What Game are you playing?

Francois le Clus • April 1, 2021

I recently listened to a podcast by Morgan Housel which made me rethink the way I think about financial advice. I tend to think that everyone has the same goals in life, but this is a fundamental mistake on my part.

I recently listened to a podcast by Morgan Housel which made me rethink the way I think about financial advice. I tend to think that everyone has the same goals in life. I tend to think that everyone wants to make as much money as possible, accumulate as many assets as possible, and get out of debt as soon as possible, but this is a fundamental mistake on my part.


Everyone, including myself, has different goals. We get delight from different things in life. Everyone has a different outlook on life. Just because someone doesn’t want to pay off their debts as soon as possible doesn’t make them wrong; they just feel comfortable with debt. I tend to think that everyone wants to get out of debt as soon as possible because debt is a pet hate of mine.



Some people believe in Money market funds as long-term investments. Even though they may be in the wrong fund for the timeframe of their investments, they feel comfortable with this type of fund. Some people feel safe and comfortable in these portfolios, and they don’t care about making real long-term returns. They find joy in seeing their money providing consistent returns. They may leave money on the table in the future, but that’s not the point. The point is that they enjoy the growth and stability they see every day and the possibility of higher future growth doesn’t make them happy.

Think about crypto. Some people believe without a shadow of a doubt that these assets will grow substantially in the future and the financial system has failed so many times that it would be idiotic to be invested in “traditional” markets. For these enthusiasts, it’s riskier to be invested in these markets rather than alternative assets. For me, I don’t have enough courage to invest in crypto.


We all have different approaches to investing, debt, spending, happiness, etc. Just make sure you understand the game you’re playing and what makes you tick and do not play the game someone else is playing.


Listen to it HERE.


Francois Le Clus (PGDip Financial Planning)


Photo by Joshua Hoehne on Unsplash


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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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