WAT KAN JY VERWAG TYDENS JOU WELVAARTSREIS IN 2025?

Riaan Botha • December 5, 2024

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

Business Owners: Don’t forget about yourself.

By Ruvan J Grobler • February 6, 2025
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)

How do I pay less tax?

By PJ Botha • January 17, 2025
"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.
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