Can you remember that margarine ad from around the time when low-fat eating was prescribed by American health authorities in? It’s the one that showed a happy family playing outside whilst the smiling mum made sandwiches using the said margarine. The tagline: She knows what’s best for her family. It’s a great example of the picture ...

This week I had a delightful catch-up with a long-standing client. He expressed his gratitude for our conversations at key junctions in his life.  He remarked that the questions asked helped him to stay the course with the result that he is now comfortably retired. Those are the moments that make my career meaningful. The ...

Markets raced off to a good start in 2021, building on from 2020.  The sustainability of the pace will, however, be determined by the continued global success of vaccination roll-outs. This quarter will be pivotal in determining whether we can achieve a Covid-free second half of 2021, at least in some parts of the world.   Vaccines ...

I’m helping my parents pack up their house, where they have lived for the last 25 years. Given that we were five siblings, there was always someone coming and going through the house – on the way back from overseas, on the way to emigrate or after the birth of a baby.  We find traces ...

It’s been a year since we entered that first three-week lockdown to flatten the curve. Almost exactly a year ago, I wrote a blog, “So really, how are you feeling right now? It was a blog about rest. If I’m honest with myself, I didn’t follow through on my own intentions. It’s a year later, and ...

Have you ever considered this question? What’s your money for? Why do you work long hours under stressful conditions? Why have some of us allowed ourselves to be reduced to an economically productive unit? Why do others fret about the insufficient returns on their investments? Beyond providing for our basic needs, every additional hour worked, every sleepless ...

If you haven’t heard these words from your financial advisor, then you should seriously question their expertise, integrity, judgement, or knowledge. Being an expert is what a financial advisor used to be – the kind of person who knew everything and could share their opinions confidently. But in truth, it has never been about that; even ...

The cover of the 2021 Gender Budget document of the Indian government, is a vivid painting of a woman at work in rural India – cleaning, cooking, milking the cow and shopping at the food vendor. The artist is a young boy who honoured his mother’s work with his picture, because his father allegedly said ...

Tomorrow our daughter turns 21. A largely symbolic milestone because she has been regarded as an adult by the law since 18.   But it is still a chance to celebrate (within the boundaries of COVID regulations of course),  and we need opportunities to celebrate. We need to grab them with both hands and nurture them. ...

There was one underlying golden thread that ran through most of 2021’s customary start-of-the-year investment roadshows. There were no bold proclamations; rather, the word optimism softly appeared in almost all presentations given by the most respected industry analysts. Optimism about improving global economic conditions, the resurgence of global industries decimated by Covid, the continued price ...

Disruption is here to stay. And the pandemic has just shown us how disruptive disruption can be. It has brought whole industries to a standstill, grounded aeroplanes, halted travel, left rental cars in parking lots, stopped conventions and elective medical procedures. Some of these industries may recover, but many will have changed dramatically. Secure jobs ...

I recently worked my way through a practical and funny guide to falling in love with your job again. The Joy of Work, 30 Ways to Fix Your Work Culture and Fall In Love With Your Job Again, by Bruce Daisley was published in 2019 and became a No 1 Sunday Times Business Bestseller. The ...

The story of the week must be the army of small investors taking on the Wall Street professionals, and they seem to be winning. This story is so big that the weekend edition of the Financial Times in the UK covered it in no fewer than five articles, including the front page and the editorial. ...

For as long as I can remember, my dad has been an early riser. Even now, long after his retirement, he still rises naturally every morning long before everyone else in the household. I remember him, in his tartan, woolly winter gown taking tea to my mum in bed or waking me up for last-minute ...

Happy 2021. Have you noticed how the customary wish at the start of a New Year has fizzled out this year? It is as if we lack the courage to wish people well when the first few weeks of the year have already been so difficult. 2021 seems to have punched us in the gut ...

-By Sunél Veldtman   Rest has been a foreign concept to Western society during the past century. Even the use of the word in the English language has shown a steady decline. Until 2020. This year, the word occurred more frequently than at any other time during the last century. I’m not surprised. It has been one of ...

I don’t know about you, but I am exhausted. It is always difficult towards the end of the year, to gather enough energy to complete everything on the to-do list. This year is even harder. I am bone-tired for all the reasons that made 2020 so tough. Uncertainty. Complexity. Anger. Compliance. Loneliness. Division. Financial pressure. Poverty. Hunger. Relationships breaking down. Anxiety. Sleeplessness. Countless additional decisions. I can go on. I ...

At the beginning of this year, I wrote about setting intentions for the year. My intention was to seek joy. Of course, I had no idea what was ahead for the world in 2020 but I wrote these words: ‘And to record the joy every day. I want to actively cultivate it, to look for ...

-By Elke Zeki   Humans like certainty.  In areas we know least, we are more intent on it.  We think in right or wrong, yes or no, black or white, despite the whole world being governed by probability.  It’s just easier this way.  It creates the certainty we crave.  It makes the unpredictable, predictable and by doing ...

During the past week media commentators jumped with joy when it became evident that a technical change to the definition of certain listed instruments, meant that one could now potentially invest up to 100% of one’s pension money offshore.  Given how poorly South African investments have performed relative to offshore investments over the last 5 ...

This week I received a newsletter from a market commentator who expressed surprise at the current levels of the Rand compared to the US Dollar. At R15.50/USD, the Rand was the best performing emerging market currency over the last month. According to the publication, the Rand is widely tipped to further advance in the months ...

In celebration of our wedding anniversary, we were fortunate to spend time at a reserve in the Kamdeboo near Graaff Reinet. Two decades ago, the land was eroded by overgrazing and most wildlife had disappeared from the famous Kamdeboo plains, where once herds of springbok kicked up dust clouds visible across the plains. Today, you ...

The end of democracy and capitalism is in sight. Should Donald Trump win the US election, the outcome is certain: a white supremacist apocalypse will follow. That’s how Biden supporters feel. On the other hand, The Financial Times quotes Mike Pence declaring, “with frosty certainty that in Biden’s America ‘you won’t be safe’… that the Trumpian ...

In 2020 many people have been faced with loss – financial loss, loss of health or even the loss of loved ones to the pandemic. It’s been that kind of year. Many of our clients faced loss – a few faced death. It has been a privilege to listen to their stories and to see ...

On my return from a few days off-grid, I was assaulted by reams of research on the possible impact of the American election on our future. How will a Biden administration impact global growth? Will a Trump win spur financial markets on? Speculation clothed as research or expert opinion claim to answer these questions. The truth ...

As we slowly emerge from lockdown, I wonder, what have we learnt? Are we taking a moment to let the enormity of what’s just happened to us, sink in? Are we taking stock of the impact it has had on our bodies, minds and souls? Or our money? Have we taken a moment to express ...

Next week, Piet and I will celebrate our thirtieth wedding anniversary. It is somewhat surreal, thinking that I have been married for thirty years.  It is difficult to believe that all that time has passed. It feels like our lives have come full circle – we started our married life in the City Bowl in Cape ...

-By Michelle le Roux   For a while now, we have been reading with great interest about how the government wants to be able to control how our retirement savings are invested. This is usually referred to by its short name, “prescribed assets”, and advocates on either side of the argument have been keeping us glued to ...

I’m a fan of French elegance. I am drawn to the simplicity and minimalism of their style – the blue blazer paired with a crisp white shirt never dates. It’s timeless. If you build up this type of French wardrobe, daily dressing becomes easy and effective. The same is true for a property of good ...

-By Sunél Veldtman & Michelle le Roux   If your future depends on it, you should know about it. The lockdown has probably challenged most marriages. Some have been broken. Divorce attorneys are already dealing with the fall out as they report up to a 20% rise in divorce applications. The current economic climate will make these divorce ...

Three stories were woven into one experience for me during the past week. A friend shared his dreams with me, daring dreams that may cost him a big chunk of his capital, perhaps most of it. He ended by saying that he’ll be happy to live a simple life if it all fails. He will be ...

When I was a young parent, my dad gave me a piece of parenting advice that probably changed the course of my life and saved me and my children from the trauma of helicopter parenting. It freed me to enjoy my children as unique humans. If I had to pay for that advice, I wonder what ...

I read historical romantic novels in old fashioned paper format before bedtime. Life is difficult enough, so what I read before falling asleep must help me escape and switch off from screens and the day’s challenges. However, historical novels are often more than an escape.  They can be useful. They can expose ways of living ...

From my office window I notice the dark oak branches sprouting delicate fresh leaves and the poplars’ twigs forming fat buds. The sun rises earlier and suddenly it feels lighter. The dark days of mid-winter and lockdown are behind us. Can you still remember what it felt like? How hopeless and dreary the future seemed in ...

When I searched my previous blogs, surprisingly, I found the word anxiety in only one previous blog. It is not a reflection of how I have felt or how most of our clients seem to feel. If you are like me, at some stage during this pandemic, you have probably felt anxious about the future, ...

What do you want? What will happen if you focus your money, time and energy on the thing(s) you want? It’s not complicated. It’s just very difficult. It’s difficult to choose what you want. It means saying no to a lot of other stuff. And then it’s difficult to apply focus and resources to that thing. Most people never ...

I dread women’s month because I become inundated with pink invitations to industry events on topics ranging from Botox, self-esteem improvement coupled with the money mistakes women make. What are we thinking? I would love to know if any of my male readers have ever been invited to a comparable financial industry event? The industry ...

Everyone knows. You should not put all your eggs in one basket. You should diversify so that your wealth is protected against the unforeseen. What does this mean? It means that the prospects of your investments should be linked to different factors. If all your investments do well at the same time, then it probably means that your ...

I believe in dreams. As a money expert, it is quite something to admit but my current reality exists because I dreamed: Foundation Family Wealth is the product of my dream to help people live their best life with their money; living in Cape Town is the result of my dream to live closer to ...

Just when we thought it could not get worse, it did. Now we have lockdown and load shedding, all without alcohol. Yes, the winter cold fronts have been welcome and there is the silver lining of nearly full dams (in the Cape), but the freezing cold in the dark has come at a dark time ...

I spent the first few years of my life on a small Karoo farm. There was freshly baked farm bread with homemade butter every day, milk from our own cows, meat from our livestock, vegetables from our own garden and eggs from our own animals. Writing this now, I realise that for the reader this ...

The return on an investment is determined by two factors – the prospects and the price you pay for those prospects. If you pay too much for the prospects, the total return on your investment can be as poor as an investment with poor prospects. Imagine there was an investment with great prospects, but you had ...

Last week, I took some time away from my blog space. I needed some time to process what has transpired since the outbreak of COVID-19. While away, I felt compelled to send this blog – a version of it was waiting in my outbox. The world has never been a more unequal place. South Africa specifically, ...

On the 13th of October 2000, I was standing at the end of a jetty on a lake high up in the Drakensberg selling my clients’ Dimension Data shares. I remember the day because it was my 10th wedding anniversary. My husband and I had gone to a remote guest house to celebrate – the jetty was the only ...

Emotion has such a bad reputation. The general belief is still that emotions should be ignored or repressed. Worse still, is the belief that emotions are signs of immaturity and should not come into play in decision making. Some emotions seem more acceptable, like happiness or surprise, whereas fear and sadness frequently leave us uncomfortable or are regarded as ...

Most of us know how to take care of our physical security. We put up burglar bars, fences and walls. We raise the walls and top them with electric fences.  We install alarm systems. We have panic buttons linked to armed response. We belong to village watch groups. We may even have permanent bodyguards. We ...

-By Elke Zeki Money is emotive.  The reason for this is because of what money represents in our lives. It represents status, power, opportunity and limitations.  For most, it represents a life they want to live.  So, when the market goes into the fastest decline in recorded history, it threatens our life goals (represented by money) and understandably amplifies emotions such ...

-By Sunél Veldtman & Michelle le Roux The Great Lockdown is likely to be the biggest disruptor of the upward personal and global trajectory since the Second World War. Most of us have had occasional setbacks but this upheaval will cause economic hardship for many people who have never had much reason to worry about money. There have already been ...

Correlation does not equal causation. Confusing the two is a basic error in critical thinking. For example, if there is a declining trend of COVID-19 infections in Italy at the same time that more people are wearing masks, it does not mean that the declining trend was caused by the mask-wearing. But let’s first backtrack to ...

This week, as I digested President Ramaphosa’s speech, I was struck by the enormity of what we are experiencing. Not for the first time, an acute anxiety about the outcome of the Great Lockdown overwhelmed me. The economic consequences will be extremely difficult to deal with. Maybe you haven’t felt anxiety. Perhaps you have felt powerless, ...

A blog by Carl Richards (they are the shortest, most impactful blogs on money and life that you do not want to miss) alerted me to the gap between facts and stories. And the potential impact of that gap. COVID-19 is a good example for illustrating this: the facts, the story and the gap.  Right now, there ...

Most of us toil, throughout our lives to convert human and physical capital into financial capital. We derive income from our human and physical capital, and then we save enough to fund our future income through our investments, culminating in retirement. During the COVID-19 pandemic, we have focussed on the demise of financial capital as a ...

Note: I wrote this blog some time ago and then Coronvirus happened and it seemed more appropriate to talk about that. I guess by now, you’re also weary and perhaps heartsore from all the Corona stories, so I’m sharing the story of our move to Cape Town with you.  Because despite what we are living now, life will go ...

As the lockdown continues, our realities diverge. Some are working hard to survive by revamping their business models or changing their products. Others are locked out of their shops and cannot do much about it. Others are trying to juggle home schooling kids and jobs. Others may already have lost their jobs or shut down their businesses. Some may ...

During my childhood, my grandmother lived with us from time to time. Her presence had a lasting impact on my childhood memories. I remember how she scraped the bowl clean when she was baking, how she saved the leftovers of lunch for dinner and how she cared for her clothes. She wore a dress to ...

COVID-19 puts a spotlight on the plight of millions of South Africans who are living in poverty. They don’t have access to decent healthcare and sanitation. They live in shacks. The lucky ones have jobs far from their homes. Even the lucky ones know hunger intimately. Unless our country tackles this problem with the urgency ...

When you read this, South Africa will be at the start of its lockdown, following our European and Asian friends who have been in lockdown for some time. We have been called to fight a war against an invisible and silent enemy, by staying home. And, even if we do not want to admit it, most of us are ...

The COVID-19 virus fall-out is a great example of the flaws in human thinking. For a complex problem – like, what is the most appropriate response by a country’s government to the spread of a deadly virus – you need complex thinking. However, most people rarely apply the rational, thinking part of their brains. Most human ...

The last week of February was one of the worst in the history of markets – global markets declined by more than 10% in USD.  Pervasive panic as a result of the spread of the COVID-19 virus from China to the rest of the world dominated the news and social media. The virus has already brought much of ...

What goes through a successful man’s mind when he pulls the trigger a day after his retirement? From the outside, he had it all: an illustrious career, a happy family, a big circle of friends and the trip of a lifetime planned.   But he harboured a secret. He never told his inner circle that he ...

Retiring is dangerous. Who would have thought?  While people may initially report improved health after retirement due to lower stress levels, studies show that the risk of death increases by as much 20%; and the risk of suffering from a heart attack or stroke increases by as much as 40% after retiring. It is not ...

You believe in yourself. You have done your homework. You go for it. Go big or go home, is what they say. After all, Warren Buffett said “diversification is protection against ignorance. It makes little sense if you know what you are doing.” You think it’s certain.  You are in control.  You are wrong. And so is Warren Buffett in ...

-By Michelle le Roux   The worst has happened. Perhaps it came unexpectedly, perhaps it’s been hovering for a while. The shock is the same…you’ve just lost a significant person in your life. Saying goodbye is traumatic. Apart from the emotional distress of the passing, there is the added anxiety of having to make funeral arrangements and handling personal ...

“How much offshore is enough? In this article, I’d like to share how we approach this pressing issue with our clients – an approach we have developed through our academic training combined with decades of experience in offshore investments.”

“At the beginning of every year, it is my custom to write a review concerning the last year in our business. I like to stand still and reflect on what has happened, but also on what we anticipate and want to happen.”

“As investors, we often try to limit the taxes paid and look for products and opportunities that are less tax intensive. Although this is a major part of investing, it is not the only thing to consider. “

When babies come into the world, they are naked, vulnerable, all wrinkly and truth be told, ugly. Similarly, people typically leave the world vulnerable, wrinkly and yes, ugly. In a lifetime, we gather our possessions, properties, bank accounts, investments and all sorts of other links to the world around us. When we die, we die ...

My eldest is learning to drive and I am becoming more conscious of my driving. Driving is one of those things that you do without consciously thinking about when to look in the rearview mirror. But I have now become aware of looking in the mirrors again. Although looking in all your mirrors is essential for safe driving, the most ...

Habits, scientists say, emerge because the brain is constantly looking for ways to save effort (Charles Duhigg, The Power of Habit).  They are the legs of resolutions and without them, resolutions typically fail. Research increasingly shows that they are worth pursuing (the good kind at least) and that it is even possible to change behaviour by making tiny changes to ...

We believe that our clients’ needs regarding financial markets have changed.  There is now so much credible information available about financial markets, that our time and energy needs to focus on where we can best add value within that context.  However, we are also aware that our clients would like to know what our informed review and analysis is ...

2020 is here. It has a good ring to it – a new year and a new decade. A blank page on which we can continue to write the story of our lives. If the 2010s didn’t work out well for you, here’s a new chance. A new chance for a new beginning. What will you do with it? I’m ...

When Apartheid was at its height, Johannes Kerkorrel created the protest song, Sit dit af, sit dit af! against State propaganda at the time. It’s been ringing in my ears for a long time. It’s how I feel about news these days. The news media has become an endless source of negative noise. Almost every time I tune in, I ...

This will be my last blog post for a month. Not only are we relocating to Cape Town from Johannesburg as you read this, but it is the holiday season for most South Africans. Many make the trek to their home towns, their families or their usual seaside resort. As we all do so, it might help to think ...

Last week, I wrote about uncovering the root of anxiety about money, which starts with awareness. But awareness is not enough. When we worry about money, we often have vague fears about the worst thing that can happen. What if a global recession wipes out half of my capital just before I retire? Experts will placate you and say that ...

You may be aware of the beliefs that you have consciously adopted or rejected but you may be completely unaware of the beliefs which drive your anxiety. What are your beliefs about money? How are your beliefs working for you and how are they affecting the most important relationships in your life?

Worth is not determined a number. Worth is permission, from yourself, to treat yourself with honour and to require that from others, regardless of any monetary number that can be attached to yourself.

Risk is something that can be measured, and we, regardless of understanding the measurements, use it to make investment decisions. The problem is, we think we are concerned about risk, but we are not. Humans are much more concerned about uncertainty!

Is it still worthwhile to invest in a retirement annuity, pension or provident fund with Prescribed Assets on the cards? Our numbers conclude that the tax benefit outweighs the negatives, even taking a big capital loss into account.

Celebration isn’t about our circumstances. We should celebrate the goodness of life while we have breath in our bodies, feet to dance, eyes to see beauty and arms to embrace our people. At the end of the year, take a moment to write down what you’re grateful for.

“Move the gin over this December and try a tequila and tonic! There are wonderful variations and food pairings you can play with.”

Have you changed your mind about your money or your life principles? Ever or recently? Hopefully, you have because it will indicate that you are open to learning. A learning mindset is essential for building wealth and for a meaningful life. There are several good reasons for changing your mind: new data or research emerges; tax ...

There has been a proliferation of financial news. You can drown in waves of it if you do not wear a life jacket. Most of it is badly written, poorly researched and aimed at selling you something…typically fear. We should know this by now. Fear sells. Most financial news is unhelpful to wealth creation because wealth creation requires optimism – optimism ...

In my work, when I hear the words intuition or gut, my radars switch on for what comes next. When someone says, ‘I just have a good gut feeling about this investment or my gut tells me that the currency will be at 20 by year-end’, I listen up. Gut feeling or intuition can mean many different ...

Have you ever paid attention to how you decide? What is your process when you make an important life decision and what information do you consider? Do you process data, or do you just go with your gut? What happens when you must decide as a team or a family or a couple? This year our ...

The third quarter of 2019 saw markets give up some of the gains made in the first half of the year. Oil jumped and retreated after an attack on a Saudi Arabian oil plant. Global markets are not sure what to make of the tit-for-tat trade war between the US and China. Locally, we ...

This year an already depressed sentiment about the prospects of our country plunged to new depths. For some, anything from a potential IMF bailout to the NHI or the credit downgrade have been rational reasons for negativity. They are indeed reasons for concern, but it doesn’t necessitate that every real and social media conversation dive ...

The Camino de Santiago was not on my bucket list. It never occurred to me that I might want to do it until earlier this year when I mentioned to a friend that I wanted to take some time out and she said, “You should do the Camino.” The Camino de Santiago is a network ...

At the end of last year, after seven years of building Foundation Family Wealth, I was exhausted. I felt that 2019 had to be a year of rejuvenation.  I wanted to learn new skills, expose myself to new ideas and renew my life and business vision. I also wanted to take some time off.    We ...

If you cannot stomach the loss or simply cannot afford the thing you want to do next because you bargained on obtaining the higher price, you must wait; but you may have to make peace with the fact that you will wait a long time. Or forever.

As an adviser, I am frequently asked about the investment merits of lifestyle assets such as holiday homes, art, yachts or vintage cars. In South Africa, holiday homes are popular and a signal for some, of status and wealth. I married into a family with a holiday cottage at the coast and have been going there for thirty years. That ...

That’s the ratio of people living below the national poverty line of R992 per month in South Africa. That’s 30-million people. I knew that it was bad. But that number hit me between the eyes again. These are the homeless and the unemployed. It excludes our domestic Mercy who worked 6 days a week at the local ...

What are the disruptive forces at play in the world? The world as we know it, no longer exists.

How can we respond to disruption to protect our capital? How to protect your capital against Trump, trade wars or climate change chaos?

‘The first wealth is health,’ is a popular quote by Ralph Waldo Emerson. Whilst we are working, we need health in order to earn, so that we can build capital. We are converting human capital into financial capital. Without health, it is difficult to build capital.

Where I grew up in the Karoo everything was scarce. Water was always scarce. If the wind didn’t blow, we couldn’t even get water from the boreholes. I learnt to bath in a few centimetres of water only when the water tank was full. I learnt to keep the dishwater standing just in case ...

I have repeatedly seen how the angst literally dissolves away from clients when we show them the concrete steps they can take to make a comfortable retirement a possibility or better yet, that their retirement capital is already enough. By focusing on what they can control, instead of a distant disaster, they can control their ...

Last year when I mentioned in a speech that the world has never had it so good, people asked me afterwards whether I was trying to be funny. I don’t do funny well. My family are forever telling me that I should lighten up. The thing is, compared to the rest of history – the average ...

The year is speeding ahead. We pile on the busyness as our annual holidays become distant memories. But where does this busyness get us? What exactly are we trying to achieve? Are we trying to earn more money so that we can be happier? Add more achievements to our CVs? Boost our egos with a ...

South Africa participated in the global equities rally as the United States confirmed that there will be no more interest rate hikes in 2019. Equity markets around the globe cheered the news with double digit growth achieved in most emerging market countries for 2019. Uncertainty has become a part of our everyday lives with the developed ...

“Small choices are the difference between health and sickness, loneliness or friendship, financial freedom or distress.”

As a wealth strategist, the space I occupy is a junction between the hard currency of how money structures clients’ lives and the softer side of listening to clients’ dreams, goals, concerns and hopes for their lives. I have many observations about this space. One of the most notable being how the contact point between money ...

2018 was a difficult year, one of the most difficult of my career. An overriding pessimism enveloped us: Trump was fighting with China over trade, Brexit turned out to a big mess, Europe stood, once again, on the precipice of a recession, the currency declined, South Africans learnt more about the extent of our leader’s corruption and financial markets tanked. ...

“Life will always be uncertain and at some point, you will undoubtedly face hardship. Yet some people manage to deal with adversity much better than others. Some people manage to transform that adversity into success. In talking to clients and people, I have been struck by recurring themes within their stories that have helped them ...

“We strongly believe in creating Wealth for Life. But, to do the things you want to do during your lifetime you need to have the capacity to do so. Therefore, we believe you need to control your needs and wants and save the rest in order to truly tick the wishes off your bucket list.”

“Retrenchment is an unfortunate event that can cause a lot of uncertainty and anxiety. With it come many financial and retirement implications.”

“The biggest risks you face on being retrenched are the short-term survival considerations. What do you need to do to get through the next year? What are the biggest pressure points?”

Recoveries, Buybacks and Politics The start of 2019 has seen most investors relieved by the recovery experienced on all fronts following a tough end to 2018. Markets bounced back sharply erasing most of the losses incurred in the fourth quarter. For investors that stayed the course the effects of 2018 are now negligible.  For those that jumped ...

2018 was a tough year 2018 was one of the toughest years of my career. Not only did we see a decline in global share markets, but safe asset classes did not help portfolios either. Most asset classes declined in unison. But that wasn’t the difficult part – volatility is normal in markets. For our clients, ...

2017 was a dark time for South Africans. We were on the verge of being downgraded to junk status and it was impossible to see our way out of the mess Zuma had left us in. More than a year later, it seems we have made a lot of progress.

“Qualifications and great track-records go a long way, but what happens behind the scenes – in the mind of the advisor? Specifically, how do we at Foundation Family Wealth make our decisions and how do we decide on what the best advice is?”

“Aren’t we glad that 2018 is behind us? That said – we’re all asking if there’s light at the end of the tunnel or if that’s actually a train approaching?”

“Something had to change, and we are very much still changing the way we live. I guess you could call it a journey to conscious living.” Sunél Veldtman takes a look at the 4 best gifts you can give yourself.

“None of us want to go on holiday and constantly think about money. We don’t want to stay home and miss out on fun activities either.” Our fifth article focuses on managing your finances over the holiday period.

“Why is it that the world and South Africans are not willing to pay more for their favourite bottle of Cab Sav?”

“In my three decades of working in investments, I have rarely seen investor confidence as low and pessimism reign as we are seeing now. I suspect that many of our readers are questioning their financial planning strategies. We have identified three critical questions for making drastic changes to your strategy and even your advisor.”

“With the end of the year in sight, it may be a good time to get the administration in order for your tax clearance certificate…”

“This month we’re focusing on marriages outside of community of property, with the inclusion of the accrual system. This seems simple on paper, but can get technical and confusing.”

“The third quarter of 2018 was a tough one for emerging market economies. South Africa fell into a technical recession as economic growth contracted for the whole of 2018.”

“Planning for retirement can be challenging as there are many unknowns and uncertainties that you need to consider. There are a few financial risks that can have a significant impact on your capital and your ability to draw income comfortably for the rest of your life.”

“Treasury partially accepted the submission and the bill has been withdrawn. Government and industry has been given more time to find a solution that may have less of a negative impact on unit holders. These amendments will be considered in the 2019 legislative cycle.”

“Our fourth article focuses on buying a car. This topic is close to my heart as I believe this is the single biggest reason people are indebted for life with no material investments later in life.”

“We should refrain from getting too negative. This can become a self-fulfilling prophecy. South Africa is not like Zimbabwe. We have an active civil society, free media and a world-class judiciary.”

“Treasury recently published a draft Taxation Laws Amendment Bill, suggesting changes to the income tax treatment of disposal of assets within a collective investment scheme (CIS) or unit trust fund.”

“Understand that there are various types of debt, some good and some bad. Applying for a bond to purchase a house can be considered good debt. Applying for a credit card because “there are just too many days in this month” – not good debt.”

“…as South Africans emigrate and move to all corners of the world, it’s becoming increasingly important to understand our Excon-legislation for estate planning purposes, and whether a bequest will be subject to exchange control.”

Sometimes a will doesn’t blatantly contradict our law or good morals, but is still problematic for the testator’s survivors. We are taking a closer look at the Maintenance of Surviving Spouses Act.

Words Worth Reading, July 2018.

What makes for a successful retirement? Why do some people thrive through this transition and others falter? What do you need to retire successfully?

Quaterly market review, Q2 of 2018.

-By Sunél Veldtman I have been pondering what to write ahead of Women’s month. Today we welcomed a niece into the world and little Julia gave me a good reason to write about all the things I want her to know about money (and a little about life). She is too young now, but one day, ...

Words Worth Reading, June 2018.

Property has long been considered a safe investment. There is even a Victorian saying about it: “Safe as houses,” supposedly meaning secure, with no risk of failure. In a continuation of his series for millenials, Thiart van der Merwe examines the relative attractiveness of investment properties.

“In this series of articles, we’re giving you the advice you need on how to set yourself up for financial freedom. Our aim is to give you practical steps each month – action points that you can take immediately. “

“…of all the different aspects of our lives and estate planning, anything that relates to our minor children demands particular care. Be very clear with your bequests in your will.”

Words worth Reading, May 2018.

We’ve had a few questions from clients on section 12J investments and whether it’s something that should be considered. Some advisors and tax consultants seem to be selling this as the next best thing.

-By Sunél Veldtman If you don’t understand the money world, it’s not your fault – they aren’t speaking your language. There is a vast difference between the way men relate to the world of money and the way women relate to this world. This is no surprise considering that men have dominated this industry for the past ...

This month in Words Worth Reading, we highlight an article by The Economist on women and wealth. “Investment by women, and in them, is growing” and much of the wealth transferred in the coming decades will end up in female hands. Read more here. We include a thought-provoking article by Nicola Aylward about mindfullness, seasons and cycles. ...

“For those with massive estates, the implications of not having a will can be disastrous. But even the poorest of poor own a trinket or two, so let’s take a look at how an estate is dissolved without a will.”

“With all the political noise detracting from economic fundamentals, it is easy to think we are in a downward spiral. Compared to mid-December 2017, we believe we are on the right track building South Africa up to where it should be”

“Sticking to the formalities doesn’t automatically mean that your will is valid. In addition, you must also comply with common law and the stipulations of your will must be practically enforceable. But first let’s make a giant stride to understand a few definitions and get the basics right.”

“Very few investors have the time, knowledge or skill to invest their own money. To suggest that investors can merely go straight to a passive product provider, select the correct product for their needs and live happily ever after, is ignoring reality. Even when investors have the skill, they most often lack time.”

Words Worth Reading, March 2018.

This month, in Words Worth Reading, we include an article about the decision for early retirement from the New York Times. Early retirement is not just about having enough money. It is about what you will do with your time.

Deciding when and how to retire from your retirement products can be complicated. It should not necessarily determine when and how you retire.

This month we are recapping what we know about the different types of marriages and marital regimes in our country. It’s first and foremost important to understand the legal definition of a spouse, because it has various legal implications – in particular on an individual’s estate.

-By Sunél Veldtman In our Encore years – the new term used for those in later life, which is anyone after fifty and now includes me – we are faced with new challenges. For the corporate professional it could be looming forced-retirement or even unexpected retrenchment. For the entrepreneur, it could be the sale of your business ...

-By Elke Zeki Over the years we’ve often come across the same issues affecting retirement when dealing with new clients.  These common mistakes are not always obvious.  Unless you run the numbers and do proper cash flow analysis, it’s not easy to see how your choices will impact your retirement. We hope that these practical examples of ...

As the ageing population is growing, innovative ways of retiring and living is being invented. In words worth reading, we include an article on a new model of aging in your own home. Read the article here.

-By Thiart van der Merwe As we ended off 2017, the headlines were dominated by the ANC leadership race. It came down to two candidates who represented different factions within the ANC. In the end Ramaphosa edged out a marginal victory over Dlamini-Zuma. The Rand subsequently strengthened by more than 11% as investors welcomed a business-friendly ...

-By Thiart van Der Merwe A prolonged, low-growth environment and no real returns from our market were the main talking points as we entered 2017. With constant negative press on corruption and a deteriorating political landscape, one can understand the inclination to be pessimistic. Up to the midway point the pessimists were right. The stock market surprised ...

-By Elke Zeki & Sunél Veldtman There is too much unwanted stuff on the planet. Too much stuff polluting our oceans, our soil, our water and the air. Christmas is ahead of us and many are thinking about gifts for our family and friends. Many will mindlessly buy another pair of unwanted socks wrapped in pretty ...

The Secrets of Sleep Sleep is becoming fashionable again. And so it should be. It is vital to our wellbeing. “Sleep, according to the Sunday Style section of The Times, is a new status symbol, a sign of prosperity and control in a frenetic world.” This from an article from The New Yorker, The Secrets of Sleep. Read ...

– By Sunel Veldtman A while ago I mentioned to my husband that I didn’t like the taste of lamb cooked on our gas braai. I prefer the smoky flavour of lamb done on a real wood fire. And so, the ‘kruiwa’ was born. (Kruiwa is the Afrikaans word for wheelbarrow.) He pulled out an old ...

-By Sunel Veldtman New Years’ resolutions are so tiring. Few people stick to them. Loose weight. Spend less. Be more organised. And then we carry on after a few days or weeks just as we did before. Better budgeting is high on the list of new years resolutions. Prioritising and limiting spending is key to financial freedom ...

Productivity Is Really About What You Don’t Do “The best productivity tip I ever got was the idea of a “stop-doing list” from Jim Collins. In this Age of Distraction, we’re all dodging and weaving between so much incoming information that what you don’t do on a daily basis has become as important—if not more—as what you do execute on.” Here’s ...

This month we enjoyed these articles. Happiness is Other People The happiness industry has been teaching us that we should cultivate happiness by ourselves through self-reflection and self-actualisation. It has left our generation lonely, sick and anxious. It turns out that research is clear – the single biggest contributor to our happiness is spending time with other ...

-By Elke Zeki Many people believe that financial advisors add significant value by fund & product choice, asset allocation and budgeting. What concerns us is that research shows (and has for a long time) that there are algorithms that can do this much better than any human being can. Yet advisors are slow to embrace this ...

-By Elke Zeki Planning for retirement is one of the most interesting aspects of financial planning. Despite our vastly different circumstances and financial situations, we generally have the same underlying goal: to retire happily and in good health. The desire for happiness and health is not just exclusive to retirees though. In our later years these things ...

By Thiart van Der Merwe Quarter 3 Review There’s been a rally in SA equities in the last quarter. Some sectors have done really well. If we compare the returns to the rest of the world however, we are lagging. Why? Own goals on the political front. Against our Emerging Market peers, we have underperformed by more ...

– By Thiart van der Merwe  Bitcoin and cryptocurrencies are a hot topic at the moment. Everyone wants to know whether they should invest in Bitcoin. It is not surprising given that $100 invested 18 months ago, would be worth $1000 now. This kind of growth attracts attention. What is Bitcoin and what is the fuss ...

Why Your Morning Ritual Is So Important To Your Success “There is a reason that most successful people have routines. It’s not because they’re OCD or eccentric. Successful people develop routines for a simple reason: they want to reduce friction in their lives so they can focus on what they do best. As you become successful, whether ...

– by Michelle le Roux It’s fun to be young and have big dreams. We leave school and the security of living under dad’s roof; we start working and have a lifetime of salaries and bonuses ahead of us. Retirement is far into the future – after all 40 years is a long way away. But ...

– Sunel Veldtman Recently, I have noticed how many conversations about the world lead to a conclusion that the world is a mess. We seem anxious and insecure about the future. If I look at my social media feed, it is no wonder. Bad news abounds. Korea is angling for war. Trump plans to block immigration. ...

By Elke Zeki I’m a bit of a wine snob so I almost had heart failure the first time I saw a couple putting ice in their champagne! I thought I knew about wine trends, but watching this pair pour a R700 bottle of Moet Chandon over a large pile of ice was just too much ...

By Sunel Veldtman Almost one out of three women believe that men are better at handling financial matters than women are. This is according to The Old Mutual Savings Monitor (2012) – one of the few surveys that have studied the attitudes of South African women towards money. Even worse though, is that 65% of men ...

By Elke Zeki I heard a great analogy the other day from world-renowned researcher and storyteller, Brene Brown. She explained how often Thought and Behaviour sit in the back while Emotion drives the car. There are few things in life that stir up emotion the way money does. Even experienced investors are at risk of letting ...

“Can fairness really exist for women in the workplace?” – Business Day A brilliant read by Prof Anita Bosch – a registered master HR practitioner and associate professor at the University of Stellenbosch Business School (USB) where she researches women at work. She also teaches in the human capital management and leadership tracks of the USB ...

Sometimes The Best Thing You Can Do For Yourself Is Nothing  The brilliant author, coach and mentor Judy Klipin writes about taking time-out, to take stock.   “Next time you are feeling over-worked, over-committed and overwhelmed, take some time to stop. To breathe. To come back to yourself.” Read more here.

-By Sunél Veldtman Our first Encore workshop was a huge success given the positive response from attendees. We covered all aspects about planning for the second half of life, including emotional well-being, purpose and health and we took a thorough journey through the financial preparation for retirement. We hope that the workshop contributed to new plans and ...

By Thiart van der Merwe A captured state exposed by a trail of emails in the hundreds of thousands. The #GuptaLeaks made headlines almost every day in major newspapers throughout the quarter. Shocking revelations of kickbacks received to Gupta-linked companies and generous gifts and holidays paid for to secure more lucrative deals just highlighted the corrupt ...

By Elke Zeki This month we launched our Encore workshop, specifically aimed at people approaching retirement and the challenges the “New Old” face today.   There is a distinct phase of life (we argue between 55-70) where many of the old are still young. They are active, relatively healthy, want to work (although flexibly) and spend money. ...

By Sunel Veldtman Many years ago, I read the book ‘A Year in Provence’ by Peter Mayle. It kick-started my love affair with the ‘let’s go live somewhere else’ idea but it also watered a small seed within me. I guess that seed has been there all along: from my early childhood on a Karoo farm ...

This month, we feature an article by our friends Dave Park and Anne Livingstone. They are enthusiastic travelers who blog about their many adventures on ‘My Very Long Weekend, Every day is Saturday’. The title alone gives away the high value they put on travel, brought about by financial freedom. We include one of their ...

By Elke Zeki Financial planning is not an exact science, nor is it about getting everything right. It is about creating a plan that accounts for uncertainty and allows you to adjust quickly and easily. One such area of uncertainly, especially when planning for retirement, is expected returns. When doing a cash flow analysis, we always assume ...

-By Erol Zeki Beyond The River is a beautiful, true-life South African film that opened in cinemas a few weeks ago. Inspired by the story of two men from vastly different backgrounds – Piers Cruikshanks and Siseko Ntondini – and their determination to win a gold medal at the one of the contintents toughest canoe races ...

By Johann Coetzee Wednesday arrived with the promise of late afternoon rains, a hint of early morning sunshine and some cumulous clouds already building up from the east. I lingered for a while in bed, contemplating the beauty of this day and the consistency of creation. This also happened to be the last day of my official ...

YOU ARE INVITED TO ENCORE! If you’re thinking about slowing down, exiting corporate life or retiring, this workshop is for you! This is the new retirement and we’ve called these years – “The Encore Years” because they start long before you finally take your bow. The traditional picture of retirement looked like golf days, beaches and books, ...

– By Mareo Bekker Sunél asked me to jot down a few thoughts on how I understand and experience “semi-retirement”. Before I address the subject, I have to provide some background and context to my story. After starting my working career, my wife Lizel and I were blessed with four sons. It changed the dynamics of our ...

Retirees Are Too Pessimistic on Their Investments – And It’s Costing Them … “Adults in retirement are less optimistic than younger groups about future economic growth, stock-market returns and long-term personal financial well-being, new research shows. This may lead them to shift out of stocks too soon and cut spending more than needed, shortchanging their lifestyle and ...

-By Elke Zeki This debate is on-going and some are very passionate about it. In the South African market, quality active managers have been relatively successful in outperforming equity benchmarks over the long-term. However, recent low returns from the market (and active managers) has brought a renewed interest in passive solutions from investors. Why is this, ...

We recently had the privilege of touring Mabuasehube in Botswana and the Kgalagadi Transfrontier Park. We were aware that it had rained up to 300mm in the area since January. But nothing could’ve prepare us for the spectacle that awaited us: millions of butterflies, metre tall grasslands, pans filled with water and beautiful clouds everywhere. ...

Words Worth Reading, April 2017.

A quarter marred by political instability: First Quarter 2017 Review.

In a cabinet reshuffle that has been on the cards for some time, Zuma has finally pulled the trigger on Finance Minister, Pravin Gordhan and his deputy Mcebisi Jonas. He also changed 18 other positions. Late Thursday night the finance minister was replaced with Home Affairs minister, Melusi Gigaba. The Rand has plunged 7.5% since ...

– By Sunel Veldtman Foundation celebrated our fifth anniversary last month. It feels like just the other day when I walked into our office with my laptop and a bag full of hope. Foundation Family Wealth has been a dream unfolding for me. In the years leading to my departure from corporate life, I started seeing that ...

Losing a spouse is always traumatic. What can add to the distress even more is the tying up of financial loose ends – especially if the deceased was the one who always handed those affairs.

This month, both articles in the Words Worth Reading section of our newsletter come from the inspiring thought-leaders at Tomorrow Today Global. The first is an incredible article by Keith Coats following a series of recent workshops he ran with business execs in the UK. The workshops were entitled – “Leading in a changing world”. Keith ...

A few interesting articles that we have come across this month.

axes for the wealthy have been rising steadily in recent budgets. This year was no different. The budget had one overriding theme – make the wealthy pay. The top tax rate is now 45% for those earning above R1.5million and for trusts. In addition, dividend tax increased to 20% from 15% with immediate effect.

Too many times I’ve sat across the table from a sobbing woman going through divorce. Divorce is always heart breaking – but divorce involving a woman who has sacrificed her career, her financial power and sometimes her identity is particularly traumatic.

-By Sunél Veldtman Some thoughts for those of us in the later stage(s) of our career Watching Federer and Nadal battle it out for the Australian Open Title, I marvelled at both men’s endurance. I have to confess, I am a Federer fan. There he is, late in his career, in better shape than ever and at ...

This can be one of the best financial decisions you make. Make the time, it will be worth it.

“There are decades where nothing happens, and then there are weeks where decades happen.” Vladimir Lenin.

The CERTIFIED FINANCIAL PLANNER®/CFP® certification is the premier financial planning accreditation in the world and is recognised in 26 different countries.

Words Worth Reading, January 2017

What Brexit & Trump and all that erroneous forecasting teaches us about investments and financial advice…

As South Africans we tend to look at our glass half empty. We over-exaggerate the bad stuff and gloss over the good. In light of this, we decided to look at seven reasons why we are in a better place as a country than we’ve ever been. So pour yourself a glass half full (at least) ...

In true Foundation Family Wealth tradition Elke Zeki writes about the wines you need to try this December. Her inspiration? 2016 at a glance.

This article looks at the simple things we can do with our time and money to make us happier. Why happy? Well, we’ve lost the art of happiness. The research on happiness is unambiguous about the basics. They say: plan for these five things and you’ll be happier. Yet few people get these basics right.

Words Worth Reading, December 2016.

A brilliant read by Carl Richards from The Behavior Gap… Uncertainty Scares Us, But You Can Do Something About It Can I be honest with you for a minute? I’ve struggled to write my column this week. Given what happened in the presidential election and the response I’ve heard and seen around the world, I have no idea ...

I have never really been gripped by fear. Until recently. Donald Trump and Brexit; the potential of Marie le Pen; and the rise of the right and the step backwards of Putin has gripped my heart with fear. Locally, there is much to be fearful about.

We haven’t paid much attention to US elections in the past…Democrats, Republicans, Bush, Clinton or Obama – there has been a broad acceptance of neo-liberal capitalist policies supported by globalisation. Yesterday, that changed.

For many, investing can be intimidating. We tend to seek out people with more knowledge than we have, to sort out our finances and invest on our behalf. This is perfectly acceptable. But, why is it that people do not know what they pay for this investment advice?

This quarter we faced unanswered questions on Brexit, entered a new era of politics in the USA, and changed guard at local, municipal level.

Words worth reading, October 2016.

Despite years of unprecedented stimulus from authorities all over the world, the global economy is sluggish. Global growth expectations are continually adjusted downwards and are still well below long-term averages. This year the World Bank adjusted its global growth forecast downwards to 2,4% from 2,9% in January. So, what’s happening with economic growth and why is ...

The taxation of trusts has been a grey area for some time. The proposed changes in legislation was published for comment recently.

Our Wealth Analyst Thiart van der Merwe writes the first article in our series on general financial planning for yuppies. Thiart is passionate about the everyday decisions we make, and how these affect our futures much more than our investment returns.

Words worth reading, September 2016.

“Every once in a while, the market does something so stupid it takes your breath away.” This famous saying by Jim Cramer pretty much sums up the second quarter of 2016, more specifically the last week of June.

There’s much talk about jobs like financial planning and wealth management becoming careers of the past. Futurists like Graeme Condrington are even suggesting that by 2025, these jobs, as we know them will be gone. Replaced by algorithms.

We’ve found these articles fascinating. From a well-diversified portfolio, to growing old happy, and life in an accelerated age. Let us know what you think of these?

While it is always difficult to predict where we were heading at the beginning of 2016, we could feel a bit more optimistic than we were at the start of the year. The constitution held up and a big victory for our democracy as the message was clear, no one is above the law in ...

Since April 2013 most listed property companies converted to internationally recognised REIT structures from property loan stocks and unit trusts. This move brought South African listed property companies in line with global standards which also offered certain tax benefits to the structures. How does this affect the shareholder? Historically income distributions from property shares were primarily declared ...

Minister Pravin Gordhan managed to keep most parties happy with a sound budget that contained fiscal consolidation targets and suggested commitment to growth. While it is a step in the right direction, South Africa still faces a likely downgrade by a least one of the rating agencies by December. Treasury has opted not to increase top ...

An annual review of one’s life is such a healthy practise. Looking back gives you a sense of achievement and taking stock highlight growth areas and new goals. On a personal finance level, an annual review of your balance sheet is also a good practise. Have you made progress in your net asset value over the ...

PortfolioMetrix’s Brandon Zietsman wrote an interesting piece on the possible shift of power away from America to the likes of China, and whether you should look at size in isolation or is there more to a power shift than just the production numbers of a country. An interesting read. American exceptionalism has defined the way Americans ...

2015 was a tough year for markets around the world. The Rand crumbled to an all-time low. The currency lost 35% during the year and as at 31 December one dollar could get you R15.58 (compared to R11.56 at the beginning of the year). The only upside of this was that global investments held in dollars ...

I always plan my next holiday as soon as I get back from one. It takes a few days to ease back into a daily routine once I’ve become accustomed to late lunches and afternoon naps. So here I am, like every year, back from December holiday checking out all the public holidays, flight specials ...

Earlier this month, the Taxation Laws Amendment Act was passed in parliament. The Act included significant retirement reforms. Although these reforms follow years of negotiations, it has still been met with resistance especially by labour unions. What do these reforms mean for high net worth individuals and families? We believe these changes go some way to simplify ...

As the tax season is upon us and we see an increasing amount of assets being bought offshore we want to shed some light on the Capital Gains Tax implications of these assets.

Ahead of the festive season, we have put together a few ideas for different drinks, either as gifts or to enjoy at sunset. These refreshingly different drinks are all locally produced. Craft Beer There has been a huge revolution of craft beer in South Africa over the past few years. Many restaurants and bottle stores now offer ...

It is the time of year for reflection and resolutions. As we head for the annual summer holidays or enjoy an opportunity to slow down a bit, there is time to think. We review the past year and think ahead. We think about what we can do differently for a happier life. Is that not what ...

The third quarter of 2015 presented challenging market conditions. Global equity markets declined by 11% measured in US Dollars. According to the MSCI Index this is the worst performance since the third quarter in 2011, when markets declined by over 20%. South African equities declined by 2% in local currency terms but by 17% in ...