recover from the housing crisis. It took close to two and a half years to recover from the Covid crisis and a year and a half to recover from the impact of the Russian-Ukraine invasion.

What was the pleasure from holding on to your investment?

If you invested 2007, your return is 315%.
If you invested in 2020, your return is 97%
If you invested in 2021, your return today is 35%.

These investments assume that you were unlucky enough to have invested at the top of the index and right before the decline.

Always remember this. One cannot time the market, but given time, your investment will generate returns. It is up to you how much you can stomach.

Don’t wait for markets to recover before you invest, as the opportunities present themselves during times of unrest and uncertainty.

GEWOONTES VIR GELUKKIGE AFTREDE

Wed, 30 Jul 2025 10:40:02 GMT

Inleiding

Aftrede is onteenseglik ’n belangrike fase in jou lewe, en waarskynlik die belangrikste. Dit is die samevoeging van voorafgaande fases, soos opleiding en inkomsteskepping, en as persone nie gereed is vir aftrede nie, kan die lewe traumaties wees. Daar bestaan talle onsekerhede tydens aftrede soos die lengte daarvan, gesondheid en beskikbare finansies.

Raad aan persone wat beplan om af te tree, is om tydig met die welvaart beplannings proses te begin – hoe gouer hoe beter. Jy benodig persoonlike welvaart doelwitte wat opgevolg moet word met die begeerte om die regte gewoontes aan te leer. Dit word soms vereis dat jy bereid moet wees om van jou gevestigde gewoontes te verander in die soeke na persoonlike geluk.

Uit ons interaksie met kliënte wat op aftrede staan of reeds afgetree het, kon ons waarneem dat hierdie benadering prakties en logies is, met positiewe, tasbare gevolge. Hier volg ’n paar gedagtes oor welvaart gewoontes waarvan die leser kennis moet neem.

’n Nuwe denke oor ouderdom.

Leef Gesond

Ons ervaring by Bovest is dat talle persone die regte gesondheids gewoontes aanleer om hoë mediese kostes te beperk. Hier is verskillende gewoontes wat aangeleer kan word:

Eet gesond en moenie oorgewig wees nie.

Doen gereelde oefeninge soos op te stap.

Beskerm jou gewrigte en beenstruktuur deur krag- en rek-oefeninge te doen.

Hou jou brein-funksie of kognitiewe vermoë in ’n goeie toestand deur brein-oefeninge soos memorisering te doen.

Volg ’n aktiewe sosiale lewe. Studies het getoon dat mense met ’n aktiewe sosiale lewe minder geheue-probleme ontwikkel. (Health Connection, Cooper, University Health Care, 9 September 2024).

Samevatting

Die persoonlike gewoontes van gelukkige afgetredenes is anders as die van die angstige en getraumatiseerde afgetredenes. Sommige van hierdie gewoontes word oor ’n lang tyd gevorm, terwyl ander makliker aangeleer word.

Retirement Annuities: The Importance of Beneficiary Nominations

Wed, 30 Jul 2025 10:12:26 GMT

Your estate plan evolves as you get older and regular revision of beneficiary nominations on appropriate investments structures becomes a key planning tool. A holistic financial plan is the roadmap to executing these essential estate planning decisions. Let’s explore the importance of beneficiary nominations on your retirement annuity, pension-, provident or preservation funds.

Estate Planning:

Availability of funds: If the beneficiary nomination is valid, the death benefit will flow directly from the insurer to the beneficiary. This process can be much quicker than the process of winding up the estate. The death benefit can be paid to beneficiaries before other distributions from the estate is made.
Estate related fees: By nominating valid beneficiaries, there is no capital inclusion in the deceased’s estate for estate duty and executor fees. This makes it an effective planning tool in reducing the size of the estate and related fees.

Estate duty (SARS): 20% of the dutiable estate after R3.5mil and 25% after R30mil.

Executor’s fees: Maximum of 4.025% (Including VAT) of the deceased estate.

Very Important note:

Section 37C of the Pension Funds Act regulates the payment of death benefits. The act aims to identify dependants of the deceased and ensure that death benefit payments are made to them. The trustees appointed by the fund must identify these dependants irrespective of who was nominated by the deceased. The trustees have a duty to conduct a thorough investigation to ensure equitable distribution of death benefits and rely on the financial advisor to provide relevant facts.

What if no beneficiaries are nominated?

The above process will still follow but it could then be possible that a determination is made to pay the death benefit to the deceased’s estate. The capital will then form part of the estate for purposes of estate duty and executor’s fees. This may also be an intentional decision in order to provide cashflow in the estate for estate related costs or debt. There are however better options in planning for estate cashflow needs.

The above is not financial advice and serves only as factual information. Make sure these nominations align with your long-term financial goals and estate planning by consulting with your financial advisor.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

How to invest in a volatile market

Fri, 04 Jul 2025 07:33:25 GMT

How to invest in a volatile market: 3 Principles to keep in mind

‘In the short term, markets can be very volatile depending on which news story makes headlines. However, over the longer-term investors are always rewarded for staying invested and riding out the waves.’

We know this by now, we have heard it many times before and historical data proves it. Yet it’s easier said than done. When it gets to our own money we are emotionally involved and there is a part of us that believes that this time, it might indeed be different. What if the markets never recover and I suffer permanent capital loss.

And with the increase power of AI and social media, it feels like my portfolio hangs on the thread of a single Tweet.

In this article Stephen Bernard, an actuarial analyst form our partner Allan Gray share his views, backed by statistics and historical evidence:

Read the article here: https://www.allangray.co.za/latest-insights/markets-and-economy/how-to-invest-in-a-volatile-market/

Invest Globally, Prosper Locally: Offshore Strategies for SA Investors

Tue, 01 Jul 2025 10:06:32 GMT

In an increasingly interconnected global economy, South African investors are finding compelling reasons to look beyond local borders when building long-term wealth. Offshore investing offers access to broader, more resilient markets, particularly in developed economies with stronger currencies and more stable political environments. Given South Africa’s constrained economic growth, fiscal uncertainty, and the rand’s vulnerability as an emerging market currency, allocating a portion of your portfolio offshore can serve as both a growth engine and a hedge.

Investing offshore provides exposure to world-leading companies, industries, and fund managers that are often unavailable in the local market. It allows investors to participate in innovation-led growth in sectors like technology, healthcare, and clean energy, which are typically underrepresented on the JSE. Most importantly, it supports diversification—not just across asset classes, but across geographies, currencies, and economic cycles—reducing concentration risk tied to the South African economy.

Key Reasons to Invest Offshore:

Diversification: Reduce reliance on South African markets and benefit from a broader global opportunity set.
Currency Hedge: Protect your wealth against rand depreciation by investing in hard currencies.
Global Access: Gain exposure to top-tier international asset managers and world-class investments.
Growth Potential: Participate in faster-growing economies and industries driving global expansion.

Important Considerations for South African Tax Residents

Before investing offshore, it’s essential to evaluate how your investment aligns with your broader financial planning, particularly around access, succession, taxation, and estate planning:

Flexibility: Will you have access to your funds when needed? What types of investments can you hold?
Succession Planning: Can your investment be transferred to your heirs? Will Capital Gains Tax (CGT) apply?
Tax Compliance: Is the structure tax-efficient, and what must be declared on your tax return?
Estate Structuring: Will your investment attract foreign estate duties? Is an offshore executor required?

An Efficient Offshore Solution: The Offshore Wrapper

A tailored offshore wrapper can simplify many of these complexities, offering a cost-effective and administratively streamlined solution. Key benefits include:

No exposure to offshore estate duties
No South African executor fees on death
No inheritance tax in the offshore jurisdiction
Ability to nominate beneficiaries directly for smooth succession
Creditor protection for assets held within the structure
Consolidation of various investments (e.g., share portfolios, funds) under one structure
Minimum investment from $25,000

Tax Treatment

The offshore wrapper also provides significant tax efficiency:

Taxes are calculated and settled annually by the platform—no action required by the investor
CGT is capped at 12%, and income tax at 30%
Taxes are applied to USD returns, meaning rand depreciation is not taxed

Reach out to me at ruvan@bovest.co.za for more information.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

Should you withdraw your Pension and pay off your home?

Wed, 28 May 2025 08:08:08 GMT

Should you withdraw your Pension and pay off your home?

It's perfectly normal to ask whether you should use your pension to pay off your home when leaving an employer. This decision involves weighing the tax on the withdrawal, the interest saved on your bond, the future growth of your pension fund, and the contributions needed to catch up.

Example:

Anne is 40 years old with a pension fund worth R3,500,000. She bought a home 10 years ago for R3,000,000 and bonded it over 20 years at an 11% interest rate, with monthly repayments of R30,965.

After 10 years, her outstanding bond is R2,258,225. If she withdraws her pension, she’ll receive R2,408,300 after tax—enough to settle the bond and have some cash left over.

By paying off the bond early:

She saves R1,467,919 in interest.
She frees up R30,965 in monthly cash flow.

However, if she keeps the money invested, her pension could grow to R37,921,470 by age 65 (assuming 10% annual growth).

To match this value after using her pension to pay off the bond, she’d need to invest R28,580 per month for the next 25 years. That’s R2,385 less than her current bond repayment, so she does save monthly—but only for the next 10 years. After that, she’s committed to investing R28,580/month for 25 years to break even.

Not everyone’s calculation is the same and there are endless amounts of permutations to this calculation, but it’s important to note that you need to consider all of these factors when making these crucial decisions.

GEWOONTES VIR GELUKKIGE AFTREDE

Wed, 28 May 2025 07:55:01 GMT

Ons ontleed watter gewoontes meewerk om ’n gelukkige aftrede te verseker. Hierdie maand bespreek ons hoe om gesond te lewe tydens aftrede. Mediese kostes verhoog hoe ouer ons word. Die koste van ’n mediese fonds verhoog jaarliks met meer as die inflasiekoers en mediese uitgawes sal in die toekoms ’n al groter persentasie van ons persoonlike uitgawes vereis. Dit is daarom belangrik om so gesond as moontlik te leef.

Hier is verskillende stappe wat gevolg kan word om gesond oud te word:

Eet gesond.
Moenie oorgewig wees nie.
Word sterker deur oefeninge te doen wat jou spiermassa behou.
Doen jaarliks mediese ondersoeke om te bepaal hoe gesond jy is.
Beskerm jou gewrigte en beenstruktuur deur krag- en rek-oefeninge te doen.
Verminder rook en alkohol-inname om jou kanse van kanker en ander siektes te beperk.
Indien jy ’n familie-geskiedenis het van siektes soos kanker en hart-toestande. moet jy vir gereelde mediese toetse gaan om vroegtydig te bepaal of jy nie die siektes onder lede het nie.
Verbeter jou liggaamsbalans deur oefeninge te doen soos om op een been te staan terwyl jy jou tande borsel. Hierdeur verseker jy dat jy nie gereeld jou liggaamsbalans verloor en val nie.
Studies het bewys dat dit help om jou fisieke en geestelike gesondheid te behou deur sewe tot agt ure per nag te slaap.
Hou jou brein-funksie of kognitiewe vermoë in ’n goeie toestand deur brein-oefeninge te doen, soos om nuwe stokperdjies te beoefen of memoriseringsoefeninge te doen.
Volg ’n aktiewe sosiale lewe. Studies het getoon dat mense met ’n aktiewe sosiale lewe minder geheue-probleme ontwikkel. Hulle het ’n verminderde kans om eensaam te voel en depressief te word (Health Connection, Cooper, University Health Care, 9 September 2024).

HABITS FOR A HAPPY RETIREMENT

Wed, 28 May 2025 07:51:40 GMT

We are analysing habits that contribute to a happy retirement. This month we are discussing how to be living healthily to ensure a happy retirement. As we grow older our medical expenses will be increasing. The cost of medical aid increases faster than the rate of inflation every year and will require a bigger percentage of our personal expenses. It is therefore important that we live as healthily as possible.

Here are different steps you can take to age in good health:

Eat healthily.
Avoid becoming overweight.
Become stronger by doing muscle-maintaining exercises.
Go for annual medical checks to determine how healthy you are.
Protect your joints and bone structure by doing strength and stretching exercises.
Reduce smoking and alcohol intake to limit your chances of getting cancer and other diseases.
If you have a family history of diseases such as cancer and heart disease, you should regularly go for medical checks to ensure early detection of hidden disease.
Improve your balance with exercises such as standing on one leg while brushing your teeth. This will help ensure that you don’t lose your balance and fall often.
Studies have shown that seven to eight hours’ sleep every night will help you maintain your mental and physical health.
Maintain your brain function or cognitive abilities with mental exercises such as taking up new hobbies or memory-boosting exercises.
Have an active social life. Studies have shown that people with an active social life develop fewer memory problems. They are less likely to feel lonely and get depressed. (Health Connection, Cooper University Health Care, 9 September 2024).

Diversify Offshore with Structured Autocall Investments

Wed, 21 May 2025 08:26:51 GMT

Structured Investments are pre-packaged investment strategies with predetermined payouts and can be linked to a variety of underlying assets (e.g., equities, indices, commodities, or currencies). Some structured products include downside protection, which can cushion losses in adverse market conditions. By diversifying into different protection levels and structures, you can tailor the risk exposure of your overall portfolio.

An autocall investment is a structured note that can end early if the linked index, like the Nikkei 225 or Euro Stoxx Select 30 Dividend Index, performs well enough. It runs for a fixed period of five years but is reviewed once a year. If the asset is at or above a certain level on a review date, the note "autocalls": it ends, you get your original money back, plus a set return. If it doesn’t autocall, it keeps going. At the end, if the asset hasn’t fallen too far, you still get your money back. But if it has dropped below a certain threshold, you could lose money based on how much it fell.

Who is this for?

Investors looking for offshore exposure with a level of capital protection. Minimum R100 000.

Credit risk:

Structured products are often issued by banks or financial institutions. Spreading investments across different issuers can reduce exposure to the credit risk of any one issuer. In this example Investec is the issuer, but the credit reference can be any of the following: Commerzbank AG, Credit Agricole, BNP Paribas SA.

Protection:

In this example, 100% capital protection in Rand provided the index does not end below 70% of Initial Index Level.

Examples (corresponding to numbers of the graph) assuming R100 000 is invested.

1) Pay out = R100 000 x (17.0% x 1) = R117 000

2) Pay out = R100 000 x (17.0% x 3) = R151 000

3) Pay out = R100 000 x (17.0% x 5) = R185 000

4) Pay out = R100 000 x 100% = R100 000 (Index down <30%)

5) Pay out = R100 000 x 65/100 = R65 000 (Index -35%)

A stock broking account is required for these investments; we can assist in setting up an account if needed. Dollar denominated investments are also available. Interested investors can reach out directly to me at ruvan@bovest.co.za for more information.

The above is factual information only and does not constitute financial advice.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

How to teach children about money

Tue, 06 May 2025 16:35:56 GMT

We made a podcast, The F Word , but it is all about money. The title "F word" comes from the fact that "money" is seen as a swear word in our society — even more so when people are at home.

The truth is that your kids will learn about money somewhere else if you don't teach them. Schools don't teach it very well, and you don't want American media to teach them, because they will learn how to live a life full of debt and buying things.

There are only six out of every hundred people who can retire independently in South Africa. We need to give our children the best chance to be one of those six people.

There are several concepts you want to teach your children, and you can do so in several different ways:

1) Managing Expenses

Kids should learn early on that they can't always get what they want, even if they (you) can afford it. Giving them options is what you want to do. That's why it's a good idea to give them some money to work with.

Example: You can get either the new computer game or the new shoes.
Choices are what life is all about.

2) Make Extra Money

If your child wants the extra pair of shoes and the new video game, that's a good chance for them to learn that if they work hard, they can make extra money and then buy whatever they want.

Ideas:

Take out the trash
Clean their rooms
Wash your cars

Older kids can learn how to be entrepreneurs so they can sell something or make something of value to earn extra money.

3) Start to Save

It's smart to teach your children how to save money by setting aside 20% to 40% of their budget or income for a big expense. This teaches delayed gratification , and if they want something big in the future, they have to forgo short-term pleasures.

You can also start to teach them the difference between investment and saving when they are in high school.

Examples:

Set up a bank account in the child's name and give them "interest" if they save a certain amount each month
Open an investment account directly for the child

Financial responsibility starts with the parents , and it is never too early to start training your kids to be smart with money.

The things you teach your child will have an impact on their life for a long time and will compound , just like investments.

Retirement planning: Growing in Complexity

Tue, 06 May 2025 15:33:02 GMT

As of from September last year we have seen a change in regulations and the new: “2 Post system” was implemented across all retirement products, whether you belong to a Pension fund, Provident fund, or Retirement annuity. The creation of the 2 new pots, essentially leaves you now with 3 Potts:

The Vested Pott: This was the balance of you accumulated fund up until September 2024. This Pott will still be governed as per the old rules of the specific product.
The Savings (Emergency) Pot: With a once boost of 10% (up to a Max of R30 000) of your vested pot. The Savings pot is open for you to make one withdrawal per annum. One Third off all your contributions from September 2024 will go into this pot. Very important to note that if you withdraw from this pot, you will be taxed at your marginal income tax rate immediately, whereafter the balance will be transferred to you
The retirement Pot: The other two thirds of your retirement contributions from September 2024 will go into this pot. This money cannot be accessed before retirement and an annuity will have to be bought after retirement

As of January 31, 2025, the South African Revenue Service (SARS) reported that R43.42 billion had been paid out from the two-pot retirement system's savings pot. This involved 2.4 million applications for tax directives, with 2.4 million directives approved. The remaining applications were declined due to various reasons, including incorrect identification or tax numbers.

It is very important to take the long-term effect of any action you take into consideration, and this is where a financial advisor can really add value: To minimise you tax liability and to ensure you have peace of mind in the years leading up to retirement and the years in retirement.

Different options are available once retired: Life Annuity Vs. Living Annuity, each with its pros and cons and careful considerations and comparisons should be made before deciding on a retirement product.

Kindly contact us for any questions or comments at admin@bovest.co.za

Geo Botha CFP®

Director and Wealth Manager

Two clients, same goal, huge difference

Mon, 05 May 2025 11:24:27 GMT

Have you ever thought about how small changes can make a huge difference in your life? Small changes feel as if it doesn’t have a profound impact on your life at the start, but over a long period of time these small changes have a way of making a huge difference over an extended period of time. The problem is that we become despondent, and we give up because we don’t see the results we were hoping for right now.

The same goes for investing. A lot of us start with an investment, and then after a year or so we give up because we don’t see the growth we were hoping for. This is a behavioral trap we fall into because we don’t see the big picture.

Would you rather save R 1581 or R 13 168 to achieve the same goal? This may seem like a very odd question, obviously you would want to save R 1581. The big kicker is, you will need to start sooner.

Let’s say Ben and Andy both have the same goal of reaching R 10 million at the age of 60. Ben started investing at the young age of 20. Andy started investing at age 40. Both investors invest in the exact same fund and both of them receive 10% growth on their investments. Ben will only need to invest R 1581 p/m, whereas Andy will need to invest R 13 168 p/m.

Start small, start early,and let the miracle of compounding do it’s thing.

Retirement is a life journey

Fri, 02 May 2025 09:54:47 GMT

Retirees’ needs differ according to their age. The needs of a 66-year-old differ from those of an 86-year-old. Dr Elisabeth Kübler-Ross, an American-Swiss psychologist, has summarised the life journey’s five phases of retirement as follows:

The phase of imagination . This period covers the 15 years or more before retirement when people start to imagine or visualise what their retirement will look like one day and how they will enjoy it. This is when they actively plan what finances they will need to enjoy their planned retirement.

The phase of anticipation . This period begins about five years before retirement. Excitement increases as the retirement date approaches and more specific plans for enjoying retirement are made. Travels are identified and a possible retirement address is discussed. Appointments are made with a financial adviser to determine whether sufficient retirement funds will be available for the planned retirement.

Liberation . The planned day of retirement has dawned and you experience mixed feelings about the freedom of retirement, the loss of the security of a permanent job with an income and your dependence on your retirement income. The excitement of the new freedom accompanying retirement is estimated to last about two years.

The phase of reorientation . During this period, the new circumstances of life and opportunities of retirement are enjoyed. These new challenges bring new happiness. Although health and financial issues arise, most retirees enjoy this period which lasts about 15 years.

The phase of adaptation : During the following years, adaptation occurs, along with the acceptance of an increase in illnesses and restricted movement as part of the limitations of old age. The increasing loss of loved ones and the resulting grief and longing become a part of your existence. More attention is given to the bequeathing of affluence.

Retirement is not a solo journey without the family

With retirees now reaching higher ages, even four-generation families including parents, children, grandchildren and great-grandchildren are becoming more common. Multigenerational families living in the same city, town or even household ensure that ageing family members do not become isolated or lonely. This prevents retirement from being a solo journey without social support.

Because of the reality that large numbers of young people are leaving South Africa to go work within an established economy internationally, many local retired parents’ children live in other countries. The advanced digital age in which we live, fortunately, makes it easy to maintain contact with overseas family members, but this does not replace personal familial care.

Aftrede is ’n Lewensreis

Fri, 02 May 2025 09:53:20 GMT

Afgetredenes se behoeftes verskil na aanleiding van hul ouderdom. Die behoeftes van ‘n 66-jarige verskil met dié van ‘n 86-jarige. Dr Elisabeth Kübler-Ross, ’n Amerikaans-Switserse sielkundige het die vyf fases van die lewensreis van aftrede so opgesom:

Die fase van verbeelding . Hierdie periode dek 15 jaar of meer voor aftrede waartydens mense begin verbeel of visualiseer hoe hul aftrede eendag gaan lyk en hoe hulle dit gaan geniet. Dit is wanneer daar aktief beplan word oor watter finansies nodig gaan wees om hul beplande aftrede te kan geniet.

Die fase van afwagting . Hierdie periode begin ongeveer vyf jaar voor aftrede. Opgewondenheid neem toe met die naderende datum van aftrede en meer spesifieke planne word beraam oor hoe om dit te geniet. Reise word geïdentifiseer en ’n moontlike aftree-adres word bespreek. Afsprake word gemaak met ’n finansiële adviseur om te bepaal of daar genoegsame aftree-geld beskikbaar gaan wees vir die beplande aftrede.

Bevryding . Die beplande dag van aftrede het aangebreek en daar bestaan gemengde gevoelens oor die vryheid van aftrede, die verlies aan sekuriteit van ’n vaste werk met ’n inkomste en jou afhanklikheid van jou aftree-inkomste. Daar word gereken dat die opgewondenheid van die nuwe vryheid wat met aftrede gepaard gaan so ongeveer twee jaar duur.

Die fase van reoriëntasie . Gedurende hierdie periode word die nuwe lewensomstandighede en nuwe geleenthede tydens aftede geniet. Hierdie nuwe uitdagings bring nuwe geluk. Alhoewel gesondheids- en finansiële kwessies opduik, geniet die meeste afgetredenes hierdie periode, wat ongeveer 15 jaar duur.

Die fase van aanpassing : Gedurende die daaropvolgende aantal jare word daar aangepas en aanvaar dat die toename in siektes en die beperking van beweging deel is van die ouderdomsbeperkings. Die afsterwe van geliefdes neem toe en die gevolglike hartseer en verlange word deel van jou bestaan. Die nalatenskap van mense se welvaart geniet meer aandag.

Aftrede is nie ’n solo-reis sonder die familie nie

Die ouer-wordende afgetredenes veroorsaak dat selfs vier geslagte families met ouers, kinders, kleinkinders en agter-kleinkinders meer algemeen voorkom. Multi-geslag-families in dieselfde stad of dorp of selfs huishouding verseker dat ouer-wordende gesinslede nie geïsoleer word of vereensaam nie. Dit verhoed dat aftrede ’n solo-reis sonder sosiale ondersteuning is.

Die realiteit dat groot getalle jongmense Suid Afrika verlaat om in ’n gevestigde ekonomie internasionaal te werk, het tot gevolg dat talle plaaslike afgetrede ouers se kinders in ander lande woon. Die gevorderde digitale era waarin ons leef, maak dit gelukkig maklik om kontak te hou met oorsese familie, maar dit vervang nie persoonlike familie-sorg nie.

'Make America Wealthy again': Latest news on US tariffs

Fri, 04 Apr 2025 08:43:08 GMT

The widely anticipated tariffs were announced last night via executive order, on America’s so-called ‘Liberation Day’ and in discussions with our partners at Morningstar, the following should be noted.

The sweeping announcement is intended to ‘make America wealthy again’ as tariffs effectively tax foreign producers on their imported goods, as a percentage of their value. The US is currently the largest goods importer in the world and is currently running a trade deficit (imports more than it exports). President Trump has said that he will not negotiate, however, if countries are willing to lower their charges on US goods, the White House will reduce the rate in effect.

Market impact

US Equities have sold off sharply, particularly those reliant on imported goods, as well as foreign companies that have significant exposure to the US market. At the time of writing, the FTSE 100 was down 1.4% to below 8,500, whilst sterling had appreciated to 1.32 against the dollar. Bond prices have broadly risen as investors have sought perceived safer assets.

SA equities and bonds responded negatively after markets opened. The All-Share was down around -3,5% by end of-day with the decline being led by Financials at -4.3%, while both Resources and Industrials were down approximately -2.4%. The yield on the SA 10-year government bond spiked sharply to 11.3%, a move of 0.8% off the previous day's close. The rand remains relatively range-bound between R18.60 – R18.80 despite general US dollar weakness against most major currencies.

What we know about the Tariffs:

The tariffs that were imposed last night are of a reciprocal nature, meaning that countries are free to retaliate with their own tariffs on the US.

Below are some of the standout tariffs that Trump has imposed across the globe:

· China 34%

· India 26%

· Japan 24%

· EU 20%

· UK 10%

South Africa, which currently applies 60% tariffs on the US, was handed a 30% reciprocal tariff. The effective rate is likely to be lower given that key commodity exports, including gold and platinum, are currently exempted.

What we don’t know

President Trump has not made it clear whether the tariffs will remain in place indefinitely and whether indeed they will remain at the initial level. There are many factors that could impact their longevity, including legal ramifications and future election implications. It is also yet to be seen how and when other countries will react to these changes.

Countries may look to increase their current tariffs on the US or indeed may consider reducing them. Additionally, President Trump has stated that the only way to gain exemption from the tariffs is to set up factories and build products in the U.S., so we await to see how countries and companies react to this proposition.

What’s next?

While volatility and policy uncertainty will likely persist in the short term, we recommend investors keep a cool head. The challenge is to avoid overreacting to the elevated day-to-day volatility and remain focused on your financial plan.

Central Banks have been in a holding pattern in anticipation of actions taken by President Trump, and therefore this announcement may have an impact on future Central Bank policy and interest rates. From a longer-term perspective, we may see implications for economic growth across various regions, however, it is too early to tell at this stage.

From an investment standpoint, we continue to focus on the fundamentals, maintaining a long-term mindset, whilst paying attention to valuations. Market volatility can provide investors an opportunity to rethink their portfolios and find some better-valued investments with more attractive returns, however, it’s important to note that while selloffs will produce bargains, investors shouldn’t buy simply because stocks look less overvalued.

Investment is always full of uncertainty, and therefore the Bovest solutions are constructed with this in mind. Valuations are key in our decision-making process, whereby our research process identifies return drivers from oversold assets, offering investors a high margin of safety. Against that, we also hold defensive assets that can add ballast to portfolios during periods of turbulence, including high quality government bonds and defensive equities such as consumer staples.

Diversification continues to be a strong portfolio strategy in these times of uncertainty.

Regards,

The Bovest Team

GEWOONTES VIR ’N GELUKKIGE AFTREDE

Thu, 03 Apr 2025 10:45:38 GMT

Inleiding

Aftrede is onteenseglik ’n belangrike fase in ons lewens, en waarskynlik die belangrikste. Dit is die kulminasie van voorafgaande fases, soos opleiding en inkomsteskepping, en as ons nie gereed is vir hierdie fase nie, kan die lewe traumaties wees.

Aftrede verg beplanning en beplanning is die gevolg van goeie gewoontes. Ons raad aan afgetredenes en mense wat beplan om af te tree, is om goeie gewoontes te kweek om hulle op die pad na ’n gelukkige aftrede te lei. Uit ons interaksie met kliënte wat op aftrede staan of reeds afgetree het, kon ons sien dat hierdie benadering prakties en logies is, met positiewe, tasbare gevolge.

Baie faktore speel ’n rol in ’n gelukkige aftrede. In die VSA het ’n studie hierdie faktore gelys as goeie gesondheid, finansiële sekuriteit, liefdevolle familie en vriende en ’n doelgerigte of beplande aftrede - What Retirees Want. Dychtwald and Morison, 2022. p115. Hierdie aspekte word onder meer in hierdie boek aangespreek.

By Bovest word kliënte se persoonlike omstandighede in ag geneem wanneer hulle finansiële advies vra. Ons wil mense help om hul finansiële situasie ten beste te benut om gelukkig te kan leef.

Om gelukkig af te tree is egter nie ’n gegewe nie. Jy benodig persoonlike doelwitte wat opgevolg moet word met die begeerte om die nodige regte gewoontes aan te leer. Dit vereis dikwels dat jy bereid moet wees om van jou gevestigde gewoontes te verander. In die soeke na jou persoonlike geluk gaan jou gewoontes uniek wees.

Hoe word Gewoontes Gevorm?

Daar bestaan verskillende teorieë oor hoe om gewoontes suksesvol te vorm. By Bovest vind ons aanklank met James Clear se teorie soos vervat in sy boek Atomic Habits (Penguin Random House, London, 2018, pp47-48), wat vier stappe tot sukses verwoord:

Stap 1: Raak bewus van ’n wenk, insig, doelwit of begeerte.

Stap 2: Hunker om dit uit te voer.

Stap 3: Wat is die reaksie wanneer jy dit uitvoer?

Stap 4: Wat is jou beloning as jy dit uitvoer?

Kom ons kyk na’n voorbeeld van gewoonte-vorming:

· Stap 1: Iemand wat aftree se doelwit is om waarde vir geld te soek – hulle ontleed voortdurend die omgewing waarbinne hulle leef en pas hul begrotings en maandelikse uitgawes oppersoonlike behoeftes voortdurend aan.

· Stap 2: Daar word navorsing gedoen oor watter uitgawe die beste waarde vir die beskikbare geld bied.

· Stap 3: Die aankope word aangepas en die afgetredene voel tevrede dat daar waarde vir geld verkry is.

· Stap 4: Aangesien daar binne begoting opgetree is, is die beloning dat daar fondse beskikbaar is om op ander beplande aankope te spandeer. Indien die koop ’n winskoop was, kan ons daarmee spog en selfs deur ons vriende geprys word as ’n winskopie-jagter!

Deur hierdie vier stappe te herhaal, sal ons in die toekoms met meer gemak optree tot gewoontes van gesonde finansiële bestuur redelik moeitevry gevorm word.

HABITS FOR A HAPPY RETIREMENT

Thu, 03 Apr 2025 10:43:51 GMT

Introduction

Retirement is undeniably an important phase of our lives, and probably the most important. It is the culmination of preceding phases such as training and income creation, and if we are not ready for this phase, life can be traumatic.

Retirement requires planning, which is the result of good habits. Our advice to retirees and people who are planning to retire is to develop good habits that will put them on the road to a happy retirement. From our interaction with people on the point of retirement and others who have already retired, we were able to conclude that this approach is practical and logical, with positive, tangible results.

Many factors play a role in a happy retirement. In the USA, a study listed good health, financial security, loving friends and family and a purposeful or planned retirement.

A happy retirement is not a given. You need to have personal goals and pursue them with the desire to adopt the right habits. It often demands that you are willing to change some of your established habits. In your quest for personal happiness, your specific habits will be unique

How are Habits Formed?

There are different theories on how new habits are successfully formed. At Bovest , we resonate with James Clear’s theory outlined in his book Atomic Habits (Penguin Random House, London, 2018, pp47-48), which gives four steps to success:

Step 1: Your cue would be your goal or desire.

Step 2: You have the craving to put it into action.

Step 3: What is your response to your action?

Step 4: What is your reward?

Let’s look at an example of habit forming:

Step 1: A person who is retiring aims to seek value for money – they are continually analysing their environment and adjusting their budgets and monthly expenditure on personal needs.
Step 2: Research is done into which expenditure offers the best value for the money available.
Step 3: The purchase is adjusted, and the retiree is satisfied that value for money has been obtained.
Step 4: As this has been done within budget, the reward is that funds are available for other planned purchases. If the purchase was a bargain, the retiree can boast about it and be praised by friends for being a bargain hunter!

By repeating these four steps, we will become more at ease with this behaviour until we have formed the habits of healthy financial management fairly easily.

10 Money lessons from the past 10 Years

Thu, 03 Apr 2025 10:36:19 GMT

March this year marked exactly 10 years since I joined Bovest back in 2015. After completing my B.com and honours degree, I first gained experience in the corporate world in Sandton, Johannesburg, before I joined our independent wealth management firm. Throughout the last 10 years I had the opportunity to work with people from all walks of life and from every interaction I learned something. Some inspired me and others deterred me.

It’s a difficult task to summarise them, but here are 10 money lessons I’ve learned over the past 10 years:

Money will not solve all your problems.
On one specific morning I arrived at work at around 7am. The cleaning lady, who was whistling and singing greeted me politely while mopping the floor and going around her business. 30 minutes later we had a meeting with one of our wealthiest clients who was completely stressed out and upset about something his business partner did. The vast contract of the two people’s Net worth and state of mind was a reminder that money will not solve all your problem, neither will money alone make you happy.

Having money does not make you a better person.
I see it often, people who have a large amount of wealth, who has a prominent position at work or runs a successful company might often has an aura of importance around them. They will think their opinion carries more weight and that somehow the universal laws do not apply to them as strictly as the ‘normal’ person.

Money is NOT the root of all evil
In contrast to the above 2 points, I see many wealthy people doing incredible noble things with their money. They provide food for the less fortunate, put children through college, create job opportunities for others 7 make the world a better place in various other ways. Without money this will not be possible.

Having ambition does not make you materialistic.
Talking about money, wanting to increase your income, or working hard to get promoted does not make you materialistic or egocentric. As humans we need to grow and aspire to be better that we were yesterday. It gives us purpose and direction. Money is on of the topics most often discussed in the Bible and making the best of your God-given talents is something we all should work towards. Don’t think small, because it makes others feel uncomfortable, we only have one shot in life.

Tax planning plays a much bigger roles in investments than you think.
I don’t know one single person who is happy to pay more taxes than he or she should, yet we often overlook the opportunities where we can minimise our tax payable. Paying less income tax is important, but for most parts out of our control, it’s saving tax on the growth and payouts of our investment where the big opportunities hide.

Simple habits almost always guarantee success.
Successful people are very good at focussing on their field of expertise, where they make their money and then outsourcing the rest. They don’t overcomplicate their finances, by trying to pick every hot stock or coin that is trending. They realise that automating their finances is incredibly powerful and treat their monthly investments like an expense, it automatically gets deducted from their bank account and they don’t need to waste their decision-making power on it.

Compound interest cannot be overstated enough.
We have all heard wonderful quotes about the power of compound interest and how your money can work for you. Yet most of us still lack the discipline and patience to allow it to work wonders in our portfolios. In every meeting I have with people close to retirement, who have given time the attention, they are in awe of how their money has grown in the latter part of their investment journey.

We all are part of the ‘Money Game’ whether you want to play or not.
If you bought something in the last 2 days, you are part of the economy, the money game. Money does not need to rule your every though, but ignorance is not bliss. Thinking that it’s noble to never talk about money or to think you don’t need money, will have serious consequences. In contrast, having a lot of money doesn’t mean you are winning at the game of money: If money is more important than your relationships, you’re not winning. If money influences your ethics, you are not winning. If your health is suffering in your pursuit of chasing money, you are not winning. Take control over your financial situation and not the other way around.

Be aware of the ‘Lifestyle Creep’
Sometimes also called the “bracket creep” Throughout life you are bound to gradually earn more as the years go by, however the silent killer, less talked about side of the equation is the growth of our expenses. This often happens in small increments and without us realising it: You buy slightly more expensive gifts for your children, you drink more expensive wine, you go out to restaurants more often or you upgrade your brand of make-up or gadgets are home. While none of these are bad in principle, it is worth paying attention to them and invest, before you spend on you ‘Nice to haves’

Enjoy your money.
This is probably the most simple and important lesson, but one that’s not easy to obtain. It’s only once you’ve mastered many other aspects of money and your mindset around finances that you can really enjoy your money in a guilt free manner that’s not guided by outside influences.

Know yourself, know what will bring you joy, work hard, give to others and enjoy your money.

The importance of a financial adviser in your life and wealth journey.

Thu, 03 Apr 2025 10:30:22 GMT

Industry studies estimate that professional financial advice can add up to 5.1% to portfolio returns over the long term, depending on the time period and how returns are calculated. But for most investors who choose to work with an advisor, advice is not just about investments. It's also about helping you pursue your goals, grow your wealth, and take care of the people who matter most to you.

Here are 3 ways a good advisor can help make a difference in helping you reach your goals.

1. Works with you to create a personalized investment plan
When you work with an advisor, you generally receive support from a dedicated professional who can help you bring your plan to life. An advisor will ask you about your personal and financial goals, and work with you to help answer questions such as:

Are your spending and cash flow appropriate?
What does financial protection mean to you, and how important is it?
What does growth mean to you, and how important is it?
Are your investments aligned with your preferences?
How will you manage your investment portfolio?

Together, you can develop a documented investment plan that articulates your long-term goals, short-term needs, risk tolerance, and personal values. This plan can act as a guide for future decision-making, and provides the advisor with information necessary to help you devise and document an appropriate asset allocation and, if applicable, a tax-sensitive investment strategy to help you invest in the asset classes and accounts that best suit your objectives and risk tolerance.

Having a documented investment plan can be a big help in staying the course in times of uncertainty or volatility and can help an advisor provide the guidance and encouragement you may need to stay on track to avoid the sometimes costly mistakes investors can make during volatile markets.

2. Can help identify opportunities to help protect and grow your assets
An advisor who understands your long-term goals is well-positioned to help you identify strategies and techniques that can help you grow and protect your wealth.

This may include:

Retirement income planning. Preparing for your future needs is essential to ensuring you can maintain your lifestyle throughout your lifespan.
Tax-smart investments. Reducing the amount you pay in taxes can potentially help extend the life of your retirement savings and open up options for more growth.

3. Builds a relationship with you to better plan for your specific needs
By getting to know you, your family, and your feelings about investing and your future, an advisor can better plan for your specific needs and help you adjust, amend, or extend your plan to keep it relevant as your circumstances change. An advisor can also help you evolve your plan as you prioritize new goals or manage life events, and help you manage risk and consider opportunities as markets or tax laws change.

By scheduling regular check-ins, perhaps quarterly or semiannually, an advisor can help you to review whether your objectives and needs have remained the same or whether circumstances require you to update your plan.

This can also be an opportunity for the advisor to connect you to specialists with experience with estate tax planning and personal trust services, to help develop a plan designed to help you keep more of your money and may be able to help protect your legacy for generations to come.

A good advisor is a partner on your financial journey
Financial advice is more than just numbers and investments. It's a process that can help you make a plan, chart your progress, and hopefully achieve your personal and financial goals—while feeling more confident along the way.

Why wait? Connect with one of our professional advisors today.

FAQ's on Retirement by Young Professionals

Wed, 19 Mar 2025 08:40:23 GMT

Is retirement an out-of-date pipedream?

With rising living costs and economic uncertainty in South Africa, it’s not surprising that people feel this way. But what we see as “retirement” is changing, the traditional retirement age of 65 has already started to look different because people live longer. We live in a time where passive income and part-time work is as easy as ever and done from anywhere. Although retirement is continually evolving it still is more important than ever to start investing as early as possible and stay consistent over the long-term.

Employer matching your pension contributions, should you max it out?

Yes definitely. It’s free investment allocations and effectively instantly doubles your contributions. The higher the contributions, the better the compounding effect of the capital. You can also deduct your employer’s contributions together with your own contributions in your annual income tax returns.

Are there other ways to supplement your retirement income?

There are many discretionary investment structures (non-retirement) that hold massive tax-and estate planning benefits. It's always a good idea to diversify in the structures that you use to invest because they can be so different. This is true for the actual assets as well, never have your eggs in one basket. Building a business or renting out property can also be effective but holds it’s own risks.

Should you pick the most aggressive investment option for retirement?

If you have time on your side, going more aggressive is the optimal long-term strategy if you can stomach short-term volatility in assets like shares. In South Africa, all pre-retirement structures must adhere to Regulation 28 of the Pension Funds Act and this does limit the level of risk you are able to take with your retirement funds, but alternative structures can supplement your risk appetite. Time in the market is always better than trying to time the market.

What are common retirement investment mistakes?

Starting too late.
Not saving enough, at least 20% of your monthly income should be invested.
Regularly switching between different funds and assets due to short-term volatility (bad investor behaviour).
A lack of diversification.
Failing to adjust your plan as you go – marriage, kids and inflation play a role.

Ruvan J Grobler RFP™

Section 10C: Tax Free Retirement

Wed, 19 Mar 2025 08:22:22 GMT

Saving for retirement has become somewhat unappealing for many investors. This is due to the lack of flexibility and many moving parts that make it complex. Treasury has been trying to combat the flexibility issue with the introduction of the two-pot system in September 2024. These structures do however have major tax advantages.

According to Section 11F of the Income Tax Act, you are allowed to deduct annual contributions made to any pension fund, providend fund or retirement annuity fund. The annual limits are set out as follows to the lesser of:

(i) R350 000;
(ii) 27,5% of the higher of –

• remuneration; or
• taxable income; or

(iii) taxable income of that person before –
• including any taxable capital gain.

According to the provisions set out in Section 10C of the Income Tax act, contributions from previous years that were not deductible at the time will be carried forward to the current assessment year unless they were deducted from a retirement fund lump sum, withdrawal benefit, or offset against a compulsory annuity. Arrear contributions are added to the current year's contributions and treated accordingly.

Ultimately, these disallowed contributions can be used to offset retirement income until the rollover is depleted. Because it is seen as a deduction against gross income, planning can be done in such a way that no income tax is payable for many years into retirement. The disallowed contribution can also be used to increase the tax-free portion of your 1/3 allowable retirement lump-sum.

Important Considerations

Upon the investor’s death, the beneficiaries of the annuity will have a choice. They may either take their portion in cash and pay the withdrawal tax, or they can proceed with the annuity. If they decide to take their portion in cash, that portion of the annuity will unfortunately be included in the estate. This consideration will make disallowed contributions less attractive for investors with offshore beneficiaries.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

March Reset: Building Wealth the Right Way in the New Financial Year

Fri, 07 Mar 2025 05:30:57 GMT

March marks the start of the new Financial Year.

It gives us a time to reset and evaluate the first 2 months of 2025.

January and February are historically the 2 busiest months in the financial industry as clients set to get their finances in order and minimise their tax burden, mostly via Retirement annuities and Tax-Free savings.

March now gives us the opportunity to start with a clean slate, to re-assess our new year's resolutions: What work and what didn’t.

It’s a chance to not only set new goals but to create the right habits and systems.

Over the decades so many get rich quick schemes ruined so many lives. Looking backwards it's easy to see that it was a fraudulent scheme, yet in the present, many people still get caught.

We lack the discipline and patience.

There are essentially 5 ingredients to guaranteed wealth creation:

How early you start
How much you invest
The returns of the market
How long you stay invested for &
The withdrawals you make.

4 of these are entirely within our control, and we have more power than we think. However, it's when we try and speed up the system that things go wrong.

Look after your money, don't just trust anyone and if it promises above 10% guaranteed return, be very careful.

We will share more on this topic in one of our Podcast episodes, coming soon..

Gewoontes vir Gelukkige Aftrede

Fri, 07 Mar 2025 05:24:37 GMT

Gewoontes speel ’n beslissende rol om ’n gelukkige aftrede te verseker.. Nie alle mense het gedurende hul werkende loopbaan die regte gewoontes gevorm om hul volle potensiaal as afgetredenes te kan bereik nie. Hoe kan die regte gewoontes gevorm word?

Deur die boek, “Gewoontes vir Gelukkige Aftrede” te lees, is ’n goeie beginpunt. Die boek is geskryf deur Riaan Botha en word uitgegee deur Bovest Wealth Management vir die gebruik van Bovest kliënte. Die inhoud van die boek gaan in die volgende nuusbriewe bespreek word. Hierdie boek gee erkenning aan die talle Bovest-kliënte wat oor die jare die gewoontes gevorm het om gelukkig te kan aftree. Hulle is vir ons ’n voorbeeld van mense vir wie aftrede die hoogtepunt in hul lewens is.

Aftrede is onteenseglik ’n belangrike fase in ons lewens, en waarskynlik die belangrikste. Aftrede verg beplanning en beplanning is die gevolg van goeie gewoontes. Ons raad aan afgetredenes en mense wat beplan om af te tree, is om goeie gewoontes te kweek om hulle op die pad na ’n gelukkige aftrede te lei.

Nothing is free

Wed, 05 Mar 2025 12:20:27 GMT

There will always be a price to pay when you want something. With most things in life, you will pay a monetary fee for the things you want or need. If you want returns from your investments, you will need to pay a psychological fee. You will need patience, perseverance, grit and determination to enjoy the fruits of your investments.

The S&P500 delivered returns of 678% since 1996. When you look back at it you may think it was easy to make the returns, all you had to do was hold on to your investment. If you invested early 2000, you would’ve had to wait more than 13 years for your capital to return to it’s initial level. My patience has never been tested for 13 years, but I tip my cap to whoever held onto their investment for this long. The good news is that this person would’ve enjoyed an average return of over 20% each year.

If you invested just before covid hit in 2020, you would now have enjoyed returns of over 70%. The big kicker is that your fund would have lost more than 30% of it’s value in 4 months. You needed to stay extremely calm during this time because everyone thought that the world was going to end.

Keeping it short and sweet, you need to understand that everything in life has a fee. It may be monetary or psychological, but courage, patience and perseverance always have a way of paying off over the long run.

Business Owners: Don’t forget about yourself.

Thu, 06 Feb 2025 11:52:51 GMT

Business owners are wealthy, aren’t they? Most of them are in terms of equity in their own business, their main focus. But personal finance as a business owner goes much deeper and that’s where we’ve seen neglect.

Here are two of the biggest mistakes I’ve seen business owners make with their personal finances:

Neglect personal finances: Businesses need cash to expand. And all too often, the decision is made to invest all the cash back into the business instead of using a portion to expand personal portfolios. The thinking is always: “expanding the business will provide higher future income”. But this cycle only continues and compounds the personal finance neglect. We see business owners start planning for retirement after building the business their entire life. The retirement plan is to sell the business, but there is no buyer and no personal investment portfolio to fall back on.

Insurance overcontribution: Life insurance will most definitely provide for loved ones on your passing and protect your finances against disability and illness. It’s a crucial part of financial planning and the first step towards moving toward financial certainty. But big insurance premiums will not bring you closer to financial freedom. I don’t blame you, there are many financial advisors who use business owners as an opportunity for large premium policies with large upfront commissions. Life insurance should be anchored in financial planning principles, only take out cover for the need identified through comprehensive analysis.

Business owners understand risk, and to not diversify your own retirement income is a mistake you’ll come to realize when it’s too late. There can be a healthy mid-point between investing back into your business and investing in your personal finances. We often forget that financial planning provides solutions to problems around tax and estate planning, it’s not merely about insurance and investments.

From operational effectiveness to successful distribution, business owners need to prioritize their time. Making it extremely important to have a trustworthy Wealth Manager who can effectively navigate the pitfalls and challenges of a successful business owner’s personal finances.

What steps can you take with your Wealth Manager?

Review your personal budget.
Assess your level of risk and only cover what’s needed.
Do a stock take of your investment portfolio.
Set financial goals and allocate funds from your budget to reach them.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

How do I pay less tax?

Fri, 17 Jan 2025 07:03:28 GMT

"The only things that hurts more than paying an income tax is not having to pay an income tax." Dewar, Thomas.

This quote is undoubtedly optimistic, but it also contains some truth. Tax payment is both a luxury and a hardship. Although you must pay taxes of some kind, there are ways to lessen your tax liability.

It's critical to distinguish between tax avoidance and tax evasion before we begin. It goes without saying that tax avoidance is against the law and unacceptable. Tax avoidance from an investing standpoint refers to avoiding paying needless taxes as a result of poor investment planning.

As February, the end of the financial year, is drawing near, now is the great time to assess your existing financial status and make the most of the tax benefits available to you.

There are the following choices:

Retirement Annuities

Retirement Annuities (RAs) are among the best options for tax planning. You can take advantage of the following noteworthy tax advantages: Your voluntary donations to a RA are tax deductible up to 27.5% of your taxable income, or R350 000. This is known as an individual's tax benefit. This implies that the money you save in a RA may be taken into account when calculating your income tax and subtracted from the amount of tax due to SARS.

For the duration of the investment, there are no applicable income, capital gains, or dividend taxes.

Depending on prior lump sum withdrawals, up to R550 000 of your lump sum payout may be tax-free upon retirement. The remaining amount is thereafter subject to taxation at the rates specified in the retirement lump sum tax table.

Neither a living annuity nor a RA are subject to estate duty.

Lump amounts received by beneficiaries upon the death of a RA investor are free from estate duty (with the exception of contributions that are prohibited).

Tax-free savings

Different to a RA, the contributions to a tax-free savings account are made from post-tax income and you don’t get the tax benefit on contributions.

However, you are free to take your money out whenever you choose. An excellent approach to supplement your retirement funds or save for a long-term objective, such as your children's university fees.

During the investment period, no income, capital gains, or dividend taxes are due, just like with a RA.

Remember that you have a lifetime contribution cap of R500 000 and an annual contribution cap of R36 000 (or R3 000 per month) for all of your tax-free savings accounts from all providers.

Additional tax tactics you may use include:

Tax loss harvesting:

This tactic involves selling some financial assets at a loss to lower your tax obligation at the end of the year. You can use tax loss harvesting to offset capital gains that result from selling other investments or assets at a profit.

Utilise your exemptions:

You are eligible for a R 40,000 annual capital gains exemption. Perhaps it's time to move across investment funds or take a profit on a well-executed investment.

You can also take advantage of an interest exemption for R 23 800 (R 34 500 for individuals over 65). Your investment plan may need to be reevaluated if your interest exceeds that amount.

Donations: You are exempt from donation tax if you donate R100,000 annually. To lower your estate for estate duty reasons, now is an excellent moment to give R 100,000 to a family trust or your kids.

You will also receive a deduction for your donation if it is made to a charity that has Section 18A approval.

The aforementioned can undoubtedly lessen the tax burden, but it won't eliminate it. Paying your fair amount of taxes is important, but you shouldn't pay more than is necessary.

PJ Botha

FAKTORE WAT JOU WELVAART IN 2025 KAN BEïNVLOED

Fri, 17 Jan 2025 06:42:42 GMT

Aan die begin van elke jaar is dit menslik dat ons wonder of ons welvaartsportefeulje reg gestruktureer is vir die jaar wat voorlê. Kom ons kyk in die kristalbal wat moontlik kan gebeur:

Plaaslik:

Inflasie in Suid Afrika is onder beheer en daarom kan ons verwag dat die plaaslike rentekoerse sal verlaag. Geskiedenis wys egter dat die rentekoers situasie in die VSA ’n bepalende rol speel in plaaslike rentekoers veranderinge.

Die stimulasie van die Suid Afrikaanse ekonomie is ’n prioriteit van die Regering van Nasionale Eenheid (RNE) met die doel om werk te kan skep. Gevolglik sal samewerking tussen die privaat sektor en die regering veroorsaak dat JSE gelyste maatskappye groter wins sal maak en gevolglik kan pryse van die aandele van die betrokke maatskappye op die JSE styg. Ekonome verwag ’n 1,7% reële ekonomiese groei vir 2025 in Suid Afrika.

Die prys/verdienste verhouding van aandele op die JSE wys dat die aandeelpryse in verhouding tot hulle verdienstes goedkoop is en daarom kan verwag word dat maatskappye met bo gemiddelde verdienste se pryse sal styg.

Effekte/bonds se pryse het na die inwerkingstelling van die RNE aanvanklik bo- gemiddeld gestyg maar later weer sydelings beweeg. In ’n rentekoers dalende siklus styg effekte se pryse gewoonlik en daarom kan ons verwag dat in gunstige ekonomiese toestande die groei op beleggings in effekte sal styg.

Internasionaal:

Indien die verkiesingsbeloftes van Pres Tump om onder andere invoer tariewe in te stel, geimplimenteer word, sal dit finansiële markte internasionaal raak.

Die onlangse arbeidsmark statistieke in die VSA toon dat die ekonomie steeds sterk groei. Inflasie vrese kan veroorsaak dat rentekoerse in die VSA langer hoog sal bly.

Geo -politieke spanninge bring onsekerheid by beleggers omdat hulle gekonfronteer word met die vraag of hulle risiko moet neem of eerder kapitaal moet beskerm?

Gaan die ekonomiese inisiatiewe van China om hul ekonomie te stimuleer, suksesvol wees en hoe gaan hul ekonomie reageer indien die VSA invoertariewe instel? Die antwoord op hierdie vraag sal ’n invloed uitoefen op aandelepryse in China .

Gevestigde ekonomië se effekte/bonds se verdienste is laag in verhouding met die van die onwikkelende ekonomië. Indien die effekte in gevestigde ekonomië beter presteer agv dalende rentekoerse, kan hul vir beleggings oorweeg word.

Riaan Botha

15 Januarie 2025

Six Key Themes for 2025

Mon, 13 Jan 2025 07:59:21 GMT

This year promises to be another wild one. These talking points are all driven by external factors that we as retail investors have no control over, but it's important to consider the effect that they can have on our portfolios. Both positive and negative outcomes will hold opportunities for patient investors.

Grey Listing: In February 2023 South Africa was placed on the Financial Action Task Force(FATF) grey list for not meeting international standards on prevention of money laundering and terrorist financing. The FATF will conduct an onsite visit in February 2025 to confirm which actions were taken and make its recommendation in June 2025. If we are successfully removed from the grey list, we can expect increased foreign investment into the South African economy.

SA Interest Rates: In 2024 the MPC finally started cutting rates and with the final meeting in November, the MPC reduced interest rates by 25 basis points bringing the prime lending rate to 11.25%. Economists are predicting further 50-75 basis point cuts throughout 2025. I personally believe we have scope for a bit more, but we have seen the MPC to be extremely conservative.

Donald Trump and South Africa: If Donald Trump pushes for US centred policies while renegotiating trade policies, global trade could be disrupted and might negatively affect South African exports. The AGOA agreement is set to expire in September 2025, but we hope to see it be extended again.

US Dollar Dominance: US Centred policies may cause volatility in global markets which can strengthen the Dollar. Emerging market currencies like the Rand may then weaken. This does however create opportunities for SA investors investing in Dollars.

Geopolitical Tension: Tensions have been high in recent years with the Russia-Ukraine conflict and recently with the Israel-Palestine conflict. We may however see tensions intensify between the US and China. This will disrupt global exports and put extra strain on China’s ailing economy. In 2024 foreign investors became net sellers of China stocks over these concerns.

Advancements in Artificial Intelligence(AI): It’s almost impossible to keep up with the new advancements in AI we see every day. As an example, *in December researchers at Stanford John Hopkins taught robots how to do medical procedures on their own. These advancements may keep on fuelling the growth in AI and tech stocks in 2025.

*https://www.washingtonpost.com/science/2024/12/22/robots-learn-surgical-tasks/?utm_source=superhuman&utm_medium=newsletter&utm_campaign=what-to-expect-at-ces-2025&_bhlid=a0ae4312fd577606199656c699bb259e1b38726c)

Ruvan J Grobler RFP™ (PGDip Financial Planning)

WAT KAN JY VERWAG TYDENS JOU WELVAARTSREIS IN 2025?

Thu, 05 Dec 2024 13:15:20 GMT

Ons weet dat die omskrywing “welvaart” meer as die geld situasie van ‘n persoon beskryf. Dit raak ook die”welstand van ’n persoon “ wat deur sy/haar finansiële situasie geraak word. Met die leuse “Jou welvaart ons prioriteit” poog Bovest om deur middel van professionele finansiële beplanning, publikasies en die sosiale media om elke leser te bemagtig om hul persoonlike welvaart te verbeter.

Die finansiële markte in Suid Afrika het in 2024 as gevolg van ‘n rentekoers verlagende siklus asook die instelling van die Regering van Nasionale Eenheid (RNE) goed presteer. Die heersende positiewe sentiment in die ekonomie sal na verwagting voortduur en daar kan verwag word dat rentekoerse verder sal daal. Hierdie faktore kan meewerk dat 2025 weereens ’n goeie jaar vir beleggers in die plaaslike groei bate-klasse sal wees.

Beduidende politieke veranderinge het ook hierdie jaar in Suid Afrika plaasgevind met die ANC wat sy meerderheid by die stembus tydens die Nasionale en Provinsiale Algemene verkiesing.verloor het. Die voortspruitende vorming van die RNE is deur die finansiële markte goed ontvang. Dit het ’n dinamiese tydperk in die plaaslike politiek ingelui omdat besluite deur middel van konsensus geneem moet word.

Internasionale finansiële markte gaan die inhuldiging van Pres Trump in Januarie 2025 verwerk. Aangesien dit sy tweede termyn is, kan verwag word dat hy volstoom sy verkiesingsbeloftes gaan implimenteer. Daar sal veral met afwagting gekyk word na wat die ekonomiese implikasies gaan wees as hy sy dreigiment om bestaande handelstariewe op invoerbelasting na die VSA te hersien, implimenteer.

Bovest wil graag sy kliënte bedank vir hul lojale ondersteuning gedurende die afgelope jaar. Mag julle saam met julle geliefdes die vrede van Christus tydens kersfees ervaar. Die wens word uitgespreek dat die wat met vakansie gaan, veilig sal reis en uitgerus terugkeer vir 2025.

Riaan Botha

Long-Term Gain over Short-Term Pain: Lessons from life and investing

Tue, 03 Dec 2024 07:29:25 GMT

"I'm never doing this again"

This is what I said last Saturday afternoon as we started to climb the last 5 hills in the last 30 of the 200km cycle race called the Double Century.

It was the 3rd time I have said it, in 3 consecutive years

Only to come back and compete again the next year.

Challenging ourselves physically is about a lot more than just pushing to what we think our physical limits are.

It's about creating the discipline to train, the perseverance to push through and silencing those inner voices when you want to quit.

It's also strange how we quickly forget about the pain and suffering and only remember the positive accomplishment and memories.

I’d like to share an article I recently read from Siobhan Simpson, Head of SA Unit Trusts at Ninety one, who shared a similar experience this year.

She went through the exciting yet uncertain phase of giving birth to her daughter and shared the lessons she learned throughout and how we can apply these insights into managing our own investment portfolio.

She also shares some interesting stats on how investing over different time periods can greatly influence the outcome and why it’s never a good idea to wait for the right moments

Read the article here

Enjoy the festive season with your loved ones and stay safe out there.

Geo Botha

Marketing Director

Financial tips for the silly season.

Mon, 02 Dec 2024 14:41:20 GMT

The "silly season" is a time of year when people tend to spend more money and it can be a good time to review your finances and make plans to save. Here are some tips for managing your finances during the silly season:

Budget : Create a realistic budget for holiday spending that includes gifts, travel, food, and decorations.
Review subscriptions : Check your recurring subscriptions and cancel any you no longer use.
Review insurance : Compare insurance renewals quotes to ensure you get the best deal.
Review medical aid : Check your medical aid plan to ensure it still meets your needs.
Review investments : Consult your financial advisor to make sure your investments align with your goals and risk tolerance.
Use your bonus wisely : If you receive a year-end bonus, consider paying off debt or adding to your emergency fund.
Plan for January : Start preparing for school expenses.
Plan for tax season : Gather documents like medical expense receipts and proof of retirement contributions.
Check your budget after the holidays : Assess whether you stuck to your budget and make plans to pay back any overspending.
Consider free or inexpensive outings : Instead of an expensive venue, consider a picnic at the park or beach, or a hike.
Buy gifts for fewer people : Instead of buying a gift for every person, choose one person to buy a gift for.

Confession time: When I had decided on the topic for this month, I took to AI and within less than 30 seconds, the above content popped out! I reviewed the content and this was very well put, so all credit to AI!

I wish you all a Blessed Christmas, full of joy, love, and peace, and remember the reason for the season. My tip (not AI): Don’t get caught of in the busyness and silliness of the season, rather take time out to become quiet and reflect on what is important in your life. May you have a prosperous 2025.

Hard Lessons Learned Over the Last 4 Years

Mon, 02 Dec 2024 13:08:32 GMT

The past four years taught us how quickly an epidemic can disrupt the world—and how resilient life can be as things eventually return to normal. Financial markets reminded us of their temporary nature, and emotional reactions often led to regret.

For instance, if you disinvested during the market downturn, you likely missed out on the rebound. Similarly, if you splurged on a new home or car, you might now feel the sting of higher repayments.

During the pandemic, South Africa's prime interest rate dropped to 7.25%. However, inflation surged over the next two years, pushing rates to a peak of 11.75%, with today's rate at 11.25%. The impact on debt was significant:

A R3 million home bought at 7.25% had monthly repayments of R23,711.28. At 11.75%, that jumped to R32,511.21.
A R1 million car financed at prime +1% over 60 months went from R20,396/month to R22,625/month today.

These challenges highlighted the need to plan for worst-case scenarios, not just best-case ones. Building flexibility into budgets is essential to handle rising interest rates.

Another key takeaway was the importance of staying invested during market turmoil. For example, the S&P 500, FTSE 100, and JSE Top 40 saw sharp declines in early 2020 due to COVID-19 but rebounded significantly within six months. Those who panicked and moved to money market funds likely missed out on substantial growth.

The lesson is clear: stick to a strategy, plan wisely, and avoid emotional decisions in turbulent times. Speak to your financial advisor when making important financial decisions. We are there to educate, assist and guide our clients in all facets of your life.

How is your Bank Interest Taxed?

Fri, 29 Nov 2024 08:01:20 GMT

After the COVID lockdowns, the SARB pushed up interest rates to fight rising inflation. This made money market rates rise and investors rushed to take advantage. Billions were moved from shares into savings account even though share prices and dividend growth were on the horizon.

Many South African investors choose to earn interest through bank savings and fixed deposits but neglect to take taxes into account. Interest earnings are taxed as income, effectively increasing your taxable income. A shock to many when their tax returns are due. SARS does however give you a small annual exemption on interest earnings:

Under 65 years of age – The first R23 800 of interest income is exempt.
65 years of age and over – The first R34 500 of interest income is exempt.

Here is an example to illustrate the post-tax rate and pay out for three different income tax rates. The conclusion being that high earners should be careful of interest earnings.

Long-term opportunity?

In September, the SARB started cutting interest rates to stimulate economic activity as inflation cooled. Further interest rate cuts are expected as inflation fell to 2.8% in October, a four-year low. Signalling further reduced rates on money market instruments.

Being invested in the money market can be part of an effective financial plan where liquidity is needed in the short-term. But how does it compare to the JSE over a longer term?

Ruvan J Grobler RFP™ (PGDip Financial Planning)

Who will win the US election?

Mon, 04 Nov 2024 09:20:19 GMT

2024 will be remembered as election year, with more people than ever before casting ballots worldwide.
The US elections on November 5th will be the most significant election.
It is the most significant since it will influence not just the future of the nation but also that of the entire world.

The following topics were covered in one of the fascinating discussions we had at the Ninety One Advisor Forum with Kevin Lings, Stanlib's economist as one of the speakers.

Who is going to win the election?
Although it depends on the poll you use, you can't always trust them because they are somewhat biased towards the reader demographic.
The website fivethirtyeight.com, which aggregates all the data, is a poll of polls.
According to this website the difference between Trump and Harris was as much as 3% in September which shrank to 0.9% on November 4.
Trump's side is gaining ground.
Harris has a slight advantage according to the polls, but momentum is on Trump’s side.

According to the polls, Clinton would have won the Trump vs. Clinton election. The explanation that was later offered was that there were many Trump fans who were also closet backers.

You will have to support Trump if you are a betting man, and you look at the election odds.
Trump has a 53.3% chance of winning, while Harris has a 46.3% chance, according to electionbettingodds.com.

In the end, the most important question is whether the election outcome will matter.
The answer is a simple “ yes”. Most things will remain the same if Harris prevails, but if Trump wins there will be significant policy changes.
One of Trump's main campaign pledges, raising import tariffs, will have to be fulfilled if he wins.
He pledged that all Chinese imports would be subject to a 60% import tax on most goods and 100% on Chinese-imported electric vehicles. It now become clear why Elon Musk has suddenly become so interested in the campaign.
Increased import taxes of 10–20% will be applied to all other countries commodities and products, which will hurt South African exports.
Another possibility is that SA will be excluded from AGOA trade, which will have a negative impact on our exports. But it only accounts for 2.7% of total exports. The overall BRICS commerce in SA is seven times that of AGOA.
If this tariff hikes occur, how will China react?
They and all other countries will begin to take care of themselves. There will be more buzz surrounding BRICS and a new currency.

If the tariffs are implemented, everything will ultimately become more costly in the USA, which may lead to a second wave of inflation concerns. To counteract this, interest rates in the USA will need to be raised once more.

The US dollar and US stocks will likely rise if Trump wins, while US bonds will likely fall.
His policies, particularly those pertaining to immigration and imports, will benefit the US economy and job opportunities in the near future.
However, given the rising cost of goods and the reactions of other nations, we will have to wait and see whether it doesn't have a detrimental effect on them in the medium to long run.

Whoever wins will have an impact on the rest of the planet.

Offshore Investing Considerations for SA Tax Residents

Tue, 29 Oct 2024 09:18:02 GMT

We remain positive on the South African equity market and the renewed positive sentiment driven by resilient earnings and political reform. The JSE (Johannesburg Stock Exchange) however, constitutes less than 1% of global stock markets. If your portfolio only consists of South African assets, your overall portfolio risk may be concentrated in region specific factors. You may also run the risk of losing out on opportunities not offered by local markets.

As we head towards the final quarter of the year, this may also serve as a reminder that your annual R1m discretionary allowance and the foreign capital allowance of up to R10m expires on 31 December 2024. It may also be a good time to capitalise on US Dollar weakness for long-term currency hedging.

What should you be careful of when investing directly offshore?

One of the risks in offshore investing is probate. Offshore probate refers to the process of applying for the right to deal with a deceased investor’s foreign assets and proving their will as a valid legal document in the foreign jurisdiction.
The second risk is situs tax that will be encountered in both the US and UK. Situs tax refers to the taxation of assets based on their location or situs. In other words, it is the jurisdiction where the property is located, or deemed to be located, that determines the taxation of that property.

What structures provide solutions?

Structures where the foreign assets are held by a local nominee company.
“Wrapped” structures like sinking funds or endowment policies.

Estate planning benefits?

It’s important to consider the estate planning benefits of using the correct structure. Normally structures that allow beneficiary nomination provides regulatory- and tax benefits. It can be useful in lowering estate related costs but also provide cash flow to beneficiaries before the estate is wound up.

The above considerations may also not be applicable to certain investors. There are structures for those investors who have ceased or are ceasing to be South African tax residents. It may also be suitable for the investor’s adult children living abroad (non-SA tax resident). Estate duty or the equivalent may be payable in their country of residence.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

What is the effect of the first 100 days of the GNU on your investment portfolio?

Wed, 23 Oct 2024 11:32:42 GMT

The Government of National Unity (GNU) was formed between the African National Congress (ANC) and nine other political parties. The GNU governance structure was established after the 27 May 2024 national and provincial elections during which no political party obtained a 50% plus vote. In his inauguration address on 19 June 2024, President Ramaphosa describe the GNU as the beginning of a new era in South African politics.

The previous GNU was formed in 1994 and dissolved in 1999. The aim of the previous GNU was to govern through consensus seeking and not governed by the winner take all approach. The vision of this GNU is to set South Africa on a path towards social cohesion and nation-building.

This political shift has fostered optimism around the country’s economic future. The collective effort from politicians to participate in GNU was welcomed by business and the relationship between the private sector and government has been improved. A positive vibe was created on the local financial markets and the South African Rand broke R18 to the US Dollar. The performance of the local asset classes from 1 June 2024 to 30 September 2024 were:

The JSE All Share Index rose with 12.83%
SA All Bond Index increased with 16.29%.
Listed Property Index Tracker Funds increased 25.77%
Money market rates saw a 0.25% decline.

The GNU was not the only factor that influenced the prices of asset classes and other economic indicators, like interest rates, also played a role. It is however the positive economic sentiment that GNU has created through the collective decision-making process from different political parties that played a positive role in the minds of investors.

The way forward?

In the short term we could expect that investment portfolios will perform above average depending on that the economy performed well, and that earnings of listed companies increases.

What is the lifespan of this GNU? The previous political collective decision-making structure survived for 5 years. In the nineties South Africa had a dominant political party in Parlement as well as a better performing economy. However, this time is different, and a performing economy with prosper financial markets could create a scenario that it is better for political parties to be part of GNU than to be left out.

Dr AP Botha

21 October 2024

Teaching our children healthy financial habits.

Mon, 07 Oct 2024 15:40:49 GMT

Habits, as defined by the Oxford Dictionary, are “a settled or regular tendency or practice, especially one that is hard to give up.” Good habits can make a huge difference in how we live, and they often become second nature. Think about the simple act of closing the garage door when leaving for work—it’s automatic. Now, imagine if your financial habits could be just as effortless.

Building strong financial habits can make managing your money easier and improve your financial health. Successful investors follow key principles: they know how to save and invest, practice good habits, and steer clear of costly mistakes.

Take Control of Your Money

From childhood, allowances teach us the basics of money. Setting a budget for kids helps them make smart choices. If they spend their pocket money too quickly, they learn the value of saving and the importance of waiting for what they really want.

As we grow older, these early lessons shape our money habits as adults. Whether you’re paid weekly or annually, the first step to financial control is knowing the value of your income. A budget helps you make the most of what you have.

If you’re new to budgeting, start now. Don’t guess with your expenses—use one of the many budget templates available online. The key is building the habit of budgeting and sticking with it. Christine Benz from Morningstar has a great guide titled How to Assess Your Cash Flows and Create a Budget to help you get started.

Keep It Simple With Basic Financial Rules

The simpler your habits, the easier they are to maintain. For your finances, stick to these straightforward rules:

Spend less than you earn.
Pay yourself first (save), then spend what’s left.
Save for big purchases rather than using credit.
Pay off debt quickly.
Have an emergency fund.

Start Early—No Matter How Small

Some people think they need a lot of money to start investing, but even small amounts grow over time, thanks to compounding. The sooner you start saving and investing, the better. Even if it’s just a little, investing early sets you on a path to accumulate wealth over time.

Starting small helps you build the habit of saving, which can become one of your strongest financial tools. It’s better to start now with what you have than to wait and save larger sums later.

Time Is On Your Side

When it comes to investing, young people have an advantage—time. Even modest investments can grow significantly over time due to compounding.

For example, a 22-year-old who saves R200 a month at a 5% annual return could have over R362,000 by age 65. In comparison, someone who waits until 35 and saves R300 a month at 6% will have just over R300,000 by the same age. Those extra years make a big difference.

Understand the Power of Compounding

Money saved in your 20s and 30s has decades to grow. For instance, R1 growing at 6% annually becomes R10.30 in 40 years. The same R1 will only grow to R3.20 after 20 years. The earlier you start, the more your money will grow, reducing the amount you’ll need to save to reach your goals.

Teach the “Rule of 72”

A great way to explain the time value of money is the "Rule of 72." Divide 72 by the interest rate to see how many years it will take for your money to double. This concept helps people understand why starting early is so valuable—even small investments now are more beneficial than larger ones later.

Avoid Lifestyle Inflation

As your income increases, it’s tempting to spend more. While it’s okay to reward yourself for hard work, be careful not to let your spending grow faster than your savings. The more you spend, the more you’ll need to maintain that lifestyle in retirement.

A smarter approach is to live conservatively. By keeping your spending in check and avoiding unnecessary debt, you can save more while you’re working and create a more affordable lifestyle for retirement.

In Conclusion

The key to financial success is staying motivated and consistent. You’ll have setbacks, and that’s okay—just keep moving forward. Share your goals with your family to stay accountable, break your goals into small steps, and celebrate your progress along the way. With patience and dedication, you can build better financial habits and enjoy a more secure future.

Pay Less Income Tax in Retirement

Wed, 25 Sep 2024 06:56:27 GMT

The below is a basic scenario I recently worked on for a client. The individual had around R7mil in the specific Retirement Annuity and needed R55k per month after tax as income from it. One of his concerns was if he should take the 1/3 lump sum allowed or if he should reinvest his entire retirement savings in a post-retirement structure. The below looks at these two scenarios.

There are many complexities around structures, disallowed contributions, asset allocation and income percentages that are ignored and simplified in this example.

Scenario 1:
Invest full retirement savings in post-retirement product.
First year income: R77 000 (R924 000 annually)
After tax: R55 062 (R660 744 annually)
Monthly tax payable: R21 938

Scenario 2:
Take R900 000 in cash and reinvest in flexible investment.
Lump sum after tax: R825 300
Voluntary income from lumpsum : R10 000 (R120 000 annually, no income tax on withdrawal)

Retirement Lump Sum tax table:

First year income from 2/3 retirement portion: R60 450 (R725 400 annually)
After tax: R45 077 (R540 924)
Monthly tax payable: R15 373

Income: R45 077 + R10 000 = R55 077 per month

Difference in income tax paid in scenario 2 compared to scenario 1: R6 565 per month (R78 780 annually)

The real tax saving starts from year two as you also take the lump sum tax into account in year one (R78 780-R74 700). The reinvestment of the lumpsum cash does also provide you with flexibility and extra cash flow if needed. A lower income need will provide a larger income tax saving, which is probably the more important lesson to learn here.

A comprehensive retirement plan is extremely important and professional advice is a necessity.

Ruvan J Grobler RFP™ (PGDip Fin Planning)

OLIMPIESE SPELE EN WELVAARTSWENKE

Mon, 02 Sep 2024 08:24:31 GMT

Die pas afgelope Olimpiese Spele in Parys het aan toeskouers – die skrywer was bevoorreg om sekere items self by te woon- waardevolle welvaartswenke te gee. Alhoewel die openingseremonie omstrede en uit ’n Christelike perspektief onaanvaarbaar was, was die Spele goed georganiseerd.

Dit is bekend dat suksesvolle welvaartskeppers persone is wat georganiseerd en planmatig hul welvaart doelwitte nastreef. As toeskouer was my ervaring dat die Olimpiese Spele se organisasie die groot skare mense gedissiplineerd en hulpvaardig bestuur het. Die verkope van alkoholiese drankies is by byeenkomste verbied en talle vrywilligers het diens gedoen om die toeskouers te help om betyds hul sitplekke in te neem.

Dissipline speel ’n groot rol in die lewe van suksesvolle welvaartskeppers. Die toeskouers by die Olimpiese Spele was gedissiplineerd en het geduldig die polisie toegelaat om hul rugsakke te deursoek vir ontoelaatbare items. Dit het ’n mens nogal herinner aan die deursoek proses op internasionale lughawens wat jou onwillekeurig laat besef het watter risiko’s geloop word met die aanbieding van internasionale byeenkomste.

Trots en netheid is ’n belangrike eienskap by suksesvolle welvaartskeppers. Die toeskouers by die Spele het gewys dat persoonlike trots en netheid vir hulle belangrik is deur die stadions skoon te laat na ’n byeenkoms. Dit was vir my as ’n Suid Afrikaner opvallend hoe skoon die stadions was na ’n sport byeenkoms in vergelyking met plaaslike ervarings.

Seker die belangrikste wenk vir ons as welvaartskeppers was die sportpersoonlikhede se toegewydheid en vasberadenheid om te presteer. Ongeag die realiteit dat sport persoonlikhede van ryk lande meer finansiële ondersteuning van hule sportorganisasies ontvang as diè afkomstig van die sogenaamde arm lande, het die deelnemers goed presteer. Die deelnemers van Suid-Afrka het ondanks min finansiële ondersteuning van sportorganisasies bo-gemiddeld presteer gelewer en 6 medaljes gewen.

Om welvaart te skep en te vermeerder is nie slegs tot voordeel van die betrokke persoon nie maar ook tot voordeel van sy/haar familie en die betrokke gemeenskap. Die Olimpiese Spele se deelnemers se wenke aan welvaartskeppers is om jou welvaarts doelwitte met deusettingsvermoë en planmatig optredena na te streef.

REFLEKSIE NA DIE OLIMPIESE SPELE

Mon, 02 Sep 2024 08:09:17 GMT

Menige Suid-Afrikaner het vasgenaal gesit voor die televisie tydens die Olimpiese Spele in Parys vanjaar.

Ons het ons ingeleef en die hoogtepunte en laagtepunte van atlete meegemaak, die blydskap asook die hartseer en teleurstellings.

Ons besef wat dit die atlete gekos het om net daar te kon wees. Vier jaar se voorbereiding en ongelooflike harde werk vir een wedloop of item.

Ek was bevoorreg om hierdie Olimpiese Spele persoonlik mee te maak in Parys, aangesien my dogter Suid-Afrika verteenwoordig het in die driekamp kompetisie.

Graag deel ek my ervaring , observasie en lesse wat ek hieruit geleer het. Meeste van dit kan ons toepas op die lewe in die algemeen maar ook op ons beleggingsstrategie.

Tyd – dit neem soms jare om jou doelwit te bereik. Soms, soos in my dogter se geval 22 jaar.

Toewyding – slaap, eet en leef jou doel.

Dissipline – doen elke dag wat jy moet doen. Moenie kompromië aangaan nie.

Fokus – weet wat jou doelwit is en werk elke dag daaraan.

Opofferings – daar is baie dinge wat op jou pad kom waarvoor jy “nee” sal moet sê. Dis nie maklik nie.

Span – kry ’n span wat jou ondersteun en van advies kan voorsien, aanspreeklik hou, moed inpraat en wat in jou glo.

Finansies – dit kos ’n fortuin om jou droom te bereik. Veral in Suid-Afrika. Probeer hulp kry van borge.

Onsekerheid – dit is moeilik om te presteer as daar onduidelikheid is oor wat van jou verwag word en wat jy moet doen. Om dit te oorkom verg ’n baie sterk persoon met ’n onwrikbare karakter.

Ervaring – geniet alle fasette van die pad na jou doelwit toe. Leer en pas dit toe soos jy aangaan. Daar sal hoogtepunte en laagtepunte wees. Daar sal uitdagings wees. Jy sal bo uitkom.

Geloof - glo in God. Hy loop elke tree saam met jou en Hy sal jou nooit verlaat nie.

Balans – wanneer ’n mens kyk na bogenoemde punte asook wat dit van ’n mens verg om te kwalifiseer vir die Olimpiese Spele, lyk balans maar
moeilik, maar dit is belangrik.

Sukses – dit is anders vir elke persoon. Ek glo dat jy sukses bereik het wanneer jy vrede en aanvaarding ervaar. Wanneer genoeg, genoeg is.

“DIE DAG” - so, jy het 4 jaar voorberei vir “die dag”!? Dit kan goed gaan of dit kan minder goed gaan, op “die dag”. Was dit ’n mors van tyd en geld? Nooit nie. Alles wat jy geleer het op die pad soontoe gaan jy vir die res van jou lewe gebruik en sou jy ’n minder goeie dag op “die dag” gehad het, onthou al die hoogtepunte en goeie tye op die pad soontoe en weet dat daar is lewe na “die dag”, dis jou keuse!

Wat het bogenoemde te doen met beleggings? Tyd in die mark is baie belangrik. Bly gefokus, wanneer dinge moeilik gaan hou aan met jou bydraes. Wanneer markte wisselvallig is, bly by jou beleggingsstrategie. Wanneer markte af is en jy moet aftree, “die dag” byt vas. Môre is nog ’n dag. Moenie paniekbevange en emosioneel raak nie. Werk saam met jou beleggingsspan. Weet

dat hulle jou by jou einddoel sal kry. Weet dat hulle die ervaring het. Weet dat hulle suksesvol is. Sterkte vir die pad vorentoe. Daar is lewe na die Olimpiese Spele.

Liquidity Risk in your Investment Portfolio

Thu, 22 Aug 2024 12:54:46 GMT

Liquidity Risk in your Investment Portfolio

There is nothing worse than being in a pickle and you have no emergency funds. This is when people get into unnecessary debt with high-interest unsecured debt via credit cards and personal loans.

To avoid this, you must plan your investment portfolio around long-term growth as well as liquidity needs. Setting financial goals in the financial planning process is an effective tool in providing a practical framework. But it also gives wealth managers possible investment horizons and importantly, the liquidity needs of a client.

There is a tightrope to walk between providing liquidity and enjoying long-term growth and your age and specific needs will determine how far you lean towards each side. Here are some of the liquidity risks that you may face in your investment portfolio:

Product Rules: Certain structures allow partial access to funds, and some offer no access to funds within a certain term.

Examples:

Compulsory investment products like pre- and post-retirement structures.
Discretionary investment products like endowments, sinking funds and structured products.

Asset Allocation: With short-term volatility in growth assets like equities you may run the risk of selling during a downturn, locking in losses. It’s important to rather consider the use of conservative interest-bearing assets when planning for short-term or emergency liquidity needs.

Demand: All assets are not desirable by investors. An example can include private equity shares that may not be well known or desired. This will make it difficult to sell when funds are needed because there might not be a willing buyer.

Availability: In certain instances, investor funds are pooled together in order to buy a large underlying asset. Some of these assets can have a maturity date attached leaving no room for buy-backs before maturity.

How can you assess the need with asset allocation in mind?

High liquidity – Conservative allocation – Low volatility
Low liquidity – Aggressive allocation – High volatility

*This is not financial advice.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

DIE REGERING VAN NASIONALE EENHEID EN JOU BELEGGINGSPORTEFEULJE

Tue, 30 Jul 2024 06:53:07 GMT

DIE REGERING VAN NASIONALE EENHEID EN JOU BELEGGINGSPORTEFEULJE

Die Regering van Nasionale Eenheid (RNE) het ’n positiewe invloed op beleggingsportefeuljes omdat die beleggings in plaaslike aandele en effekte (bonds) se pryse sedert die tot standkoming van die RNE gestyg het. Waarom het hierdie positiewe tendens plaasgevind?

Op die kort termyn het ‘n positiewe sentiment ontstaan omdat politieke partye wat ’n groter rol vir die privaat sektor in ekonomiese groei voorstaan, deel van die RNE is. Sedert die RNE ingehuldig is, het die pryse van aandele op die Johannesburg Sock Exchange (JSE) gestyg omdat beleggers verwag dat die verdienste van die maatskappye wat voordeel gaan trek uit regeringsaktiwiteite gaan styg, Dit is veral aandele van plaaslike banke en kleinhandelaars wat gewild is.

Die koerse van effekte (bonds ) het gedurende genoemde periode gedaal en gevolglik het die beleggingswaarde van bestaande effekte gestyg.

Op die medium termyn word daar verwag dat die plaaslike rentekoerse (moonlik alreeds gedurende September 2024) gaan verlaag en gevolglik sal ’n dalende rentekoers siklus ook ’n positewe invloed op beide die beleggings in die JSE asook effekte uitoefen.

Sedert die rentekoerse gedurende 2022 gestyg het, het talle beleggers geld in die geldmarkte by die banke gaan belê. Die inkomste belasting implikasies vir rente draende beleggings is dat belasing vrystelling vir persone jonger as 65 jaar R 23 800 is en vir persone 65 jaar en ouer is die vrystelling R 34 800, waarna die rente onvang as ’n inkomste belas word volgens persoonlike belastingskale. Dit is daarom belangrik dat beleggers in die geldmark moet seker maak wat die na-belaste groeikoers van hul beleggings is.

Beleggers in die huidige veranderende beleggingsomgewing moet ’n evaluering van hul bestaande beleggingsportefeuljes doen om seker te maak dat hul bestaande beleggings steeds die beste na-belaste opbrengs, volgens die betrokke persoon se risiko profiel, lewer. Indien daar enige onsekerheid bestaan, word aanbeveel dat van die professionele kundigheid van Bovest se adviseurs gebruik gemaak word.

The Impact of Interest Rates Cuts on your Investments

Tue, 30 Jul 2024 06:43:29 GMT

The Impact of Interest Rates Cuts on your Investments

Interest rate cuts have been on our lips since the middle of 2023, but global inflation has been extremely sticky in the current cycle. Now once again it seems that markets are pricing in cuts from September on. These predicted cuts are largely dependant on what inflation does. SA inflation recently cooled down to 5.1% from 5.2% year on year and the overall economy looks to be slowing down.

Many are sceptical of the influence that monetary policy has on South Africa. We need intervention that support economic growth, regardless of your opinion on monetary policy. An interest rate cut should promote activity in our economy as capital will once again start moving around searching for opportunities due to lower interest rates. Bonds have an inverse relationship with interest rates while cash has a direct relationship.

Listed companies will benefit from lower payments on their own debts while consumer spending picks up. This is positive for shareholders as balance sheets improve and shares become attractive. Especially at this time where valuations show great upside for SA equities.

Interest rate cycles often coincide with the economic cycle. Knowing where we are in the economic cycle is essential in identifying opportunities, it gives us a framework on risk and volatility. Just like countless times before, we have made it to the light at the end of the tunnel.

“History Doesn't Repeat Itself, but It Often Rhymes” – Mark Twain

Ruvan J Grobler RFP™

*This does not serve as financial advice.

Press Release - FSCA warns public against individuals impersonating Bovest Wealth Management (Pty) Ltd

invest@bovest.co.za (Bovest Admin) — Wed, 24 Jul 2024 07:33:35 GMT

FSCA Press Release 22 July 2024

FSCA warns public against individuals impersonating Bovest Wealth Management (Pty) Ltd

The Financial Sector Conduct Authority (FSCA) warns the public to be cautious when conducting financial services business with an individual or group of individuals purporting to be Bovest Wealth Management (Pty) Ltd (Bovest Wealth) (FSP 35064) and its consulting specialist, Mr Godfried Kotze (Mr Kotze).

It was brought to the attention of the FSCA that certain individuals are using Telegram groups to solicit funds from members of the public by claiming to be associated with Bovest Wealth. The individuals behind the Telegram groups use the name of “Bovest Wealth” and “Mr Kotze” to solicit investment into amongst others, forex and Bitcoin. Members of the public are promised unrealistic returns on their investment.

Bovest Wealth has informed the FSCA that it does not use Telegram to market its services and has denied any association or relationship with the individuals using its name and that of Mr Kotze.

The public is urged to act with care when investing their funds. There are many fraudsters operating scams. South Africans loses millions of rands every year to fraudsters. Illegal operations are sometimes well-disguised as legitimate operations. The public is advised to be on the lookout for the tell-tale danger signs when dealing with persons offering attractive investment opportunities. These red flags include unrealistic returns that is offered, claims that the entity or person does not require an FSCA licence, vague information about the investment product, or the company that provides the financial product claims that the investor must act urgently, and requirements to pay more money over to have their investment returned to them.

One of the following methods may be used to confirm the status and FSP number of a service provider or a person that claims to be an authorised service provider:

1) 1) Toll-free number: 0800 110 443

2) 2) Online search for authorised financial institution by license category: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx

3) 3) Online search for a financial institution that is an authorised FSP in terms of the FAIS Act: https://www.fsca.co.za/Fais/Search_FSP.htm END

Enquiries:

Financial Sector Conduct Authority

Email address: Communications@fsca.co.za

Telephone: 0800 203 722

Website: www.fsca.co.z

Offshore Investing and the Probate Risk

Mon, 01 Jul 2024 10:10:06 GMT

Many South African investors choose to invest directly offshore by physically moving capital offshore through their annual allowances (R10 million foreign capital allowance and a R1 million single discretionary allowance).

This is done for diversification or financial planning needs and can be full of pitfalls. One of these risks in offshore investing is probate. Offshore probate refers to the process of applying for the right to deal with a deceased investor’s foreign assets and proving their will as a valid legal document in the foreign jurisdiction.

There are legislative differences in all jurisdictions and will most certainly provide complications on the investor’s death. Effectively there would be a deceased estate in the foreign jurisdiction and in South Africa. This could also imply that executor’s fees would apply in South Africa and the equivalent thereof in the offshore jurisdiction where it may not be as regulated and capped as in South Africa.

If probate applies in the jurisdiction, the investor will need a will that will be legally considered in that jurisdiction and specifically mentions and gives instruction on the proceeds of the assets. This can typically make the already longwinded process even longer and leave dependents without access to assets.

How can you avoid probate? Here are two options:

Use an open-ended structure where the foreign assets are held by a local nominee company.
Use a “wrapped” structure like a sinking fund or endowment policy where beneficiaries can be nominated.

There are major differences between these two structures regarding tax and liquidity, making it very important to do effective financial planning around these variables.

These structures are carefully designed with the specific jurisdictions in mind. If the requirements are met as set out by the product rules, the risk of probate may not apply. Importantly these structures provide a clear course of action on death and may give dependents access to capital if needed.

This does not serve as financial advice*

Ruvan J Grobler RFP™

DIE INVLOED VAN DIE NUWE REGERING OP JOU BELEGGINGSPORTEFEULJE

Mon, 01 Jul 2024 10:00:07 GMT

Die nuut gestigte Regering van Nasionale Eenheid (RNE) het ’n tydperk van samewerking tussen verskillende politieke partye ingelui. Hierdie samewerking behels dat die betrokke politici deur middel van ’n ooreenkoms gesamentlike verantwoordelikheid neem vir die regering. Hoe raak hierdie verwikkeling jou beleggingsportefeulje?

Voor die verkiesing het die destydse ANC regering met inisiatiewe begin om die privatesektor te betrek by ekonomiese ontwikkeling, soos onder andere die verbetering van die elektrise netwerk om sodoende beurtkrag te beëindig. Hierdie inisiatief het die beleggersgemeenskap plaaslik sowel as internasionaal geintriseer vir moontlike toekomstige beleggings. Die vraag was of die nuut verkose regering sou voortgaan om die privaatsektor by ontwikkelingsprojekte te betrek?

Die aanvaarding van die RNE as regeringsvorm en die deelname van verskillende politieke partye waaronder die Demokratiese Alliansie (DA) vergroot die moontlikheid dat die privaatsektor betrokke sal bly by ontwikkelingsprojekte. Dit sal daartoe lei dat die Suid-Afrikaanse ekonomie teen ’n hoër ekonomiese groeikoers sal ontwikkel.

Hierdie nuus het daartoe gelei dat die JSE-indeks byvoorbeeld op 19 Junie met 3,5% gestyg het, asook dat die Rand se waarde heelwat versterk het sedert die verkiesingsuitslae bekend gemaak is. Die pryse van effekte (bonds) het ook begin verbeter namate die sentiment vir ekonomiese groei verbeter het. Indien daar voortgegaan word om die privaatsektor by regeringsprojekte te betrek, sal die positiewe marksentiment voortduur.

Bykomend tot die huidige positiewe politieke nuus oor die ekonomiese groeisentiment in Suid-Afrika, is die moontlikheid dat rentekoerse binne maande kan verlaag. Verlagende rentekoerse sal ook bydra dat pryse van effekte (bonds) en aandele plaaslik sal verhoog.

Riaan Botha

Buy-and-sell agreements. Protecting your business interests.

Mon, 01 Jul 2024 09:24:47 GMT

Buy-and-sell agreements. Protecting your business interests.

If you’re running a business with partners, having a buy-and-sell agreement in place is crucial.

But why, you may ask? The answer is pretty straightforward.

Here’s the deal: When you pass away, your shares in the company become part of your estate or transfer to your business partner as per your shareholder’s agreement. If there’s no clear plan in place, those shares end up in your estate, to be distributed according to your will.

Enter the buy-and-sell agreement – your solution to these issues. This agreement is backed by life insurance policies on each partner’s life, ensuring enough cash to cover the purchase price. Simultaneously, the agreement establishes the obligation to sell the deceased partner’s shares and the obligation for the surviving partner to buy them.

Now, let’s talk about the risks:

Insufficient cash: The remaining owners might not have enough cash to buy the deceased partner’s business interests.
Uncertain fair price: Heirs might not be guaranteed a fair price for the business interests, potentially leading to a forced sale.
Ownership complications: The remaining owners might face unclear ownership, dealing with heirs or delays in estate settlement.
Business capital drain: Funding the purchase could drain the business’s capital, jeopardizing its continuity.

On the flip side, the benefits are significant:

Business continuity: The business keeps going without outside interference.
Smooth transition: Funds are available for a timely conclusion of the transaction.

For dependents or beneficiaries, the advantages are:

Inherited capital: They receive a capital amount instead of dealing with a business they may not know.
Financial security: The received capital can replace lost income and contribute to overall estate planning.

Now, let’s consider the importance of a shareholder’s agreement:

This agreement, entered into during the partners’ lifetimes, governs their relationship and outlines what happens to shares in the event of death or retirement. Without it, shares become part of the deceased partner’s estate.

And remember, getting the structure right is essential to qualifying for estate duty exemption. The Estate Duty Act provides exemptions if specific conditions are met.

In conclusion, a buy-and-sell agreement is vital for protecting interests and ensuring the intended transaction occurs. Without it, disputes can end in costly and time-consuming court battles, benefiting no one, especially not the deceased owner’s beneficiaries.

Welvaart Verwagtinge vir 2024

Mon, 18 Mar 2024 16:48:50 GMT

Agtergrond

Die toekoms is onbekend en daarom bestee internasionale beleggingshuise groot bedrae geld om te voorspel wat in die toekoms op beleggingsmarkte gaan gebeur – sonder veel sukses. Om persoonlike welvaart in ‘n onseker wêreld te skep verg ‘n plan asook persoonlike dissipline. Die volgende persoonlike plan word voorgestel:

Persoonlike Plan

Elke leser leef in unieke persoonlike finansiële omstandighede in ‘n wêreld vol risiko’s. Die volgende plan kan in samewerking met jou Bovest welvaartbestuurder geimplimenteer word om te help om risiko’s te bestuur en gevolglik jou persoonlike welvaart te vermeerder:

Stel ‘n persoonlike maandelikse begroting op asook ‘n lys van jou bates en laste.
Doen jou belasting beplanning deur gebruik te maak van die toegewings wat die Suid Afrikaanse Inkomste Diens bied om minder belasting te betaal.
Diversifiseer jou welvaart deur in verskillende bate-klasse en in verskillende lande te belê.
Benut saamgestelde groei om jou belegging oor ‘n aantal jare eksponensieel te laat groei. Dit beteken dat indien jy R 1 miljoen belê en jy kry10% jaarlikse groei, is jou totale belegging R1.1 miljoen. Volgende jaar gaan jy beleggingsgroei op R1.1 miljoen verkry!
Doen aftree beplanning en belê ten minste 15% van jou jaarlikse inkomste in pensioen produkte.
Stel jou testament op en beplan jou nalatenskap vir jou geliefdes.

Beleggingsomgewing

Algemene verkiesings word hierdie jaar gehou in verskillende demokrasië wat as beleggings bestemmings vir van ons kliënte dien. Dit is veral plaaslik sowel as in die VSA waar politieke emosies moontlik beleggingsprestasies kan beinvloed. Die oorloë in Ukraine en die Midde-Ooste skrik moontlike beleggers in finansiële markte af en daar word eerder beleggings in meer stabiele beleggings intrumente soos goud gemaak. Die feit dat beleggings besluite rasioneel en nooit emosioneel geneem moet word, gaan veral in hierdie lande toepaslik wees.

Rentekoerse en inflasie speel ‘n belangrike rol in enige beleggingsbesluit. Die hoë inflasie in gevestigde ekonomië gedurende 2022 het die betrokke lande genoop om hul rentekoerse te verhoog. Die gevolg was dat die pryse veral in aandele gedaal het. Hierdie reeks verhogings van rentekoerse het die inflasiekoerse van die betrokke ekonomië verlaag en op 1 November 2023 het die Federale Bank in die VSA besluit om nie meer hul rentekoerse verder te verhoog nie. Die gevolg was dat aandele se pryse wêreldwyd verhoog het.

Daar kan verwag word dat wanneer rentekoerse werklik verlaag, die tendens van ‘n styging in die pryse van aandele gedurende 2024 sal voortduur. Hierdie tendens sal afhanklik wees van die voortgesette daling van die inflasiekoerse in die betrokke lande.

Samevatting

Die opmerking wat een van Bovest se ervare kliënte teenoor ‘n buitestaander gemaak het toe sy gevra is of sy finansieel kragtig genoeg is om op ouderdom 55 met pensioen te gaan, was haar antwoord dat sy “kan” omdat sy ‘n aantal jaar ‘n klient van Bovest is. Hierdie persoonlike ervaring bevestig dat te midde van ‘n onbekende toekoms, ‘n goeie welvaartsplan en persoonlike dissipline sukses behaal.

Dr Riaan Botha FSA™ D.Phil

Photo by Teuku Fadhil on Unsplash

Our Team is Growing

Mon, 18 Mar 2024 16:40:25 GMT

At Bovest, it’s very important for us that when we appoint someone new, not only that they’re professional and diligent, but we ensure they also fit into the culture of our business. Our culture is mainly driven by one single purpose: To put our client’s interest first in everything we do.

We are delighted to announce that from the 1 st of February our team has grown by 2 as we welcome Wealth manager Francois le Clus and his broker assistant, Belinda Braak to the Bovest family .

At Bovest, it’s very important for us that when we appoint someone new, not only that they’re professional and diligent, but we ensure they also fit into the culture of our business. Our culture is mainly driven by one single purpose: To put our client’s interest first in everything we do .

It’s on this principle that Bovest was founded back in 2008 by our chairman Riaan Botha and it will continue to be the driving force behind our business.

Francois le Clus is a seasoned financial advisor with a passion for empowering individuals and families to achieve their financial goals. With a comprehensive background in investments, tax, debt and a commitment to personalized service, Francois has become a trusted partner for his clients on their financial journeys.

Professional Background:

With over 9 years of experience in the financial industry, first at Momentum and then Attooh, Francois has honed his expertise in wealth management, retirement planning, and investment strategies.

Francois earned his Bcom HR degree (Univ of Pretoria), Bcom HR Hons (Univ Pretoria) and Postgraduate Degree in Financial Planning (Univ of Free State) where he developed a solid foundation in financial principles and analytical skills. Committed to staying at the forefront of industry trends, he regularly participates in professional development opportunities and continuing education.

Client-Centric Approach:

Recognizing that each client’s financial situation is unique, Francois takes a holistic and client-centric approach to financial planning. By carefully listening to his clients’ goals, concerns, and aspirations, he tailors customized strategies to help them navigate the complexities of financial decision-making.

Areas of Expertise:

Investment Management: Francois provides strategic guidance on building and managing investment portfolios, taking into account risk tolerance, time horizon, and financial objectives.
Retirement Planning: Francois helps clients develop comprehensive strategies to achieve financial security during their post-career years.
Estate Planning: Understanding the importance of legacy planning, Francois collaborates with clients to create effective estate plans that align with their wishes and minimize tax implications.

Personal Philosophy:

Francois believes in fostering long-term relationships with his clients built on trust, transparency, and open communication. His goal is to alleviate the stress associated with financial decision-making, allowing clients to focus on what matters most to them. Francois also strives to educate clients in their understanding of debt and how to create long-term wealth.

Whether guiding clients through market fluctuations, helping them plan for retirement, or providing insights into tax-efficient strategies, Francois stands as a dedicated advocate for financial well-being, committed to helping clients achieve their financial dreams.

Geo Botha CFP® B.Com (Hons)

What do your Investments Cost?

Mon, 18 Mar 2024 16:17:53 GMT

Investment fees should not be difficult to understand and must at all times be transparent. Many years ago, this was not the case but in recent years the industry has standardized the terms and set out clear limits.

Annual fees set out as an EAC table (Effective Annual Cost) is relatively easy to access even for the investor by logging into their online portal. These fees will always be set out in the initial proposal and quotation before any investment is done and is a good reference point for reporting.

The total fees are shown as a percentage of the capital invested on an annual basis and includes VAT.

Here is an example of how that would look:

Investment Management: The impact of the investment management charge is based on the weighted average annual fee of the underlying assets
Advice: The impact of the advice charge is based on the annual fee as shown in the table
Administration: The impact of the administration charge is based on the annual administration fee charged by the platform, which is calculated on a sliding scale
Other: The impact of other charges is based on fees paid in respect of model portfolios or other discretionary managers

- How are these fees paid?

The fees will automatically be paid monthly from the capital to the parties involved by the investment platform. Some investors choose to pay the advice fee direct to the advisor firm. The advice fee will in this instance not be included in the table above.

- Do fees have an effect on growth?

Fees are an expense to the invested capital and growth should be reported on after fees. Lower fees mean higher effective growth rates.

Some advisors ask higher annual advice fees than others, but these fees are justified in the amount of hours and knowledge that goes into the planning and management of an investor’s portfolio.

A “value add” may include tax- and estate planning using the underlying structures of an investor’s portfolio. Providing feedback on financial goal setting based on investment horizons in annual review meetings may also be a way to justify advice fees.

Ruvan J Grobler RFP™ (PGDip Financial Planning)

Photo by StellrWeb on Unsplash

Wenke vir Suksesvolle Aftrede

Mon, 18 Mar 2024 16:10:44 GMT

Agtergrond

Weens die moderne gesondheidswetenskap leef afgetredenes langer as ooit in die geskiedenis van die mensdom. Hierdie verlengde tydperk skep talle geleenthede. Die vraag is watter wenke moet gevolg word om hierdie geleenthede suksesvol te benut.

Die volgende wenke kan help:

‘n Afgetrede persoon het ‘n leeftyd van ervaringe agter hulle. Tydens hulle lewens was daar tye van lag en ook tye van swaarkry. Hierdie persoonlike ervaringe kan aangewend word om die tyd as ’n afgetredene ten volle te geniet.
Elke afgetredene het unieke talente wat benut kan word om ‘n positiewe rol in die gemeenskap te speel.
Voorkom die “Aftree Siekte” . Programme kan gevolg word om gemaklik en sonderspanning af te tree.
Wees finansieel onafhanklik. Daar is ’n leeftyd van inkomste verdien en gepaardgaande aftree beplanning agter die rug en nou moet finansies ten beste aangewend word om jou aftrede te geniet. Dit is belangrik om jou finansiële bates deur ’n professionele persoon en finansiële instansie soos Bovest te laat bestuur. Dit sal die angs van die scenario van”dat my geld voor my dood sal opraak” te vermy.
Leef met redelike lewensverwagtinge. Indien jy met te hoë verwagtings leef en altyd streef na iets beter as wat jy tans ervaar, gaan jy onvergenoeg wees en deur mense vermy word.
Bestuur die risiko’s van aftrede. Ons as mense smag na voorspellings en wat ons van die toekoms kan verwag. Meer nog as afgetredenes. Dit is egter belangrik om gereed te maak vir verskillende gebeurtenisse in ons lewens en om die lewe te geniet. Indien die onvoorsiene gebeur soos ’n terugslag met jou gesondheid of die verlies van ’n geliefde moet daar gebeurlikheidsplanne in plek wees om te help met die slegte nuus.
Gee terug aan die gemeenskap en aan mense wat hulp nodig het. Hierdie teruggee aksie kan finansiële skenkings wees of om van jou kosbare tyd en kennis beskikbaar te stel aan jou medemens. Daar is die belangrike spreuke dat dit beter is om te gee as om te ontvang.
Die vestiging van jou nalatenskap kan ’n belangrike rol speel tydens aftrede.

Samevatting:

Jou aftrede is so ’n belangrikke fase in jou lewe dat Bovest wenke gee sowel as om byeenkomste gaan aanbied om jou gereed te maak vir ’n suksesvolle aftrede sowel as om jou bestaande aftrede ten volle te geniet.Dr Riaan Botha FSA™ D.Phil

Nvidia – The Magnificent 1

Thu, 01 Apr 2021 07:19:08 GMT

"Shares like Nvidia can form part of a well-diversified investment portfolio where market risk is managed."

The S&P reached an all-time high following Nvidia’s historic surge in market value. Nvidia reported a staggering 265% revenue growth in the fourth quarter, with projections of even stronger earnings this quarter due to increasing demand for its AI chips. The single-day market cap gain of $277 billion eclipsed Meta’s $196 billion gain earlier in the month.

At 27/02/2024 Nvidia is $793.20 per share, up 240% the past year. Will this trend stick forever? Certainly not. As we saw with Tesla (although vastly different) since January 2023 they are down 19.75%. I do still see value going forward in Nvidia, but there are many other that offer value. Don’t fall in love with a single share.

There will always be companies and funds that outperform their peers at a certain time. Although predictions and projections can be made by analysts, there is no crystal ball that can tell us when to buy and when to sell. There is always risk and a bit of luck involved.

No fund or institutional investor holds only one share, the risk is simply too high. A diversified portfolio consists of assets from different industries, sectors, and geographic areas, each with their own investment horizon. Shares like Nvidia can form part of a well-diversified investment portfolio where market risk is managed.

What do you need to take into account with your portfolio?

– Amount invested
– Investment horizon
– Investment goals
– Risk tolerance
– Liquidity
– Estate planning
– Tax planning

Using the above variables should give you a framework for the type of assets you can invest in to diversify your portfolio. Giving it building blocks to protect against short-term volatility, but also growth assets that increase your net-worth above inflation.

*This does not serve as financial advice.

Ruvan J Grobler RFP™

What Game are you playing?

Thu, 01 Apr 2021 07:19:08 GMT

I recently listened to a podcast by Morgan Housel which made me rethink the way I think about financial advice. I tend to think that everyone has the same goals in life, but this is a fundamental mistake on my part.

I recently listened to a podcast by Morgan Housel which made me rethink the way I think about financial advice. I tend to think that everyone has the same goals in life. I tend to think that everyone wants to make as much money as possible, accumulate as many assets as possible, and get out of debt as soon as possible, but this is a fundamental mistake on my part.

Everyone, including myself, has different goals. We get delight from different things in life. Everyone has a different outlook on life. Just because someone doesn’t want to pay off their debts as soon as possible doesn’t make them wrong; they just feel comfortable with debt. I tend to think that everyone wants to get out of debt as soon as possible because debt is a pet hate of mine.

Some people believe in Money market funds as long-term investments. Even though they may be in the wrong fund for the timeframe of their investments, they feel comfortable with this type of fund. Some people feel safe and comfortable in these portfolios, and they don’t care about making real long-term returns. They find joy in seeing their money providing consistent returns. They may leave money on the table in the future, but that’s not the point. The point is that they enjoy the growth and stability they see every day and the possibility of higher future growth doesn’t make them happy.

Think about crypto. Some people believe without a shadow of a doubt that these assets will grow substantially in the future and the financial system has failed so many times that it would be idiotic to be invested in “traditional” markets. For these enthusiasts, it’s riskier to be invested in these markets rather than alternative assets. For me, I don’t have enough courage to invest in crypto.

We all have different approaches to investing, debt, spending, happiness, etc. Just make sure you understand the game you’re playing and what makes you tick and do not play the game someone else is playing.

Listen to it HERE .

Francois Le Clus (PGDip Financial Planning)

Photo by Joshua Hoehne on Unsplash