Emil on Monday

Welcome to Emil on Monday, a short Money Tips Newsletter.

Advice Notes:

Are You Willing to Lose R5,319,994.71?

It’s no secret that taxes are silent wealth-killers, preventing people from easily achieving their financial goals. That’s why we urge our clients to invest using tax-deferred vehicles as often as possible.

To truly appreciate just how much taxes eat into your ability to generate significant wealth, look at the chart below.

If you double a one sent every day for 30 days, you wind up with a staggering R5,368,709.12. But you won’t believe how much you’d have if you paid 28% in income taxes every day that one sent doubles. You’d have a measly R48,714.41. I kid you not. Thus, it’s clear that tax-deferred retirement accounts can add a lot of money to your long-term wealth.

And don’t worry about the taxes due on your R5.3 million. Even if your now-huge net worth pushed you into the top estate tax bracket, you’ll still have more than R3.6 million left over after taxes — a lot more than the R48,000 you’d have by paying taxes each day on the pay-as-you-go system. Please phone me on 083 562 4858 to help you with your retirement planning…

I got such a lot of feedback and inquiries on Dealing With the Financial Impact of Divorce that I feel the article should be revisited. Read it again here…

Are you busy getting divorced now? Contact me on 083 562 4858 to help with your asset planning. Or click here…

Click here to get your free copy of the Financial Planning Guide(PDF)

Special Announcement: Consolidate your debt to your home loan @ prime less 2,45% Click here for more info or call 083 562 4858.

Money tip nr 30:

Always check that an investment product and/or company are registered with the Financial Services Board (FSB) before investing. If it is not registered and things go wrong, you will have little recourse, so be extremely wary. You can telephone the FSB on 0800 110 443 or 0800 202 087 to check.

Charges on life assurance investments (endowments) are proportionally higher on lower amounts. Check the structure of costs in relation to premiums. You might find that paying just a few rand more every month costs you proportionally less. This will give you a better return.

Are you in need of financial planning? I offer fee based financial planning and you do not need to purchase a product.
Click here to inquire…

Investment tip nr 11:

Avoid investing in unlisted companies. These companies are not properly regulated and are the favourite vehicle of scam artists. If you decide to invest in an unlisted company, make sure you do your homework first and understand all the risks.

Never invest in anything where the underlying investments are shrouded in secrecy. Your money is likely to be secreted away too, never to be seen again. A good example was Jack Milne’s PSC Guaranteed Growth investment scam. Milne refused to divulge the underlying investments, claiming it would show his competitors how he was getting exceptional returns.

Commercial Property is the next BOOM!! To find out more about commercial property syndication and the benefits to you click here…

Quote of the week:

First ask yourself: What is the worst that can happen? Then prepare to accept it. Then proceed to improve on the worst. Dale Carnegie

Have a fantastic week
Emil Trautman
083 562 4858