Investing
Another overlooked pitfall of the DIY approach is the failure to account for hidden costs. Taxes, transaction fees, and capital gains implications can significantly erode returns if not carefully managed. From experience, we’ve found that investors are surprised to learn
Overconfidence bias occurs when investors overestimate their knowledge, downplay risks, or believe they can predict outcomes with greater accuracy than is realistically possible. It is a deeply human tendency to put too much faith in one’s own judgement, even when
Every asset in a portfolio should have a defined role—whether for growth, income, diversification, or liquidity. Random collections of investments rarely coalesce into meaningful outcomes. On the other hand, investing with intent means resisting the temptation of shiny opportunities that
One of the key features of a fee-based model is its transparency, as the cost is usually expressed as a clear percentage of assets under management or a fixed Rand amount, with no hidden commissions, rebates, or third-party incentives.
In terms of the Long-term Insurance Act, the annuitant may nominate one or more beneficiaries to receive the remaining value of the living annuity on death, meaning that a living annuity is both a tax-efficient estate planning tool and an
International markets offer South African investors access to industries and sectors that are largely underrepresented or absent locally, including biotechnology, semiconductor manufacturing, aerospace and defence, electric vehicle production, and cloud computing infrastructure – with these sectors often being at the
Following on from the above, it’s important that investors accurately declare their over-contributions to SARS and do not mistakenly claim them as tax-deductible in the year they are made, keeping in mind that incorrect reporting can result in the disallowance
Recency bias happens when investors give too much weight to recent events, ignoring long-term data and trends. For instance, after the sharp market crash triggered by the Covid pandemic in early 2020, many investors panicked and sold their investments –
Government has long incentivised retirement savings through a range of tax concessions. Individuals are allowed to contribute up to 27.5% of their taxable income, capped at R350 000 per year, to retirement funds, including RAs, on a tax-deductible basis.
A lack of adequate retirement facilities and the prohibitive costs of retirement homes has resulted in many retirees being forced to explore alternatives for their post-retirement living other than what they had planned for. For many retirees, assisted living, frail
