Financial tips for the silly season.
Yvonne • December 2, 2024
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.
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/
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)
