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Business owners are wealthy, aren’t they? Most of them are in terms of equity in their own business, their main focus. But personal finance as a business owner goes much deeper and that’s where we’ve seen neglect. Here are two of the biggest mistakes I’ve seen business owners make with their personal finances: Neglect personal finances: Businesses need cash to expand. And all too often, the decision is made to invest all the cash back into the business instead of using a portion to expand personal portfolios. The thinking is always: “expanding the business will provide higher future income”. But this cycle only continues and compounds the personal finance neglect. We see business owners start planning for retirement after building the business their entire life. The retirement plan is to sell the business, but there is no buyer and no personal investment portfolio to fall back on. Insurance overcontribution: Life insurance will most definitely provide for loved ones on your passing and protect your finances against disability and illness. It’s a crucial part of financial planning and the first step towards moving toward financial certainty. But big insurance premiums will not bring you closer to financial freedom. I don’t blame you, there are many financial advisors who use business owners as an opportunity for large premium policies with large upfront commissions. Life insurance should be anchored in financial planning principles, only take out cover for the need identified through comprehensive analysis. Business owners understand risk, and to not diversify your own retirement income is a mistake you’ll come to realize when it’s too late. There can be a healthy mid-point between investing back into your business and investing in your personal finances. We often forget that financial planning provides solutions to problems around tax and estate planning, it’s not merely about insurance and investments. From operational effectiveness to successful distribution, business owners need to prioritize their time. Making it extremely important to have a trustworthy Wealth Manager who can effectively navigate the pitfalls and challenges of a successful business owner’s personal finances. What steps can you take with your Wealth Manager? Review your personal budget. Assess your level of risk and only cover what’s needed. Do a stock take of your investment portfolio. Set financial goals and allocate funds from your budget to reach them. Ruvan J Grobler RFP™ (PGDip Financial Planning)

"The only things that hurts more than paying an income tax is not having to pay an income tax." Dewar, Thomas. This quote is undoubtedly optimistic, but it also contains some truth. Tax payment is both a luxury and a hardship. Although you must pay taxes of some kind, there are ways to lessen your tax liability. It's critical to distinguish between tax avoidance and tax evasion before we begin. It goes without saying that tax avoidance is against the law and unacceptable. Tax avoidance from an investing standpoint refers to avoiding paying needless taxes as a result of poor investment planning. As February, the end of the financial year, is drawing near, now is the great time to assess your existing financial status and make the most of the tax benefits available to you. There are the following choices: Retirement Annuities Retirement Annuities (RAs) are among the best options for tax planning. You can take advantage of the following noteworthy tax advantages: Your voluntary donations to a RA are tax deductible up to 27.5% of your taxable income, or R350 000. This is known as an individual's tax benefit. This implies that the money you save in a RA may be taken into account when calculating your income tax and subtracted from the amount of tax due to SARS. For the duration of the investment, there are no applicable income, capital gains, or dividend taxes. Depending on prior lump sum withdrawals, up to R550 000 of your lump sum payout may be tax-free upon retirement. The remaining amount is thereafter subject to taxation at the rates specified in the retirement lump sum tax table. Neither a living annuity nor a RA are subject to estate duty. Lump amounts received by beneficiaries upon the death of a RA investor are free from estate duty (with the exception of contributions that are prohibited). Tax-free savings Different to a RA, the contributions to a tax-free savings account are made from post-tax income and you don’t get the tax benefit on contributions. However, you are free to take your money out whenever you choose. An excellent approach to supplement your retirement funds or save for a long-term objective, such as your children's university fees. During the investment period, no income, capital gains, or dividend taxes are due, just like with a RA. Remember that you have a lifetime contribution cap of R500 000 and an annual contribution cap of R36 000 (or R3 000 per month) for all of your tax-free savings accounts from all providers. Additional tax tactics you may use include: Tax loss harvesting: This tactic involves selling some financial assets at a loss to lower your tax obligation at the end of the year. You can use tax loss harvesting to offset capital gains that result from selling other investments or assets at a profit. Utilise your exemptions: You are eligible for a R 40,000 annual capital gains exemption. Perhaps it's time to move across investment funds or take a profit on a well-executed investment. You can also take advantage of an interest exemption for R 23 800 (R 34 500 for individuals over 65). Your investment plan may need to be reevaluated if your interest exceeds that amount. Donations: You are exempt from donation tax if you donate R100,000 annually. To lower your estate for estate duty reasons, now is an excellent moment to give R 100,000 to a family trust or your kids. You will also receive a deduction for your donation if it is made to a charity that has Section 18A approval. The aforementioned can undoubtedly lessen the tax burden, but it won't eliminate it. Paying your fair amount of taxes is important, but you shouldn't pay more than is necessary.

Aan die begin van elke jaar is dit menslik dat ons wonder of ons welvaartsportefeulje reg gestruktureer is vir die jaar wat voorlê. Kom ons kyk in die kristalbal wat moontlik kan gebeur: Plaaslik: Inflasie in Suid Afrika is onder beheer en daarom kan ons verwag dat die plaaslike rentekoerse sal verlaag. Geskiedenis wys egter dat die rentekoers situasie in die VSA ’n bepalende rol speel in plaaslike rentekoers veranderinge. Die stimulasie van die Suid Afrikaanse ekonomie is ’n prioriteit van die Regering van Nasionale Eenheid (RNE) met die doel om werk te kan skep. Gevolglik sal samewerking tussen die privaat sektor en die regering veroorsaak dat JSE gelyste maatskappye groter wins sal maak en gevolglik kan pryse van die aandele van die betrokke maatskappye op die JSE styg. Ekonome verwag ’n 1,7% reële ekonomiese groei vir 2025 in Suid Afrika. Die prys/verdienste verhouding van aandele op die JSE wys dat die aandeelpryse in verhouding tot hulle verdienstes goedkoop is en daarom kan verwag word dat maatskappye met bo gemiddelde verdienste se pryse sal styg. Effekte/bonds se pryse het na die inwerkingstelling van die RNE aanvanklik bo- gemiddeld gestyg maar later weer sydelings beweeg. In ’n rentekoers dalende siklus styg effekte se pryse gewoonlik en daarom kan ons verwag dat in gunstige ekonomiese toestande die groei op beleggings in effekte sal styg. Internasionaal: Indien die verkiesingsbeloftes van Pres Tump om onder andere invoer tariewe in te stel, geimplimenteer word, sal dit finansiële markte internasionaal raak. Die onlangse arbeidsmark statistieke in die VSA toon dat die ekonomie steeds sterk groei. Inflasie vrese kan veroorsaak dat rentekoerse in die VSA langer hoog sal bly. Geo -politieke spanninge bring onsekerheid by beleggers omdat hulle gekonfronteer word met die vraag of hulle risiko moet neem of eerder kapitaal moet beskerm? Gaan die ekonomiese inisiatiewe van China om hul ekonomie te stimuleer, suksesvol wees en hoe gaan hul ekonomie reageer indien die VSA invoertariewe instel? Die antwoord op hierdie vraag sal ’n invloed uitoefen op aandelepryse in China . Gevestigde ekonomië se effekte/bonds se verdienste is laag in verhouding met die van die onwikkelende ekonomië. Indien die effekte in gevestigde ekonomië beter presteer agv dalende rentekoerse, kan hul vir beleggings oorweeg word.  Riaan Botha 15 Januarie 2025

This year promises to be another wild one. These talking points are all driven by external factors that we as retail investors have no control over, but it's important to consider the effect that they can have on our portfolios. Both positive and negative outcomes will hold opportunities for patient investors. Grey Listing: In February 2023 South Africa was placed on the Financial Action Task Force(FATF) grey list for not meeting international standards on prevention of money laundering and terrorist financing. The FATF will conduct an onsite visit in February 2025 to confirm which actions were taken and make its recommendation in June 2025. If we are successfully removed from the grey list, we can expect increased foreign investment into the South African economy. SA Interest Rates: In 2024 the MPC finally started cutting rates and with the final meeting in November, the MPC reduced interest rates by 25 basis points bringing the prime lending rate to 11.25%. Economists are predicting further 50-75 basis point cuts throughout 2025. I personally believe we have scope for a bit more, but we have seen the MPC to be extremely conservative. Donald Trump and South Africa: If Donald Trump pushes for US centred policies while renegotiating trade policies, global trade could be disrupted and might negatively affect South African exports. The AGOA agreement is set to expire in September 2025, but we hope to see it be extended again. US Dollar Dominance: US Centred policies may cause volatility in global markets which can strengthen the Dollar. Emerging market currencies like the Rand may then weaken. This does however create opportunities for SA investors investing in Dollars. Geopolitical Tension: Tensions have been high in recent years with the Russia-Ukraine conflict and recently with the Israel-Palestine conflict. We may however see tensions intensify between the US and China. This will disrupt global exports and put extra strain on China’s ailing economy. In 2024 foreign investors became net sellers of China stocks over these concerns. Advancements in Artificial Intelligence(AI): It’s almost impossible to keep up with the new advancements in AI we see every day. As an example, *in December researchers at Stanford John Hopkins taught robots how to do medical procedures on their own. These advancements may keep on fuelling the growth in AI and tech stocks in 2025. *https://www.washingtonpost.com/science/2024/12/22/robots-learn-surgical-tasks/?utm_source=superhuman&utm_medium=newsletter&utm_campaign=what-to-expect-at-ces-2025&_bhlid=a0ae4312fd577606199656c699bb259e1b38726c) Ruvan J Grobler RFP™ (PGDip Financial Planning)

Ons weet dat die omskrywing “welvaart” meer as die geld situasie van ‘n persoon beskryf. Dit raak ook die”welstand van ’n persoon “ wat deur sy/haar finansiële situasie geraak word. Met die leuse “Jou welvaart ons prioriteit” poog Bovest om deur middel van professionele finansiële beplanning, publikasies en die sosiale media om elke leser te bemagtig om hul persoonlike welvaart te verbeter. Die finansiële markte in Suid Afrika het in 2024 as gevolg van ‘n rentekoers verlagende siklus asook die instelling van die Regering van Nasionale Eenheid (RNE) goed presteer. Die heersende positiewe sentiment in die ekonomie sal na verwagting voortduur en daar kan verwag word dat rentekoerse verder sal daal. Hierdie faktore kan meewerk dat 2025 weereens ’n goeie jaar vir beleggers in die plaaslike groei bate-klasse sal wees. Beduidende politieke veranderinge het ook hierdie jaar in Suid Afrika plaasgevind met die ANC wat sy meerderheid by die stembus tydens die Nasionale en Provinsiale Algemene verkiesing.verloor het. Die voortspruitende vorming van die RNE is deur die finansiële markte goed ontvang. Dit het ’n dinamiese tydperk in die plaaslike politiek ingelui omdat besluite deur middel van konsensus geneem moet word. Internasionale finansiële markte gaan die inhuldiging van Pres Trump in Januarie 2025 verwerk. Aangesien dit sy tweede termyn is, kan verwag word dat hy volstoom sy verkiesingsbeloftes gaan implimenteer. Daar sal veral met afwagting gekyk word na wat die ekonomiese implikasies gaan wees as hy sy dreigiment om bestaande handelstariewe op invoerbelasting na die VSA te hersien, implimenteer.  Bovest wil graag sy kliënte bedank vir hul lojale ondersteuning gedurende die afgelope jaar. Mag julle saam met julle geliefdes die vrede van Christus tydens kersfees ervaar. Die wens word uitgespreek dat die wat met vakansie gaan, veilig sal reis en uitgerus terugkeer vir 2025. Riaan Botha

"I'm never doing this again" This is what I said last Saturday afternoon as we started to climb the last 5 hills in the last 30 of the 200km cycle race called the Double Century. It was the 3rd time I have said it, in 3 consecutive years Only to come back and compete again the next year. Challenging ourselves physically is about a lot more than just pushing to what we think our physical limits are. It's about creating the discipline to train, the perseverance to push through and silencing those inner voices when you want to quit. It's also strange how we quickly forget about the pain and suffering and only remember the positive accomplishment and memories. I’d like to share an article I recently read from Siobhan Simpson, Head of SA Unit Trusts at Ninety one, who shared a similar experience this year. She went through the exciting yet uncertain phase of giving birth to her daughter and shared the lessons she learned throughout and how we can apply these insights into managing our own investment portfolio. She also shares some interesting stats on how investing over different time periods can greatly influence the outcome and why it’s never a good idea to wait for the right moments Read the article here Enjoy the festive season with your loved ones and stay safe out there. Geo Botha Marketing Director

The "silly season" is a time of year when people tend to spend more money and it can be a good time to review your finances and make plans to save. Here are some tips for managing your finances during the silly season: Budget : Create a realistic budget for holiday spending that includes gifts, travel, food, and decorations. Review subscriptions : Check your recurring subscriptions and cancel any you no longer use. Review insurance : Compare insurance renewals quotes to ensure you get the best deal. Review medical aid : Check your medical aid plan to ensure it still meets your needs. Review investments : Consult your financial advisor to make sure your investments align with your goals and risk tolerance. Use your bonus wisely : If you receive a year-end bonus, consider paying off debt or adding to your emergency fund. Plan for January : Start preparing for school expenses. Plan for tax season : Gather documents like medical expense receipts and proof of retirement contributions. Check your budget after the holidays : Assess whether you stuck to your budget and make plans to pay back any overspending. Consider free or inexpensive outings : Instead of an expensive venue, consider a picnic at the park or beach, or a hike. Buy gifts for fewer people : Instead of buying a gift for every person, choose one person to buy a gift for. Confession time: When I had decided on the topic for this month, I took to AI and within less than 30 seconds, the above content popped out! I reviewed the content and this was very well put, so all credit to AI! I wish you all a Blessed Christmas, full of joy, love, and peace, and remember the reason for the season. My tip (not AI): Don’t get caught of in the busyness and silliness of the season, rather take time out to become quiet and reflect on what is important in your life. May you have a prosperous 2025.

The past four years taught us how quickly an epidemic can disrupt the world—and how resilient life can be as things eventually return to normal. Financial markets reminded us of their temporary nature, and emotional reactions often led to regret. For instance, if you disinvested during the market downturn, you likely missed out on the rebound. Similarly, if you splurged on a new home or car, you might now feel the sting of higher repayments. During the pandemic, South Africa's prime interest rate dropped to 7.25%. However, inflation surged over the next two years, pushing rates to a peak of 11.75%, with today's rate at 11.25%. The impact on debt was significant: A R3 million home bought at 7.25% had monthly repayments of R23,711.28. At 11.75%, that jumped to R32,511.21. A R1 million car financed at prime +1% over 60 months went from R20,396/month to R22,625/month today. These challenges highlighted the need to plan for worst-case scenarios, not just best-case ones. Building flexibility into budgets is essential to handle rising interest rates. Another key takeaway was the importance of staying invested during market turmoil. For example, the S&P 500, FTSE 100, and JSE Top 40 saw sharp declines in early 2020 due to COVID-19 but rebounded significantly within six months. Those who panicked and moved to money market funds likely missed out on substantial growth.

After the COVID lockdowns, the SARB pushed up interest rates to fight rising inflation. This made money market rates rise and investors rushed to take advantage. Billions were moved from shares into savings account even though share prices and dividend growth were on the horizon. Many South African investors choose to earn interest through bank savings and fixed deposits but neglect to take taxes into account. Interest earnings are taxed as income, effectively increasing your taxable income. A shock to many when their tax returns are due. SARS does however give you a small annual exemption on interest earnings: Under 65 years of age – The first R23 800 of interest income is exempt. 65 years of age and over – The first R34 500 of interest income is exempt. Here is an example to illustrate the post-tax rate and pay out for three different income tax rates. The conclusion being that high earners should be careful of interest earnings.