The F Word: Finance: Recent Episodes
The F Word: Finance
In school we learn all about Chronozones, Pythagoras, Trigonometry and Shakespeare. All topics that although they might be interesting , more often than not they are irrelevant and never used. Yet we neglect topics that every person is sure to encounter in his or her lifetime. Topics like setting up a budget, paying tax, saving and basic financial terminology are swept under the carpet. We treat Finance like a swearword! Parents don’t talk to their children about money. It’s for Grownups and they chase the kids out of the room. Couples steer away from this topic and even if they do decide to talk about it, it ends up in a fight. Friends would also prefer to stick to more irrelevant “interesting topics like the weekend game or the new make-up range.
Brothers Geo and PJ embark on a journey to change the perceptions of finance.
In Society, Finance is treated like a swear word! We overcomplicate it. We make it boring. We avoid it.
In school, we learn all about Chronozones, Pythagoras, Trigonometry, and Shakespeare. All topics that although they might be interesting, more often than not they are irrelevant and never used. Yet we neglect topics that every person is sure to encounter in his or her lifetime. Topics like setting up a budget, paying tax, saving and basic financial terminology are swept under the rug. Parents don’t want to talk to their children about money, it’s for Grownups and they chase the kids out of the room. Couples steer away from this topic and even if they do decide to do so, it ends up in a fight. And as friends, we also prefer to stick to more “interesting' topics like the weekend game or the latest make-up range.
We also aim to reach people who might not have the access or ability to a wealth manager and want to empower them to take control of their finances.
Please feel free to engage with us and ask questions or recommend topics you would like us to cover.
In episode 3 van ons welvaart vrae reeks kyk ons na die vraag: Moet ek my besigheid begin om welvaart te stig?
In ons reeks van Welvaart Vrae kyk ons na hoe n Vryskut werker te werk moet gaan om welvaart te skep.
In ons heel eerste Afrikaanse episode bespreek ons die vraag: Is dit noodsaaklik om jou passie te volg om suksesvol te wees?
Hierdie is die eerste vraag in n nuwe reeks wat ons gaan vrystel saam met ons nuwe KykNet TV reeks genaamd: Welvaartskeppers. Die reeks het 13 episodes en begin op Donderdag, die 7de April vanaf 17:30 op kanaal 144 op DSTV.
As welvaart bestuurders het ons gesien daar is n behoefte by mense om meer te weet oor hoe om welvaart te skep. Ons het by suksesvolle mense gaan aanklop en deel graag hulle wenke met julle.
Laat weet ons gerus indien jy enige kommentaar of ander Welvaarts vrae het by geo@bovest.co.za
Brothers Geo and PJ embark on a journey to change the perceptions of finance.
In Society, Finance is treated like a swear word! We overcomplicate it. We make it boring. We avoid it.
In school, we learn all about Chronozones, Pythagoras, Trigonometry, and Shakespeare. All topics that although they might be interesting, more often than not they are irrelevant and never used. Yet we neglect topics that every person is sure to encounter in his or her lifetime. Topics like setting up a budget, paying tax, saving and basic financial terminology are swept under the rug. Parents don’t want to talk to their children about money, it’s for Grownups and they chase the kids out of the room. Couples steer away from this topic and even if they do decide to do so, it ends up in a fight. And as friends, we also prefer to stick to more “interesting' topics like the weekend game or the latest make-up range.
We also aim to reach people who might not have the access or ability to a wealth manager and want to empower them to take control of their finances.
Please feel free to engage with us and ask questions or recommend topics you would like us to cover.
When it come to investing, Tax planning plays a vitality important role.
In this episode, PJ, who is a qualified Chartered accountant and Tax Practitioner, share some insights on how to minimize your tax payable.
As always, lease your questions and comments at: geo@bovest.co.za pj@bovest.co.za
When it come to investing, Tax planning plays a vitality important role.
In this episode, PJ, who is a qualified Chartered accountant and Tax Practitioner, share some insights on how to minimize your tax payable.
As always, lease your questions and comments at: geo@bovest.co.za pj@bovest.co.za
One of the most FAQ we get revolves around fees and how it works and what Investors should look out for.
Lately there has been a big drive in the financial industry to simplify the fee structures and to make it more transparent and comparable. And while it can sound complex when you hear about TER and EAC's it is important to be aware of the fees on your investment as they will ultimately impact your returns.
In this episode we discuss fees and how they are payable. We try to simplify it but please do not hesitate to contact us with your questions at Geo@bovest.co.za
In this episode we share 5 investment tips which is used by all our wealthy clients. They are easy to understand, but difficult to execute.
Stick to them and set yourself up for long term financial success.
Happy Investing Geo and PJ
We continue exploring the 4 primary asset classes by looking at the 2 growth asset classes: Listed Property and Equity. Investors can expect higher returns over the long term in these asset classes, however they can be volatile in the short term.
Before deciding which asset class is best suited for your needs, know your goal, your aim with the investment and then determine the percentage allocation to each of the 4 asset classes.
Get in touch at: geo@bovest.co.za or PJ@bovest.co.za
What happens with your money when you invest? What are you buying and where does your money go?
In this episode we take you back to the start of investing by discussing the 4 Primary asset classes one can invest in. These are the building blocks of any Unit trust or “Collective investments scheme”. In part one we look at the more defensive or conservative asset classes: The Money Market and Bonds. We explain what they are as well as the characteristics and investor can expect when invest in them.
For questions or comments, get in touch at: geo@bovest.co.za or PJ@bovest.co.za
What exactly is a Retirement annuity and how does it compare to a Flexible Investment, Share portfolio or 5 year Endowment.
While it can be confusing, understanding the investment vehicle/structure you are investing your money in is very important. While there's limitations and restrictions on certain vehicles, they can offer significant tax and estate duty benefits.
Once again, it is very important to be clear on you investment goals as it is important for these vehicles to serve them.
Post your questions on geo@bovest.co.za
It can easily be overwhelming and confusing when you hear about the different role-players: There's financial advisors, asset managers, the administrative company and investment specialists.
In this episode we dissect the various role-players and discuss the value they should ad and the fees you can expect. Lower fees doesn't necessarily mean the investment will be a better one, but it's rather the value each role-player can add for the fees they charge.
Do you think all the role - players are necessary? Share your thoughts at geo@bovest.co.za
Most people want the best possible return for the least amount of risk, but is it that simple? How do you know what amount of risk is acceptable and what can you expect in return?
In this episode we answer these and other questions. We also discuss why it is very important to determine the goal of your investment, as this will impact your time horizon and ultimately your risk profile as an investor.
You are welcome to comment or get in touch at geo@bovest.co.za
Brothers Geo and PJ embark on a journey to change the perceptions of finance.
In Society, Finance is treated like a swear word! We overcomplicate it. We make it boring. We avoid it.
In school, we learn all about Chronozones, Pythagoras, Trigonometry, and Shakespeare. All topics that although they might be interesting, more often than not they are irrelevant and never used. Yet we neglect topics that every person is sure to encounter in his or her lifetime. Topics like setting up a budget, paying tax, saving and basic financial terminology are swept under the rug. Parents don’t want to talk to their children about money, it’s for Grownups and they chase the kids out of the room. Couples steer away from this topic and even if they do decide to do so, it ends up in a fight. And as friends, we also prefer to stick to more “interesting' topics like the weekend game or the latest make-up range.
We also aim to reach people who might not have the access or ability to a wealth manager and want to empower them to take control of their finances.
Please feel free to engage with us and ask questions or recommend topics you would like us to cover.
You've got the idea, you know where you want the business to go, but where do you start?
Whether it's a side hustle or your full-time job, starting a business can be daunting. There are so many seats you have to sit on and so aspects to consider. Most of the time you have to be The CEO, FD, HR manager, Head of sales and marketing, and employee all at once.
In this episode, we discuss the steps one can take when starting a business as well as the financial aspects you need to look out for.
Enjoy and let us know if you have any questions.
Geo and PJ
Brothers Geo and PJ embark on a journey to change the perceptions of finance.
In Society, Finance is treated like a swear word! We overcomplicate it. We make it boring. We avoid it.
In school, we learn all about Chronozones, Pythagoras, Trigonometry, and Shakespeare. All topics that although they might be interesting, more often than not they are irrelevant and never used. Yet we neglect topics that every person is sure to encounter in his or her lifetime. Topics like setting up a budget, paying tax, saving and basic financial terminology are swept under the rug. Parents don’t want to talk to their children about money, it’s for Grownups and they chase the kids out of the room. Couples steer away from this topic and even if they do decide to do so, it ends up in a fight. And as friends, we also prefer to stick to more “interesting' topics like the weekend game or the latest make-up range.
We also aim to reach people who might not have the access or ability to a wealth manager and want to empower them to take control of their finances.
Please feel free to engage with us and ask questions or recommend topics you would like us to cover.
Brothers Geo and PJ embark on a journey to change the perceptions of finance.
In Society, Finance is treated like a swear word! We overcomplicate it. We make it boring. We avoid it.
In school, we learn all about Chronozones, Pythagoras, Trigonometry, and Shakespeare. All topics that although they might be interesting, more often than not they are irrelevant and never used. Yet we neglect topics that every person is sure to encounter in his or her lifetime. Topics like setting up a budget, paying tax, saving and basic financial terminology are swept under the rug. Parents don’t want to talk to their children about money, it’s for Grownups and they chase the kids out of the room. Couples steer away from this topic and even if they do decide to do so, it ends up in a fight. And as friends, we also prefer to stick to more “interesting' topics like the weekend game or the latest make-up range.
We also aim to reach people who might not have the access or ability to a wealth manager and want to empower them to take control of their finances.
Please feel free to engage with us and ask questions or recommend topics you would like us to cover.
Brothers Geo and PJ embark on a journey to change the perceptions of finance.
In Society, Finance is treated like a swear word! We overcomplicate it. We make it boring. We avoid it.
In school, we learn all about Chronozones, Pythagoras, Trigonometry, and Shakespeare. All topics that although they might be interesting, more often than not they are irrelevant and never used. Yet we neglect topics that every person is sure to encounter in his or her lifetime. Topics like setting up a budget, paying tax, saving and basic financial terminology are swept under the rug. Parents don’t want to talk to their children about money, it’s for Grownups and they chase the kids out of the room. Couples steer away from this topic and even if they do decide to do so, it ends up in a fight. And as friends, we also prefer to stick to more “interesting' topics like the weekend game or the latest make-up range.
We also aim to reach people who might not have the access or ability to a wealth manager and want to empower them to take control of their finances.
Please feel free to engage with us and ask questions or recommend topics you would like us to cover.
The career path of a medical doctor looks vastly different from most other industries. Firstly it's very hard just to get in to be able to study medicine, whereafter 6 years of studying and practical work will commence. This is followed by years in community service and the decision on whether to specialize or not.
In part one of our 3 part miniseries, we look at recently qualified medical professionals and speak about their financial challenges that might occur and how they can be addressed.
If you have any questions or comments, kindly email geo@bovest.co.za
Any investor's main goal is to get the maximum amount of return for the least amount of risk.
And while there is no short or easy answer to this broad question, in this episode however we differentiate between the 4 main asset classes available to invest in a unit trust as well as discuss the expected risk and returns in each of them.
The 4 asset classes we touch on are: -The Money Market -Bonds (Fixed income) -Listed Property -Equities (Shares) and within each of these asset classes, you can invest locally and offshore, each with its own risk/reward profile.
Once again it is important to make sure that you have goals and a financial plan in place as to ensure which asset class will be best suited to adhere to your needs.
For any questions or comments, contact us at info@thefword.co.za
We all want to create wealth and debt-free, but where do you start? Should I first pay of my debt, should I start investing, or should I try and do both?
While there is no short answer and it greatly depends on your unique circumstances, we have created a list you can use as a guideline:
1) Pay of bad debt 2) Start an "Emergency Fund" 3) Invest for Retirement (Tax benefit) 4) Goal specific investing 5) Create wealth
If you have any questions or comments, kindly contact us at info@thefword.co.za
You can't put a price on education... or can you?
In this episode, we discuss the relevant topic of saving for your children's university fees. Where do you start? How much will it cost? Which investment vehicle should I use?
We discuss these and other frequently asked questions regarding saving for you child's education.
Retirement, the topic we never want to discuss until it's often too late.
In this episode, we discuss the question of 'How much is enough?' and while it once again depends on where you currently are in your life, we provide you with a guideline on how much to invest on a monthly basis.
We also discuss the other benefits there is to using a retirement annuity and how you should incorporate your Pension or Provident fund contribution into the calculation.
Unfortunately, we see the stark reality of someone not having saved enough for retirement and that's why we urge anyone to take it seriously and start saving as soon as possible.
Offshore Investing - A topic that's frequently discussed but often misunderstood.
In this episode, we discuss the difference between direct and Indirect offshore exposure, whether you need exposure in your portfolio, what to keep in mind as well as how you can access it.
We are living in very uncertain times and we often get asked the same questions around money and Investing. We have therefore started a new series around Frequently Asked Questions.
In the first episode, we discuss the question, Where should I invest in these current uncertain times.
We touch on 4 principles that any person should apply today when thinking about investing.
World-class triathlete, coach, and Business owner, Vicky van der Merwe joins us for this exciting interview where we look at the principles that one should follow and implement to improve your Fitness as well as financial situation.
We discuss the following principles : -Goal setting -Consistency -Hiring a coach -Don't Compare & -Have patience and trust the process
Right at the end we also talk about how that in order to achieve your goal, one needs to choose the level of sacrifice they are willing to make.
Enjoy the episode!
The 'Time Horizon' plays a very important part when it comes to investing.
Time Horizon refers to the amount of time your money will be invested before you would need to withdraw it for something else. The time horizon will then guide the fund which will be selected and indicate the amount of risk the money should be exposed to.
Therefore when you are investing for the longer term, you should not be worried about short term results as that was not the goal of the investment. Let's use the analogy of a marathon runner. The athlete knows that the race is 41km long. She will not measure herself against the pace she would run in a 10km or 21km race as that is not the aim.
We need to have the bigger picture in mind, the long term and then evaluate accordingly.
People don't like to lose!
While this might sound obvious, there is more to it than it seems. We all want upside, growth, to participate when things go well. yet we are so afraid to lose that we would rather not participate.
Be aware of this behavior the next time you are analyzing different options when making a decision.
In the 2nd episode of our 4 part Miniseries on Behavioural finance we look at the personality trade: Overconfidence
We discuss how overconfidence in itself is not necessarily a bad trade to have, but not noticing it can destroy your wealth when it comes to investing.
We also look at the two practical examples of how overconfidence can influence you returns by: -Excessive trading: I know better than anybody else & -Not letting go: Where you hold on to a bad investment for too long as you don't want to admit you made a mistake in buying it.
Contact us at info@thefword.co.za if you have any questions or comments.
It's very difficult to control your emotions when it comes to your money, but being aware of it might stop you from making bad decisions.
In this first part episode of our Behavioural Finance mini-series we discuss the 2 most dominant emotions in Investing: Fear and Greed. The markets move in cycles, it goes up and it goes down and we will all have to face the emotions of fear and greed at the various stages. It's impossible to ignore these emotions, but being aware of them and using them to your advantage, can allow you to take advantage of the behavior of the crowd.
The markets are down, people are fearful, what will you do?
In this episode, we briefly look at how the Corona-virus is impacting markets globally and what we as investors should do.
This episode also leads us into our next 4 Part mini-series around Investor behavior and what we need to focus on.
Before we reach our final destination, we have to make sure that all the previous steps are working together and in unison towards achieving our financial goal.
In this step, we discuss how to incorporate Tax consulting, Estate planning and setting up your Will as part of your financial plan. We also explain the importance of starting the process all over again- at least annually to ensure you regularly review and adapt your plan to your circumstances.
In the previous episode we made sure that our Wealth is protected should an unfortunate event occur. Now we can start our journey to aggressively build our wealth and increase our Net worth.
In this episode we discuss the different investment 'vehicles' : -Retirement annuity, -Endowments -Flexible Investment & -Tax-Free savings We explain what they should be used for, how they should be implemented, what people might misunderstand as well as the pros and cons of each of these different structures.
Most people see it as a grudge purchase: To pay money towards a policy that will only pay out if something bad happens to you, it is not a topic most people are excited to discuss. On top of that, it is often sold by greedy insurance salesmen who bombard you with jargon and 'what if' scenarios and scare tactics.
Medical aid, Insurance, Life Cover, Income Protection, Disability, Critical illness cover, etc..
In this episode, we discuss where these products fit in on our journey to financial freedom. We also discuss how they work, the difference between the insurance companies and how financial advisors get paid for selling these products.
We explain that they are very important, but that it only plays a small part in a comprehensive financial plan and should not be the plan itself.
For any questions or comments, reach out to us at info@thefword.co.za
Now that we have established where we are and where we want to go, we need the fuel, the money to get us there. In step number 3 we look at creating a personalized Budget in order to organize our cashflow and work toward building our Nett worth.
We often have a very negative connotation when it comes to budgeting as it involves long term thinking and short term sacrifice. However, if we keep steps nr 1 and 2 in mind, we will see the bigger picture and see a budget as the means and not the end. We also explain the 50/20/30 principle and how you can use it as a guideline when you create your budget.
Let us know if you have questions or comments by emailing us at info@thefword.co.za
In Step nr. 1 we discovered where we currently are by calculating our Net worth. Now we want to know where we are going, what's our destination, our end game and we do this by "Setting Financial Goals" for ourselves.
Differentiate between short, medium and long term goals. Be clear, realistic, write it down and have someone you trust to keep you accountable.
In this episode, we take the first step on our journey on becoming financially independent with our program the "6 Steps of a Financial Plan"
Before you start any journey, you have to know where you currently are. In financial terms, you do this by calculating your Net Worth. You do this by simply taking your assets and subtracting your liabilities.
Take some alone time or discuss this with your life partner and write it down. Don't over-complicate it and don't worry if it is very low or even negative. The point is that you need to know where you are before you can move forward.
Any questions or comments? Let us know
In our very first episode, we explain why we started the F word and what we want to achieve with this Podcast.
We speak about life growing up in our parents' home, our educational background, practical experience as well as our journey to where we are now, as Wealth managers and business owners.
At the end, we also discuss the much-debated myth of having to be 'Born with a Passion' and how one can rather develop your interest and become passionate in your chosen field.