Pain vs Pleasure
Francois Le Clus • August 1, 2025
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 31st of January 2020, the world started panicking because the corona virus started spreading like wildfire. On the 10th 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.
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. ‘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. 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.
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)
