No. 248 – Savvy divorce planning starts with seeing whole financial picture
Question I am getting divorced. Everyone talks about the house, the pension and maintenance, but I do not even know where to begin. From a financial planning perspective, what should a woman be looking at before she signs anything?Answer Divorce is a major life event...
No. 247 – Balancing care, finances and dignity for a parent with dementia
Question My mother is a widow and has been diagnosed with early-onset dementia. She owns several rental properties that provide her with income. She now needs to move into care. How do we manage this situation?Answer Few situations are as emotionally complex for a...
No. 246 – The case for not making hasty decisions in times of uncertainty
Question I am really worried about what is happening in Iran. Should I move my investments into gold or the money market until things settle down?Answer The current war in the Middle East is a cause for concern, and our natural instinct is to try to protect our...
No. 245 – Think twice before establishing a trust to fund future education
Question I’d like to set up a trust for my five-year-old daughter’s education. Is that the right move?Answer A trust can be an excellent vehicle for providing for your daughter’s education, but iIt can also be unnecessarily expensive and complex. The real issue is not...
No. 244 – How modern endowment policies can make tax and estate sense
Question My financial adviser recommended that I invest in an endowment. Is this advisable? I’ve heard bad things about it.Answer For many South Africans, endowments still carry the memory of expensive life policies sold as “investments” with glossy brochures, large...
No. 243 – The right questions you should be asking about a living annuity
Question I will be retiring shortly and am looking at buying a living annuity. I was told that the main item to look at would be costs. The plan that I am looking at has an admin fee of 0.35% and an investment fee of 0.4%. Is this good?Answer An admin fee of 0.35%...
No. 242 – How time, consistency and simplicity grow retirement savings
Question I started my first job after graduating last year. The company offers group risk cover but no retirement fund. How much should I invest each month and what products should I use?Answer If your company offers group risk benefits, you likely have some or all...
No. 241 – Ironing out the problems of leaving a home for future generations
Question How can I leave my home to my children and grandchildren without them selling it once I've passed away?Answer Many people have a family home or holiday home they would like to keep in the family and pass down from generation to generation. It is a noble idea....
No. 240 – Weighing up the pros and cons of RAs and tax-free investments
Question I pay tax at the 45% marginal rate and want to invest R3 000 a month for the next 10 years. Should I use a retirement annuity or a tax-free investment for my savings? I do not own any tax free or retirement investments.Answer Both tax-free investments and...
No. 239 – Group RA versus cash: which one is the smarter financial choice?
Question I am from the UK and have been working in South Africa for a couple of years. I am a South African taxpayer and intend returning to the UK in about five years’ time. My employer has given me the option of either: Contributing R350,000 per year to a group...
No. 238 – Considering offshore investment amid rand and JSE performance
Question The rand has improved against the US dollar over the past year. Is this a good time to move money offshore?Answer This is a really relevant question. The Rand / Dollar exchange rate is currently around R16.50 compared with a rate of 18.50 a year ago. ...
No. 237 – A solid financial plan for 2026 is to review, update and simplify
Question I want to get my finances properly sorted in 2026. What would you recommend I do to ensure that I will be in a better financial position at the end of next year?Answer If you want 2026 to be the year your finances genuinely improve, you should do the...
No. 236 – Smart moves to make the most of your tax-free investment
Question I have a tax-free investment at the bank, but the returns seem lower than what my friends are getting from their tax-free investments at an investment company. Can I move my investment or take out another tax-free investment elsewhere?Answer Tax-free...
No. 235 – Should you cash in a preservation fund to clear your home loan?
Question I have a preservation fund worth R1.3 million. The growth in that fund has not been particularly good (around 9% a year over the past 5 years). I'm thinking of cashing it in and using the proceeds to clear my home loan of R1million where I am paying...
No. 234 – How to use living annuities and RAs as wealth transfer tools
Question I have R15m saved in a retirement annuity. As I have sufficient income from other sources, I will not need these funds to provide me with the pension. I would like to leave the full R15m to my son who is about to start university. How do I do this and how...
No. 233 – Practical ways to teach children good long-term money habits
Question How do I teach my children good financial habits?Answer Managing money is one of the most important lessons we can teach our children. Here are a couple of ideas that may help your children learn good financial habits Turn pocket money into a training...
No. 232 – Investment options for you that generate steady after-tax income
Question I am a 74 year old widow and have recently sold a property for R4m. How should I invest the proceeds to generate the best after tax income?Answer There are a couple of options open to you and each has its advantages and disadvantages. I will run through two...
No. 231 – Make finances simple for your surviving spouse
Question I have managed the family finances without a financial adviser and have done well. I am concerned that when I pass away, my spouse — who has no interest in money — will not know what to do. What can I do now? I am 70.Answer Many households have one partner...
No. 230 – Investment account only for dental expenses will keep you smiling
Question My friend’s son has had braces fitted to his teeth. I was shocked to hear what it cost and that it was not covered by their medical aid. What do I do now to ensure that if my son needs braces, I will be able to pay for them?Answer Years ago, many employees...
No. 229 – Avoid leaving your children with frail-care costs by planning early
Question I booked my mother into a frail-care facility recently which costs R30 000 a month. Unfortunately, her pension is not large enough and I’ve had to step in and subsidise the cost. What can I do now to prevent my children from having to face a similar...
No. 228 – Plan for the everyday while estate is wound up
Question We are married in community of property and are worried that if one of us dies, everything will be frozen for months or maybe years while the estate is wound up. I don’t want the survivor begging the Master of the High Court for an allowance just to buy...
No. 227 – Ensuring property transfers are fair for all heirs
Question I am 80 years old and have a daughter who lives in my rental property. She will inherit it when I pass away. She would like to take over the ownership now. How do I do this in such a way that I won’t trigger too many taxes and am fair to my other...
No. 226 – Money priorities every graduate should know
Question I will be finishing university next month and know nothing about financial planning. What should I prioritise?Answer Start with the only asset you already own that can pay for everything else — your future income. South Africa’s social safety net is...
No. 225 – Restructure your assets sensibly to preserve the money for heirs
Question I’m a widow with a terminal diagnosis. I want my two children, both in their 50s, to inherit with minimum cost and delay. I have R5 million in bank accounts, R7 million in unit trusts, R5 million in RSA Retail Savings Bonds, and a R5 million home. What should...
No. 224 – Untangle financial choices before tying the knot
Question My partner and I are getting married in December and need to decide whether we are doing it in community of property or with an ante-nuptial contract. Then there is something called with or without accrual. How do we decide?Answer There are three ways to...
No. 223 – Time plus compound interest equals big returns
Question I’m a 74-year-old ‘financially illiterate’ gran learning so much from your column. I have a newborn grandson and would like to start some sort of ‘fund’ for his future. What would you advise?Answer The single most powerful advantage a newborn has over the...
No. 222 – Structures and strategies to help create lasting family wealth
Question I have built up a substantial set of assets and have no debt. How do I structure my finances to create long-term wealth for my children and grandchildren?Answer Getting the right structures in place can make a significant difference. You want to build family...
No. 221 – Buy-and-sell structures are crucial for businesses
Question I run a business with two partners. Things are fine now, but what if one of us dies? A friend passed away last year, and it ended up in a messy legal fight between his family and the business he founded. How do we protect the business and make sure our...
No. 220 – How to strike the right balance between caution and growth
Question With inflation now around 3%, the Reserve Bank cut rates by 0.25%. That’s great for borrowers, but I’m a 68-year-old pensioner living off the interest from a 32-day call account. I know it’s not ideal — no growth and I’m just spending the interest. I have R5...
No. 219 – Using extra money smartly can maximise your retirement funds
Question My spouse has no pension or retirement fund. He has just sold a property and now has a few million in the bank. Can we put that into my pension or retirement annuity to boost our retirement income? I’m retiring in three years.Answer Your spouse cannot invest...
No. 218 – Steps to take if your spouse is showing signs of mental decline
Question My husband is showing signs of mental confusion, and I am concerned that he may be getting dementia. What do I need to do in order to manage his finances?Answer With people living longer, it’s increasingly common for a spouse to experience a cognitive...
No. 217 – Expats, beware these property ownership pitfalls
Question We are South Africans working abroad with all our savings in our offshore bank. As we sold our property when we left SA and no longer own a house, we are thinking of buying a property in Europe and using it as an Airbnb. This should provide us with a better...
No. 216 – Rethinking life insurance cover at retirement
Question My wife and I are approaching retirement. We are in good health, have no debt, and have built up a reasonable nest egg. However, we are currently paying R15,000 per month for life and dread disease cover — and the premiums are increasing a lot each year. We...
No. 215 – A smart way to cut estate duty without triggering unnecessary tax
Question My father is a widower and has just been diagnosed with cancer. The prognosis is not good and I’m assisting him in tidying up his affairs to make the inheritance process easier. I am his only child. His assets consist of a house worth R4 million and various...
No. 214 – Retrenchment is taxing, but plan well and you can avoid disaster
Question I'm 54 years old and have just been retrenched from the company I joined straight out of university. I had planned to work for another 11 years so this has really messed up my plans. I am concerned about my financial future. Can you help?Answer Being...
No. 213 – Reconsidering the worth of rental properties as retirement nears
Question We will be retiring at the end of the year and have several investment properties in Cape Town that we rent out. We want to use the income from these properties to supplement our pension. I recently took a close look at the rental income we were getting and...
No. 212 – Top 10 tips for managing money once full-time work is a thing of the past
Question One in ten South Africans will live to age 100 so if you retire at 65, your savings may need to support you for another 35 years. Over the past 35 years you lived through times of high inflation, low inflation, recessions, stock market booms, and political...
No. 211 – Turn extra cash into long-term financial security
Question My husband and I have finally reached the stage in life where we have some money left over at the end of each month. I would like to invest this wisely and need some guidance. We are both in our mid 40s and earn decent salaries.Answer I would strongly...
No. 210 – Planning ahead for a smooth financial handover
Question My wife and I are in our 80s and still in relatively good health. I currently manage all our financial affairs, but I’m becoming increasingly concerned about what would happen should I fall ill or pass away. What steps should we take now to ensure that our...
No. 209 – Ensure less estate duties with all-round benefits
Question I am 82 years old and have R20 million invested in unit trusts. My son will inherit everything, but I am worried about him investing a lump sum like this as he has a gambling problem. I recently did an estate planning exercise and was horrified to see that...
No. 208 – How to work out your retirement savings number
Question My friends tell me that I need R30 million in order to retire. My savings are nowhere near that. Am I in trouble?Answer The amount of money that you need in order to retire will depend on how much you need to live on when you have retired. I do a lot...
No. 207 – Protect your finances with critical illness cover
Question I've recently joined a company where there are no employee benefits, so we need to make our own arrangements. At my old company, I had critical illness cover of one times my annual salary. Is this something that I should get privately? None of my friends...
No. 206 – Whether to keep or cancel a life insurance policy
Question I took out a life insurance policy many years ago which will pay out about R20m. I do not need the life cover anymore as the loan it needed to cover has been settled. The current premiums are about R35k a month and the premiums increase by 6% a year. I am...
No. 205 – Before you hedge, make sure you have the edge
Question My son says that we should be investing in hedge funds as it will reduce the amount of risk in our investment portfolio. I'm a bit worried about this as I have seen stories where people have lost all their money in scams like Bernie Madoff’s hedge fund. Am I...
No. 204 – How to provide fast access to funds after death
Question I want to invest some money that can do the following: I want my spouse to have quick access to the funds should I pass away - I do not want her to wait till the estate has been finalised I do not want the investment to trigger additional interest that is...
No. 203 – Options to make a higher salary and a loss of benefits work for you
Question I am moving to a new company where the salary will be higher but there are no company benefits like a pension fund or medical aid. I am not sure what I should do with my current pension fund and replacing my current benefits.Answer There are a couple of...
No. 202 – Life insurance and children: how to do the maths
Question We will be having our first baby shortly and I think it is about time that I took out some life insurance. How do I work out how much life insurance I should get?Answer The short answer is that you should take out enough cover to ensure that your family...
No. 201 – Inheritance should last and be inflation-proof
Question My mother (75) inherited R5-million after the death of my father. The money is currently in the bank and she's using this to fund her day to day living expenses which come to around R20 000 a month. I am concerned that this may not be the best way of...
No. 200 – Choose wisely and set yourself up for the future
Question My mother recently passed away and I will be inheriting a living annuity that pays her an income of R20 000 a month and is worth R5m. I have been given the option of taking the R5 million as a lump sum or to receive a monthly income. I understand there are...
No. 199 – Timing the markets versus time in the market
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer What you proposing is quite a...
No. 198 – Securing a steady income after early retirement
Question Our company is closing down, and I've been put on early retirement. I am 60 years old and have R5m in my provident fund and R3m in savings which includes the severance package. I am concerned that this will not be enough as I was planning on saving for five...
No. 197 – Be the master of estate planning and avoid delays
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Since the time of Covid,...
No. 196 – Don’t have all your eggs in one overseas basket
Question The new land expropriation law has been giving me sleepless nights. A friend of mine suggested that I should do as he has done and move all my investments into an overseas bank. Should I do so?Answer This is a very big decision, and you really need to think...
No. 195 – Essential questions to ask when you see your financial adviser
Question I left university ten years ago and have been managing my own investments. After reading your column, I am concerned that this may not have been the wisest move and that my finances may be incorrectly structured which could cause problems in the future. I...
No. 194 – How retirees can benefit from investing in retirement annuities
Question I have a question about contributing to RAs to save tax when one is my age, that being almost 80. As we took the full lump sum when we retired, any one-third withdrawal on new RA contributions will now attract a tax rate of 36%, not a great saving. The...
No. 193 – Ensuring a tax-savvy retirement income stream
Question I am 72 and will shortly be retiring. I will receive an income of R10k a month which is sufficient for my living costs. My wife is 9 years younger than me and will work for 3 more years to 65. She will then receive a modest pension, so a bit of help for...
No. 192 – Ensuring income security amid health concerns
Question My husband is 82 and is not in the best of health. We are concerned that he may be showing early signs of dementia and we will be seeing a specialist next month. We currently live off the proceeds of his investments which consist of local and offshore unit...
No. 191 – To beat inflation, retirees need a mix of safe and volatile portfolios
Question I recently turned 65 and besides my pension, I have R3m invested in various funds, some of which are overseas. When does one start moving money into totally safe funds like fixed deposits and money market?Answer There are a couple of factors that you need to...
No. 190 – Finance basics: budget, emergency fund and debt
Question I would like to get my finances in order this year. What is the best way of going about it?Answer I recommend following a systematic approach towards managing your finances and would suggest that you do the following. Draw up a budget The first thing...
No. 189 – Retirement and risk cover options for employees
Question I have a business with 20 employees. I would like to put in some kind of retirement fund for them. Is this financially feasible for our sized company? If so, what would a typical arrangement look like?Answer Saving for retirement is often neglected by...
No. 188 – Finding the right annuity for you takes thought
Question I recently heard someone talking about a with profit annuity. I only know about living annuities and guaranteed life annuities. How does a with-profit annuity fit into the picture?Answer A with-profit annuity is a special type of guaranteed life annuity...
No. 187 – What to do if you get retrenched
Question I have just been retrenched and I'm feeling quite overwhelmed by all the decisions that I need to make. Do you have any suggestions on what the big pitfalls are and how to avoid them.Answer Getting retrenched is incredibly stressful. Not only do you have to...
No. 186 – Making the most of a medical aid on a budget
Question I would like to join a medical aid after not being on one for the past two years. I’m 39 with a young child and can only pay around R3 500 a month. I’m looking for the following: comprehensive hospital cover sufficient day-to-day savings GP visits dental...
No. 185 – To quell chaos, your business needs its own will
Question I recently heard someone talking about a will for a business. How does this work?Answer A will for a business documents what should happen to your interest in a business should you pass away. This is something that anyone who owns or co-owns a business...
No. 184 – Products that can give employees peace of mind
Question A colleague has recently been diagnosed with cancer. He is going to be unable to work properly for at least three months. The company will pay him his basic salary while he is off. But, as the bulk of his income comes in the form of commission, which is...
No. 183 – Measures to take to ensure that your offshore assets are protected
Question A friend’s husband passed away earlier this year, and the executor says it will take at least three years for his estate to be wound up because he owns shares in America and the UK. This does seem rather long. We also have investments in both the USA and UK....
No. 120 – The new two pot retirement fund
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer The short answer to your...
No. 121 – Why you should have separate offshore wills
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer You can certainly get by with...
No. 122 – How utilising a living annuity can maximise the financial health of your heirs
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Your approach with regard to...
No. 123 – Why cohabiting life partners must get the right will in place
Question My life partner of many years passed away last week. We never got around to drawing up a will. What happens now?Answer If someone passes away in South Africa and does not have a will, the rules of intestate succession come to play where the deceased assets...
No. 124 – Discussing the implications of dementia on your finances
Question I am concerned that my mother is showing early signs of dementia. She has several rental properties that provide her with the bulk of her income and these need to be actively managed. Should I go and get a power of attorney so that I can look after her...
No. 125 – Let’s talk estate duty: how and where to save
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I would need more information...
No. 126 – Exploring property investment and alternative income streams post-retirement
Question I will be retiring soon and have an additional R2,000,000 to invest. A friend suggested that I buy a rental property with this money as it will give me a monthly income as well as capital appreciation. Should I do this?Answer I cannot give you a categorical...
No. 127 – Ensuring financial health for your spouse should you pass away
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer There are a number of...
No. 128 – Using your RA as a vehicle to pay for your grandchild’s education
Question I've been on pension for 10 years during which time I have consistently contributed 27.5% of my income to an existing retirement annuity. This has now grown to a substantial amount. I will not need this money as the income from my company pension and other...
No. 129 – How to set yourself up for retirement, even if you start a bit late
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Here is a step by step way to...
No. 130 – Review your finances regularly, but be wary of ill intentions
Question My financial advisor rebrokes my life cover every two years. A friend of mine says that this does not seem right and that he’s probably doing something dodgy. Should I be worried?Answer The fact that your financial advisor rebrokes your cover every two years...
No. 131 – Addressing the financial implication of retrenchment
Question I was recently retrenched and have just received a communication from the company pension fund which says that they will allow me to preserve my retirement funds with them. Should I do so?Answer There are pros and cons to doing this. On the positive side, it...
No. 132 – Trying to time the markets with your investments is not optimal
Question I have a fixed deposit that has just matured and I want to reinvest it. I don't know where I should invest the money as I am very worried about what is going to happen in the next elections. What would you recommend?Answer It is difficult to make a call on...
No. 133 – Making sure the ship stays afloat after you’re gone
Question I am concerned that my family will have cash flow problems should I pass away as I heard that it is taking a long time to get an executor appointed. Is it possible to have a bank deposit where a beneficiary can be named?Answer A bit of planning ahead of time...
No. 134 – Recalibrating your finances when going through a divorce
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Divorce is a time of massive...
No. 135 – Being able to provide for your children should you and your partner pass away
Question We have just had our first child and want to update our will. Are there any special issues should we look out for?Answer The first thing you should consider is what would happen to your child should both of you pass away at the same time? If you do not...
No. 136 – Familiarise yourself with the tax burden on investment returns
Question I have R4m to invest to provide an additional income to meet my monthly obligations. I am working and paying 36% in income tax. Where can I invest this money and draw an income and not have too much of it going to SARS?Answer It is important that you always...
No. 137 – Spreading your wealth across various asset classes
Question A lot of my friends have been talking about a potential financial crash in South Africa and that we should move all our assets offshore. I am scared that we may end up with a situation where all our assets become worthless and that we have to start again....
No. 138 – Helping you choose the right annuities to fit your needs
Question I will be retiring at the end of the year and need to decide on what type of annuity I take. Here are the key details: I have around R4 million available after I take my lump sum. My wife has no savings so my retirement fund must support her for the rest of...
No. 139 – Beware possibility of exhausting the funds from a living annuity
Question I am 81 years old and have a living annuity worth R2.1 million from which I am currently drawing a pension of 15%. I have just received a notice from the company that pays the annuity indicating that my income for the coming year will be quite a bit less...
No. 140 – Situs tax: a potential thorn in the side if you’re not careful
Question My financial advisor has told me that I could be liable for situs tax on my offshore investments. I have never heard of this before. Is there such a thing? Answer As we increasingly adopt a worldwide approach towards investing and managing our finances, we...
No. 141 – Finding the sweet spot when choosing a medical aid
Question I received an email from my medical aid instructing me to choose the benefit option I want for the new year. I have no idea what I should look out for. Do I just choose the most expensive one just to be safe?Answer Going for the most expensive option could...
No. 142 – Planning to ease finances for your loved ones upon your death
Question I recently watched a television program about how long it is taking the master’s office to finalize estates. I would like to restructure my affairs so that it will be easy for my wife to inherit should I pass away. We are currently in our late 70s. I have...
No. 143 – Getting to grips with life insurance premiums
Question I recently applied for some life insurance and received a quotation with three different premiums included. My broker suggested I take the highest premium (obviously), while I preferred the lowest one. The difference between these premiums was something...
No. 144 – Being savvy when choosing portfolios can improve your pension
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I often find that retired...
No. 145 – Considering the tax and risk implications of a retirement plan
Question My wife and I are now nearly 80 years old. We have just over R6 000 000 invested in Bonds with 5-year terms. We have a combined monthly income from those investments of just less than R60 000 per month and we are generally able to save around R40 000.00 per...
No. 146 – Thinking carefully about retirement products
Question Many companies are currently promoting retirement annuities. I understand that there are tax benefits to be had from this product however I have also heard some horror stories about how badly they have performed as investments. Are they worth...
No. 147 – Ensuring your special needs child is taken care of after you die
Question I have a special needs child who needs permanent care. I am concerned about what will happen to him when my wife and I pass away. What should we do now to ensure that he has sufficient funds to live on when we are no longer around?Answer I have helped...
No. 148 – How to pay less tax on your retirement income
Question I recently read an article of yours where you discussed the importance of managing the sources of your retirement income to reduce the tax that you pay. I have R9m in retirement savings and a similar amount in an investment account. How should I go about...
No. 149 – Making the most out of your tax-free investment
Question Are tax free investments worthwhile?Answer I do a lot of financial planning for people approaching retirement who have investments that they made many years ago. When they want to withdraw the proceeds of these investments, they are often shocked by the...
No. 150 – Pension considerations for retiring teachers
Question I am a school teacher and will be retiring next year after 40 years of service. One of my colleagues mentioned that the government is planning on taking part of our pension fund and using it to bail out Eskom. Should I resign now before they get a chance to...
No. 151 – How to get a better after tax income
Question I am 68 years old and live on the proceeds of an R8 million divorce settlement. This is invested in a number of bank deposits from which I currently receive around 8.5% in interest each year which is more than enough to meet my monthly budget of R40 000 a...
No. 152 – Understanding death benefit payouts and their tax implications
Question My wife recently died and our daughter will be receiving a death benefit payout from her company provident fund. (This is in addition to the group life benefit she had.) We were told that this benefit will be taxable and that we have the option of taking it...
No. 153 – Beware financial advice that does not add value
Question I am 28 years old and met with an insurance broker who suggested that I make a regular monthly investment. He gave me a quote on an investment that targets a return of inflation plus 2.5%. When I read through the document, I noticed that it has the following...
No. 154 – Choosing between two different annuity options
Question I am a 70-year-old pensioner and derive my income from a living annuity (from which I draw 2.5% each year) as well as drawdowns from my investment portfolio. I am thinking about converting my living annuity into a guaranteed life annuity, as I hear that the...
No. 155 – Making your retirement investments work for you
Question I am concerned about the safety and security of our investments in South Africa. We do not intend emigrating but would like to ensure that we protect our assets.Answer Your problem is not unique. There are many retired people who experience this after being...
No. 156 – How to reduce the risk of having all your investments in South Africa
Question I am concerned about the safety and security of our investments in South Africa. We do not intend emigrating but would like to ensure that we protect our assets.Answer South Africa is a developing country and faces many of the challenges that developing...
No. 157 – A late starter’s guide to retirement savings
Question My father is in his 50s with no retirement savings whatsoever. He wants to retire in 10 years time. I know that he has left it a bit late and that he will probably not have a decent pension. What is the best vehicle for him to use in order to make up some of...
No. 158 – Getting more bang for your buck with your retirement monies
Question I read with interest your recent article in the DM regarding retirement options. I retired 3 years ago and have the following retirement income sources: Invested Amount Monthly income Guaranteed Life annuity R1 500 000 R10 000 Living Annuity @2.5% drawdown...
No. 159 – Ensuring all is in order for when you’re no longer around
Question My wife and I are in our mid-80s. I am not in very good health, and I would like to leave my affairs in the best possible order should I die before my wife. Our house is in my name only and I am thinking of making my wife the co-owner now. Is this a wise...
No. 160 – Tax-efficient ways of bequeathing offshore assets
Question I recently joined a company that has a group retirement annuity scheme. We all have our own retirement annuities, and the company pays the premiums with half of it coming off our income as a salary sacrifice. I read a recent article of yours where you told us...
No. 161 – Upfront fees plus costs make for a bad investment
Question I recently joined a company that has a group retirement annuity scheme. We all have our own retirement annuities, and the company pays the premiums with half of it coming off our income as a salary sacrifice. I read a recent article of yours where you told us...
No. 162 – How to protect your investments from the volatile Rand
Question I have R3 million in retirement savings and am looking for an income of R25 000 a month. Should I pass away, I would like my wife to receive the same pension that I received. I would also like my children to receive an inheritance from the retirement...
No. 163 – Beware of the tax implications of living overseas
Question I have R3 million in retirement savings and am looking for an income of R25 000 a month. Should I pass away, I would like my wife to receive the same pension that I received. I would also like my children to receive an inheritance from the retirement...
No. 164 – How to balance different needs when setting up a retirement income
Question I have R3 million in retirement savings and am looking for an income of R25 000 a month. Should I pass away, I would like my wife to receive the same pension that I received. I would also like my children to receive an inheritance from the retirement...
No. 165 – Inheritance implications for children living overseas
Question I have children who are living overseas. They never emigrated officially, and are now citizens of the countries they are resident in. They have absolutely no assets in, or income from, South Africa, and never have had, ever since they left South Africa?...
No. 166 – Safeguarding your family’s financial wellness
Question I have some questions about Life Annuities - the answer to which would probably be very helpful to other people considering the same decisions. Is it better to take a Life Annuity with a higher initial payout, but no escalation in the premium, or to take a...
No. 167 – Life annuities: a crash course
Question I have some questions about Life Annuities - the answer to which would probably be very helpful to other people considering the same decisions. Is it better to take a Life Annuity with a higher initial payout, but no escalation in the premium, or to take a...
No. 168 – Let your kids take over your life insurance policy
Question I will be retiring soon and have a life insurance policy for about R2.6 million. My monthly premium is R2555 with 7% cover growth and 10% premium growth. I no longer need the cover as I have no debt, or dependents. I also have sufficient liquid assets to...
No. 169 – Strategising how and where to invest efficiently
Question I will be retiring in 10 years’ time and am currently paying the maximum into my retirement savings. I have extra funds that I can invest. Would you recommend that I use these to pay off my bond or should I invest my funds elsewhere?Answer I like to follow a...
No. 170 – Options for generating income for a lump sum
Question We recently sold a flat which we used as an investment property as we found the hassle of maintenance and dealing with tenants was becoming a bit much (I am 70 and my husband is 75). We have R2.4m to invest. What would you recommend that we do in order to...
No. 171 – The two best ways a younger person can start saving for retirement
Question I am 30 years old and earn R 20,000 a month. I have no savings whatsoever and want to start putting some money away for my retirement. How do I go about doing this?Answer There are two investment vehicles that are worth considering: a retirement annuity and...
No. 172 – Beating the boon of surviving retirement
Question My wife and I retired seven years ago and are finding it increasingly difficult to come out on our budget. What should we do?Answer There are many pensioners who are in the same situation as you are. There are two main reasons for this: Pensioner...
No. 173 – Life annuities: weighing out the options
Question I’ll be turning 58 in just over a week's time. I have my pension money in a preservation fund until age 65. Herewith are a few questions: 1. I would like to draw an income but as I only turn 65 in 7 years time, is a Life Annuity recommended? 2. Can a Life...
No. 174 – Be careful before making any two-pot withdrawals
Question I recently saw a YouTube clip where a financial planner recommended using the two pot system to withdraw funds from retirement savings. This seems to fly in the face of all the advice I've received in the past. What are your views?Answer I had a look at the...
No. 175 – Considerations for optimal investment returns
Question I have seen several stories in social media about the imminent collapse of the American economy. We recently had a major collapse in the Japanese market and also saw the local stock market fall. Should we take our money of the markets and invest in gold...
No. 176 – The dangers of drawing from your pension fund
Question I want to withdraw R30,000 from my pension in order to settle some debt. What are the pros and cons of doing this?Answer I have had several questions like this over the past week. When it comes to your finances, you need to look at the short term as well as...
No. 177 – How pensioners can grow wealth and pay less tax
Question My wife and I are in our 80s and we each have a R1.8 million investment at the bank which gives us a combined monthly interest of R24,000. We use R5 000 of this to supplement my company pension each month. I have just done my provisional tax and I am...
No. 178 – How life insurance can protect your spouse if you’re the co-owner of a business
Question I founded a successful business 20 years ago with two others. All three of us are actively involved in its day-to-day management. As it is September, I took another look at my will where I have bequeathed my shares in the business to my wife. While I trust my...
No. 179 – How to decide between a retirement annuity and a tax-free investment
Question I am 55 years old and was thinking of increasing my pension fund contribution at work to 15% from 10%. But having read your article, is it not a better idea to invest the 5% in a tax-free investment until retirement? I have never had one before and neither...
No. 180 – Reasons why the setting up of a will is crucial
Question A lot of companies are offering free wills at the moment. What is the catch and is a will really necessary?Answer Take a look at who is offering the free wills and their motivation for doing so. It may be part of an altruistic national initiative to educate...
No. 181 – Buying an investment property? Here are some numbers to crunch
Question I need some financial advice regarding an investment property. I intend selling my existing property for R2m. I will use R1m as a deposit on a new property and invest R1million in a 5 yr fixed deposit. The interest earned per month is estimated at 10K per...
No. 182 – Tax-savvy tips around estate duty and other fees
Question I am an 80 year old widow and have R5m investment that will be maturing shortly. This provides me with an income of R33 000 a month on which I pay R5 000 in tax. As I also own a property, I am concerned that should I pass away, this R5m investment will result...
No. 001 – Retrenchment
Question I am a computer programmer at a large IT company. I have been notified that I will be retrenched at the end of August. I am 39 years old, divorced with a 10 year old daughter. I have had health issues in the past. I am worried that I will not quickly find...
No. 002 – Offshore investments
Question I have been hearing a lot of talk about the benefits of investing offshore. Should I do it and if so, how do I go about investing?Answer If you were living anywhere in the world, would you invest everything in South Africa? If the answer is no, then why...
No. 003 – How to live on interest income if interest rates decline
Question I have money in the bank that I use to provide me with an income. I am finding it difficult to make ends meet because of the decreases in the interest rate. What do you suggest I do?Answer Interest rates have decreased by 3% this year. This may not seem like...
No. 004 – How to save for your retirement – even if you have left it late
Question I am 42 years old, earn R40 000 a month and have not saved anything for retirement. How much do I need to retire on and what should I do about it?Answer The amount of money you need to retire on depends on how much you intend spending in a typical month when...
No. 005 – Living annuities
Question I am 73 and live off the income from a living annuity. Even though I have not increased my monthly income in two years, the capital value of the annuity has decreased significantly. What can I do to ensure that I do not run out of money?Answer This,...
No. 006 – Funeral policies
Question My father has just been to a friend’s funeral and wants to buy a funeral policy. Are they worthwhile and how do we go about choosing one?Answer If you had asked me this question a month ago I would not have felt as passionately about the value a funeral plan...
No. 007 – Divorce
Question I am getting divorced after 14 years of marriage. I never paid too much attention to my finances in the past. What do I need to do and what should I look out for?Answer Divorce has a massive impact on everyone in the family on all levels. There are so many...
No. 008 – How to save
Question I follow your column every week and am very interested in all the investment advice. However, my question is how does someone like me, who does not have a large sum of money to invest, go about accumulating a good nest egg for the long term? How do most of...
No. 009 – How to choose a medical aid
Question I was retrenched last month and need to join a medical aid. I had a look at a couple of websites and am very confused. What should I look out for when choosing a medical aid?Answer Medical aids can seem complex, but they are essentially made up of a number of...
No. 010 – Pros and cons of an investment property
Question I am thinking of buying some investment properties and using these to provide me with a pension when I get older. It looks good on paper but then there is a spreadsheet and there is the real world. What are the pros and cons of going this route?Answer...
No. 011 – How not to run out of money when you have a living annuity
Question I am a 69-year-old widow living off a living annuity. I draw a fixed amount from the living annuity each month. I have just received my annual document from the insurance company, and it looks like I am drawing a higher percentage than I was last year. I am...
No. 012 – How to get out of debt
Question During lockdown my salary was cut by 50%. I had some debt to begin with and this increased substantially. I am back on full pay now but am feeling stressed and not sure what I should do Do you have any suggestions on how to get out of debt efficiently?Answer...
No. 013 – How to spot a scam
Question I am a 73-year-old widow. I own my house and have an investment in an endowment policy. This policy matures in two years’ time and I intend using the proceeds to supplement my pension, which has not kept pace with inflation. My financial adviser contacted me...
No. 014 – Do you need life cover?
Question The coronavirus has made me think about whether my family will be financially secure should I or my husband pass away. What if the unthinkable happens and both of us pass away? We have a fair amount of cover but do not know if it will be enough. Is there a...
No. 015 – The pitfalls of owning foreign property
Question We recently sold a property and want to invest the proceeds offshore. Our children are living in England, so we are thinking of buying a property there. We can use it when we go and visit the grandchildren and when we are in South Africa, we can rent it out...
No. 016 – The end of financial emigration
Question I have been living in Australia for the past two years and am in the process of finalising my permanent residence. I’m still a registered taxpayer in South Africa. I have a preservation fund in South Africa and heard that there is a new law that’s going to...
No. 017 – Retirement annuities are a great estate planning tool
Question I retired three years ago and receive a passive income from my business. I own a retirement annuity, which is still active. My broker says I should continue contributing to it. Is this the right thing to do?Answer Before I get into the detail of your...
No. 018 – How to protect your finances from the consequences of a serious illness
Question I’ve heard that critical illness cover is important. I’ve done some internet research into it and have become very confused. Prices and benefits seem to vary immensely. What should I look out for and how do I go about choosing the right one?Answer Critical...
No. 019 – What to do about the declining fixed deposit rates
Question I have a fixed deposit of R1 million that will be maturing shortly. As interest rates have declined , I will not be renewing it. I am 79 year old widower and am looking for an income to supplement my current pension. What would you recommend?Answer There are...
No. 020 – Death and offshore assets
Question My father has several investments in South Africa and offshore. He wants to be able to transfer wealth as easily as possible to his children and grandchildren. I have been helping him here but am coming across terms like “probate” that I am not familiar with....
No. 021 – How to set up a pensions scheme for a small business without any schlep
Question I own a small business and am concerned that a number of my older employees have not made any provision for their retirement. I would like to assist them in this regard. I want to give them an ad hoc salary increase, with the proviso that they pay this money...
No. 022 – How to reduce estate duty and executor fees
Question I discovered that my parents do not have a will and have done no estate planning. My father says that he does not have enough assets to have to pay estate duty. Is he doing the right thing?Answer If you die without a will or your will cannot be found, then...
No. 023 – How to protect your income if you have your own business
Question I was retrenched and have set up my own business. It occurred to me that I may run into financial trouble if I am ill and cannot work for an extended period. My old employer had a nice benefit that paid me my salary if I could not work for more than 30 days....
No. 024 – An alternative to fixed deposits
Question I am 75 and my husband is 80. We have been using our savings in fixed deposits to provide us with an income. These fixed deposits are coming up for renewal this month. The income we can get is almost half of what we were receiving before. We cannot commit to...
No. 025 – Two things to consider if you get retrenched
Question I have just been retrenched and have received some documents from my employer. They talk about in-fund preservation and a continuation option on risk benefits.Answer It is difficult to give you an answer without seeing the details of your fund. I will,...
No. 026 – 3 Pension options you should consider when you retire
Question You recently proposed a solution to improve a pensioner’s cash flow that involved a living annuity, a life annuity and a discretionary income plan. Can you please explain the differences between these investment types?Answer All three products can provide you...
No. 027 – How to save on executor fees
Question I recently went through an estate planning exercise with my financial adviser in which we looked at the capital gains tax, estate duty and executor fees that would be paid should I die soon. The one number that really stood out was the executor fees. Do you...
No. 028 – Bitcoin
Question A number of my friends have made a lot of money by investing in Bitcoin. Should I invest in it?Answer If you invested R100,000 in Bitcoin a year ago, it would be worth more than R500,000. Go to any social gathering and you’ll hear people, behind their masks,...
No. 029 – Do you pay off debt or invest?
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Before last year’s lockdown,...
No. 030 – Should I donate my assets to my children to avoid estate duty?
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I have had several questions...
No. 031 – Clever investment structures can save you a lot of money
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer A wrapper is a structure...
No. 032 – What you should do with your pension fund if you emigrate
Question My family is in the process of emigrating to the UK. I am 50 years old and currently have R3-million in my company pension fund. I do not need this money just yet because I made a decent profit from the sale of our family home. I am not sure what to do. Do I...
No. 033 – An alternative to Money Market investments
Question I have R3-million in a money market account. The returns have not been that great. I am 75 and my wife is 70, and we use this money to supplement our pensions. Can you suggest an alternative investment for us?Answer There are a number of options open to you....
No. 034 – 5 money tips if you are freelancing or working for yourself
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Your situation is common among...
No. 035 – What living longer means for your financial planning
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer It is usually a good idea to...
No. 036 – What you can do if your retirement savings are too low when you reach retirement age
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I frequently come across this...
No. 037 – Medical aid options for a pensioner
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I share an office with my...
No. 038 – How to successfully find your way through the investment maze
Question I want to start investing but have heard horror stories about high fees, hidden costs and poor returns. How do I go about investing without making these mistakes?Answer When you make an investment, there are three things you need to look at: Costs; Potential...
No. 039 – Everything you need to know about moving money offshore
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer The South African economy...
No. 040 – How to get the best pension from your hard-earned retirement savings
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Your pension will depend on...
No. 041 – Tread carefully and do your homework on pension funds and early retirement
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer This is a massive decision...
No. 042 – Joint life annuities can help pensioners avoid the dreaded drawdown danger zone
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Well done on doing a cash flow...
No. 043 – The formula for calculating capital gains tax
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer In order to calculate capital...
No. 044 – Key issues to look out for on home office tax deductions
Question I am employed by a large company and have been working from home for most of the past year. Am I able to deduct home office expenses from my income tax?Answer I am always wary when it comes to answering income tax questions because there are so many factors...
No. 045 – Tips on how to effectively finalise your estate
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer The process of inheriting can...
No. 046 – Structure your policies to avoid the drawdown danger zone
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer There are a few options open...
No. 047 – Make sure your estate has liquidity to cover certain costs when you die
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer When you die, several costs...
No. 048 – Three principles on money management you can teach your children
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Your question is certainly...
No. 049 – Tax-efficient ways to make up for the shortfall of a defined benefit pension fund
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer The type of pension that you...
No. 050 – Key issues to consider to make sure your investments outlive you
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer There are three key decisions...
No. 051 – How to protect your finances and estate in case of dementia
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer This is an issue that is...
No. 052 – The pitfalls of old-style retirement annuities
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I have received several...
No. 053 – Top tips to secure a smooth inheritance process
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I recently attended a workshop...
No. 054 – Why income protection cover is a must-have
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Income protection is an...
No. 055 – Why investing offshore assets in sinking funds and endowments makes financial sense
Question In the past, you have spoken about the benefits of investing your offshore assets in a structure. What are these structures? Are they trusts?Answer I am definitely not talking about a trust. I have heard a number of horror stories where participants in South...
No. 056 – Reasons to keep your life insurance policy
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Any element of your financial...
No. 057 – What should I do with my RA when I turn 55?
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer As with most financial...
No. 058 – Why it makes sense for pensioners to invest in a retirement annuity
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer There is no age limit for...
No. 059 – What you need to consider before committing to a fixed-interest investment
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Without knowing more about...
No. 060 – Issues to consider if you have a property portfolio
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I cannot give you a...
No. 061 – How to manage a retirement annuity pay out
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer There are a few things you...
No. 062 – How to secure a pension-providing business
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer This is a very relevant...
No. 063 – Offshore portfolio jitters and a home loan dilemma
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Before you make any rash...
No. 064 – The best way to top up a retirement annuity
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Your situation is typical of...
No. 065 – How to check that your financial adviser is legit
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer There are several things you...
No. 066 – Four ways to plan for a healthy, wealthy future
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I like to approach financial...
No. 067 – Should you cancel life insurance when your bond is paid?
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I like to approach financial...
No. 068 – How to solve offshore asset problems while winding up an estate
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Estates currently take a long...
No. 069 – Advice on drawdown rates, and living and life annuities
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Unfortunately, you cannot...
No. 070 – How to create a succession plan for your family business
Question I have my own company and want to stop working at the end of the year when I turn 70. I have no retirement savings and intend living off some of the income from this company. At the moment, I own 100% of the shares of the company. My son is actively involved...
No. 071 – Consider the pros and cons of life and living annuities
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer When you retire, there are...
No. 072 – Reap the tax benefits of a carefully constructed succession plan
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I usually use a structure...
No. 073 – Why it’s a good idea to have 40% of assets invested offshore
Question I invested some money offshore last year and saw that it has declined by 8%. Should I cash it in and put the money back in the bank?Answer Before you cash in your offshore investment, you should ask yourself why you invested offshore in the first place. I...
No. 074 – The head vs heart approach to saving for your child’s education
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer When it comes to saving for a...
No. 075 – The taxing question of retirement savings
Question I will be retiring soon and have several assets that I can use to draw an income from. I want to pay as little income tax and estate duty as possible and also ensure that my money doesn’t run out. How do I do this?Answer I will go through the steps that need...
No. 076 – Find the sweet spot between risk and reward on every investment
Question I am worried about my investments. My local investments are down by 10% and my offshore ones by almost 20%. I am considering taking my money out and keeping it in the bank until the financial crisis is over. Is this a good strategy?Answer The investment...
No. 077 – It’s easy to invest through a platform, but be aware of the costs
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer There are two elements to this...
No. 078 – Beware of costly unintended consequences when drawing up a will
Question My wife inherited some money 20 years ago and we used it to purchase our family home. We have recently drawn up our wills and my wife would like to leave 50% of the property to our two sons as the house was purchased using a legacy from her parents. The...
No. 079 – Navigating the costs of transferring ownership of inherited property
Question My mother has been living in the same house for 60 years and has left it to me in her will. It is valued at R2.3-million. She is happy to pass on ownership while she is still alive. Will there be any adverse financial implications?Answer A number of costs are...
No. 080 – How to navigate living annuities, drawdown rates and volatile markets
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer When you take out a living...
No. 081 – A legitimate way to avoid donations tax
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Donations tax is a reality and...
No. 082 – The pros (and cons) of resigning from a defined benefit pension fund
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer As with most financial...
No. 083 – Here’s a financial game plan to relieve the stress after retrenchment
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I helped many people deal with...
No. 084 – How to create a viable succession plan and extract value from your practice
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Many professionals do not...
No. 085 – How to adjust your financial planning before your baby is born
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Having a child makes a massive...
No. 086 – How to keep your family financially stable during delays in winding up estates
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer I suspect that we are still...
No. 087 – Intestate succession: where there’s a will, there’s an easier way
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer We all have a will by default....
No. 088 – Set up a separate entity for your business to keep it running after you’re gone
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer It is very important that you...
No. 089 – What to consider when calculating the benefits of alternative energy sources
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer When it comes to setting up...
No. 090 – The pros and cons of investing funds offshore
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer It is easy to invest funds...
No. 091 – A shareholder buy-and-sell arrangement can preserve your business dynamic
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer The death of a major...
No. 092 – The implications of what used to be called ‘financial emigration’
Question I have been living in Australia for the past five years and have just been granted permanent residence status. I want to emigrate financially and would like to know what the implications are. My only asset in South Africa is a R1.6-million preservation...
No. 093 – The costs of implementing your will and bequeathing your estate
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer It is always a good idea to...
No. 094 – How to ensure you are making the most of your living annuity
Question I recently received a letter to confirm the drawdown percentage of my living annuity. To keep the same level of income, I had to increase my drawdown to 7%, as the total value of my investments had dropped. I am worried that I may run out of money. What can I...
No. 095 – All you need to know about bequests, marriage in community of property, capital gains tax and more
Question I have a number of questions regarding the abovementioned topics:Answer Correctly structuring your income when you retire is one of the most important decisions of your financial life. If you get it wrong, you could end up paying far too much tax on your...
No. 096 – All you need to know about Islamic marriages, property rights and antenuptial contracts
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Islamic marriages are not yet...
No. 097 – How to make sure you enter 2023 with your finances in order
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Review your budget We have had...
No. 098 – What to do with your pension fund after changing jobs
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer When changing jobs, there are...
No. 099 – How to ensure that your family benefits from your business
Question During the holidays, I took a good look at my personal finances and realized that I have invested pretty much all my assets in a business that I own with a partner. I have no retirement savings or other assets to speak of. My concern is that should I die,...
No. 107 – How to make it easy for children who live overseas to inherit
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer This is a situation that is...
No. 106 – Be careful of transferring assets before you die
Question I am moving down to Cape Town to retire and wish to buy a property. The property will not be financed though a bond as I will be using my savings to buy it. My sister recommended that I buy the property in the names of my two children as it will save on...
No. 105 – How to keep key employees and use your business to generate a pension
Question I recall reading a column that you wrote a couple of years ago about putting a structure in place so that younger employees can buy shares in a company. I foolishly did not cut it out so forgive me for asking a similar question again. I'm getting to that...
No. 104 – What to do if your life insurance premiums start doubling every 5 years
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Before we look at what you...
No. 103 – How to get the best pension that lasts for your whole life
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Managing your income when you...
No. 102 – How to make it easy for your heirs to inherit offshore assets
Question I have been doing some estate planning and am looking at how I can make it easier for my children to inherit from me and not pay any unnecessary tax. I have a substantial dollar-based share portfolio that is held offshore. I have heard that this can be costly...
No. 101 – How to choose the right medical product
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Each of these products is...
No. 100 – How to ensure that your emergency fund grows
Question I retired five years ago and have around R1 million in my bank account that I use as an emergency fund to pay for any unexpected expenses. Since I retired, I have withdrawn about R100 000. Is there a better way for me to invest this money in order to get a...
No. 108 – How to make it easy for your heirs to inherit foreign shares
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer If you are a South African...
No. 109 – What risk cover does a young person need?
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer It is difficult to answer this...
No. 110 – What to do if you get retrenched
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer The big challenge with...
No. 111 – What lump sum should you take from your retirement fund
Question I will be retiring soon and am entitled to take a lump sum of R2 million from our pension fund. I believe that we can take a lower lump sum in order to get a higher pension. What would you recommend that I do.Answer Deciding on what lump sum you should be...
No. 112 – Offshore considerations during estate planning
Question I have been doing some estate planning and am looking at how I can make it easier for my children to inherit from me and not pay any unnecessary tax. I have a substantial dollar-based share portfolio that is held offshore. I have heard that this can be costly...
No. 113 – Should I cancel my medical aid?
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer If you leave your medical aid...
No. 115 – How to invest offshore
Question The recent collapse of the Rand against the dollar has made me feel very unsettled. I think that it is time that I started moving some of my investments offshore. I have two questions How do I go about doing this? Is it wise to move funds when the rand is so...
No. 116 – How to get your small business to provide you with a sustainable income when you retire
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer This is a challenge that...
No. 117 – Should I sell my shares?
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer It is difficult to give you a...
No. 118 – How to turn your debt into wealth
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer In the words of Mr. Micawber...
No. 119 – How to pay less tax in a family trust
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer The capital gains tax rate for...
No. 114 – How to structure your retirement income to pay the least amount of tax
Question I retired three years ago, with half my income coming from my company pension fund and the other half from interest from investments. I am paying tax at a rate of 41%. Is there anything that I can do to reduce this amount?Answer Correctly structuring your...