Financial Planning Archives -

Letter from and reply to an anxious investor

Dear Gregg “Your pest client again! I was listening to an economist talking on the radio yesterday & he said we were not just in a recession but we are in a depression & it might take 10 years to come out of this. What if: What would it cost if I sold everything in …

Are Passives really that cheap?

I got really excited recently when I noted the addition of some of the CoreShares funds to the list of funds on one of the LISP platforms that we use… And then I started doing some quotes to see what the effect the addition the CoreSharesTop50 would have on the fees on the client’s portfolio. …

Cash guarantees?

We have come across many clients recently who are wanting to move their funds into the “bank” following the very poor returns of the past 5 years. Their rationale usually revolves around the fact that at least they would be guaranteed a return of ±7% per annum compared to the dismal returns from the market. …

There’s something insane about buying a R1.6m property that you can rent for less than R6000pm

I was recently approached by a client about whether or not I thought he should sell his rental property. Let’s take a look at the facts: Bought in 2001: R210k (a further ±R70k spent on renovations). Current value: ±R1.58m (he hopes) Current rental: R6000 pm (it’s a 27 m2 1 roomed apartment in Stellenbosch) Levies …

Marcus Jooste’s school-boy error

Much has been written and much will still be written about the Steinhoff saga but after listening to some of the testimony and reading the bit below…there is only one conclusion that can be made and that is this: Ethics aside, Marcus Jooste’s biggest mistake was failure to diversify. It’s a classic school-boy error of …

Dont do this at home!

ENT specialists will tell anyone who listens that the only thing that you should ever stick into your ear is your elbow (it’s impossible, just as it is impossible to lick your elbow). And yet a quick trip down the supermarket aisle or peak into just about any bathroom cabinet will show that there is …

Talk about a wolf in sheep’s clothing

I received another unsolicited email today from an operation called “savemoney.co.za” about a tax-free savings account. It’s just Old Mutual in disguise and despite claiming to offer the “best tax-free savings account in South Africa” a little digging shows that this is VERY far from the truth.They are, in fact, ripping off poor, unsuspecting and …

It’s time to do the Mickey Blue (again)

I recently watched someone using a leaf blower to clear their pavement. As I watched, it struck me what a pointless exercise it was and it crossed my mind that the leaf blower must be one of the most senseless machines yet invented.

It’s time that treasury stopped being short-sighted when it comes to the wealthy!

A few years ago, during the National Budget Speech, government put a cap of R350k pa on retirement contributions. It appears that no one at treasury has given this much thought

The great Tax Free Savings Account con!

Am I the only one who dislikes Tax Free Savings Accounts (TFSA) and all the hype that goes with them? Let’s take a step back before getting all excited about TFSA’s. They were introduced (by Government) to encourage non-savers to save and unfortunately,

The Financial Coach