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Is investing offshore just for people who've given up on South Africa? I get some version of this question a lot, and the honest answer is no. It's really just about not keeping all your eggs in one rand-denominated basket. And it got a lot more relevant this year, because in April 2026 the Reserve Bank doubled the Single Discretionary Allowance from R1 million to R2 million per person, per year. That's a meaningful jump, and it's worth understanding properly before you use it. Here's how the allowance system actually works. Every South African resident over 18 gets a Single Discretionary Allowance of R2 million a year. No SARS approval, no tax clearance, you just instruct your bank and off it goes, for travel, gifts, or offshore investing. On top of that sits the Foreign Investment Allowance, up to another R10 million a year, but that one needs a SARS Approval for International Transfer first, which comes off your tax compliance status on eFiling. Between the two, that's R12 million per person, per year, without needing special Reserve Bank sign-off. A couple, or a family with adult kids, can add that up quickly. Worth knowing too, this is different from the rand-denominated offshore funds most people already hold through their local platforms. Those use asset swap or feeder structures, and your allowance never actually leaves the country. Direct offshore investing means the money physically converts to dollars, pounds or euros and sits in an account in your own name, offshore. Different animal, different mechanics. Side note: if you've got a retirement annuity, you already have some offshore exposure, Regulation 28 lets retirement funds hold up to 45% offshore. That's real diversification, but it's locked inside a retirement structure with its own rules on access and estate treatment. Using your personal allowance is a completely separate lever, money you actually hold in your own name, offshore, that you can access, restructure or leave to whoever you want without waiting for retirement age. Who actually uses this in practice? Families with kids studying or working abroad. People planning to retire partly offshore, or just wanting a foreign currency buffer for when they travel. Business owners who've built most of their wealth locally and want a real counterweight sitting outside the country. It's rarely about chasing better returns, it's about not having every asset you own exposed to the same risks at the same time. So why bother with the direct route? Two reasons come up in almost every conversation I have about this: currency, and geography. On currency, if your salary is in rand, your house is in rand and your whole portfolio is in rand, your entire financial life rises and falls with one currency. Holding some of your wealth in hard currency doesn't mean you think the rand is doomed, it just means you're not betting your whole future on one outcome either way. On geography, the JSE makes up less than 1% of total global stock market value. Some of the biggest growth stories in the world right now, in tech, in healthcare, aren't listed here at all. Investing offshore isn't a vote against South Africa, it's just access to the other 99%. Now here's a case worth knowing about, because it shows how badly this can go if someone tries to get clever with the rules instead of just following them. In Singh v South African Reserve Bank, decided by the Pretoria High Court in 2023, an attorney and businessman moved R80 million between local accounts, with about R20 million of it headed for a UK bank account. The problem wasn't the amount, it was how it moved, in R1 million chunks, each one apparently using someone else's Single Discretionary Allowance instead of his own. His bank picked it up and reported it to the Reserve Bank, who placed a blocking order on the remaining R40 million sitting in his account back home. He went to court arguing his bank had approved the transfers, so it must have been fine. The court didn't agree. A bank can't lawfully approve something that breaches exchange control in the first place, and the blocking order stood. If you genuinely need to move more than R2 million a year, that's exactly what the Foreign Investment Allowance is for. It just takes proper paperwork, not creativity.  A few practical things that catch people out: Your allowance resets every calendar year, it doesn't carry over if you don't use it. A clean SARS record matters. Outstanding returns or disputes will delay your approval, and it can take up to three weeks even when everything's in order. Financial institutions want proof of where the money actually came from, especially as the amount grows. Moving a big amount in one go means you're stuck with whatever the exchange rate happens to be that day, that's a separate risk from the compliance side, and worth thinking through. One more thing, since estate planning is where I spend most of my time. Assets held directly offshore, in your own name, usually fall under the estate administration rules of wherever they're held, not just South Africa's. That can mean your executor needs a foreign grant of probate before anything can be dealt with, on top of the local process. It doesn't mean don't do it. It just means the structure deserves as much thought as the decision to invest offshore in the first place. This is general information, not advice tailored to your situation. Ruvan J Grobler FSA® PGDip (Financial planning)

A living annuity is a post-retirement income product available to South Africans who've exited a retirement fund — typically a pension, provident, preservation, or retirement annuity fund. Instead of taking the full benefit as a cash lump sum (subject to the usual tax-free and taxable limits), a retiring member can use some or all of the remaining capital to buy a living annuity from a registered long-term insurer. A traditional life annuity pays a guaranteed income for life in exchange for handing over the capital permanently. A living annuity works differently — more like a structured drawdown account. The contract sits with the insurer, not a fund, so once the policy is in place the member is no longer part of a retirement fund at all; the relationship becomes a contractual one between annuitant and insurer. The underlying investments also belong to the insurer rather than the annuitant, even though the annuitant chooses how the money is invested, usually from a range of unit trusts or similar portfolios on offer. Income is flexible, within limits — annuitants must draw between 2.5% and 17.5% of the remaining capital each year, reviewable annually. That flexibility is useful, but it cuts both ways: there's no pooling of longevity risk the way there is with a life annuity, so drawdowns that are too high, poor investment returns, or simply living longer than expected can deplete the capital. Whatever's left on the annuitant's death goes to the nominated beneficiaries on the policy. It doesn't form part of the deceased estate, and it isn't divided under intestate succession unless no beneficiary was nominated. It's this combination — contractual rather than fund-based, insurer-owned assets, flexible but unguaranteed income — that creates particular complications when a marriage ends in divorce. Living annuities vs "pension interest" It's worth separating a living annuity from "pension interest" as defined in the Pension Funds Act 24 of 1956. Since 1 September 2024, pension interest has meant a member's individual account or minimum individual reserve, calculated under the fund's own rules as at the date of the divorce order — this replaced the older definition that used to sit in the Divorce Act 70 of 1979. Timing is the key issue. Pension interest only exists while someone remains a member of a retirement fund. Once they retire and use the benefit to buy a living annuity, fund membership ends, and what they're left holding is a contractual right to annuity income — not a fund interest. A divorce order simply can't divide or assign a living annuity to a non-member spouse the way it can an active retirement fund benefit. What the Courts Have Said The Supreme Court of Appeal has dealt with this directly, in ST v CT 2018 (5) SA 479 (SCA) and again in Montanari v Montanari [2020] ZASCA 48. Both confirm that a living annuity is fundamentally contractual: the insurer owns the underlying assets, and the annuitant's entitlement is limited to drawing income within the permitted range, with anything left over going to nominated beneficiaries on death. That means a living annuity doesn't form part of the annuitant's estate for accrual purposes the way a share portfolio or property would, and because it isn't pension interest, it can't be divided through a divorce order either. Montanari did add a useful nuance, though: while the capital itself stays out of reach, the right to future annuity income can still count as an asset for accrual purposes. So the annuity can't be split, but its existence — and the income stream it represents — can still shape the overall settlement. That income is also relevant when maintenance is being worked out, which is reason enough to factor it into broader divorce planning. Why Valuation is Tricky The legal principles are reasonably settled at this point, but putting a number on the right to future annuity income is a different problem altogether — the courts haven't prescribed a methodology for it. The value depends on drawdown choices, investment performance, life expectancy, and inflation, none of which are fixed. Different actuaries working off the same annuity can land on meaningfully different figures, which makes negotiations harder and can leave clients with mismatched expectations going into a settlement. Conclusion The annuity itself can't be split or transferred, full stop — this is probably the most common misconception clients arrive with. That doesn't make it irrelevant, though: the right to future income can feed into the accrual calculation and into maintenance discussions. Valuation itself sits outside the scope of financial advice, so where a number is genuinely needed, referral to an independent actuary or other suitably qualified expert must be done. This article is for general informational purposes and does not constitute legal, financial, or actuarial advice. Ruvan J Grobler RFP™ (PGDip Financial Planning)

You can build significant wealth and still leave your family with a mess. Not because you didn’t plan—but because your cash wasn’t structured correctly. Too much liquidity in the wrong place, fragmented accounts, or misaligned ownership can quietly undermine even the most carefully drafted estate plan. Without intention, even a well-built estate can become complicated, delayed, or unnecessarily taxed. Estate planning isn’t just about documents and wills. It’s about how your money actually flows—and whether that flow supports or disrupts the legacy you intend to leave. Where do Money Market/Fixed Deposits/Savings Accounts fit into your portfolio? Financial Planning Cashflow These short-term conservatively positioned assets, just like all conventional asset classes, have a specific place in financial planning. It can be aligned with short-term investment goals where liquidity is key and can also form part of emergency savings. It’s important to note that interest earnings are taxed as income and can create unexpected tax liabilities. Risk Aversion Not all investors feel the same about risk, and that’s ok. Some might argue the price of holding cash in the long-term, but the investor has peace of mind that there will never be any surprises when opening investment statements, although it may come at the price of inflation beating growth over the long term. Implications on death by not holding the cash investment in a structure: Tax: The capital will form part of the dutiable estate for purposes of calculating the estate duty payable to SARS. 20% levied on dutiable estate between R3.5 million and R30 million, 25% levied on dutiable estate exceeding R30 million. Executor’s fees: The capital will form part of the calculation of executor’s fees charged by the executor of the estate. 4% (Incl. VAT) is the general fee charged by executors. Liquidity: In normal circumstances, the capital will only be available to beneficiaries once the Master of the High Court has accepted the L&D account and there is sufficient liquidity to make distributions. How do we solve this? It’s important to make sure that if you hold cash investments that it not only follows your financial planning goals, but the structure is considered too. Wrapping the assets in a structure solves two of the above issues, no executor’s fees can be charged if a cash investment moves directly from the deceased to the beneficiary via a nomination, and this process also provides liquidity to beneficiaries significantly faster than if it formed part of the estate for distribution purposes. Some structures may have liquidity constraints before death making it important to consider multiple structures to make sure your financial planning goals can be funded. Another major benefit of a wrapped structure is the deferral of tax liability as the structure will be taxed and not the individual. This income tax liability is taxed at a flat 30% and paid to SARS by the product provider. It may also be a good idea to look at who actually owns the cash investment. Moving it to your business or trust can also come with positive estate planning fundamentals. Reach out to me at ruvan@bovest.co.za to look at estate planning friendly structures for your cash investments. Ruvan J Grobler RFP™ (PGDip Financial Planning)

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)

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.

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)

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 Register at webinars.doceohealth.co.za Ruvan J Grobler RFP™ (PGDip Financial Planning) 

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)

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)