As we mentioned at the top of the show, today’s episode was made possible by a new financial education initiative by Momentum-Metropolitan. You can play the FinEazy game here and register for the story-driven educational programme called FunDza here.
This is the 200th time Simon Chuckles Brown and I sit down to record a Fat Wallet Show (more or less). Every episode is a privilege because every episode is made possible by your engagement and contributions. We are eternally grateful for the support, encouragement and enthusiasm you have for this work.
As of 13 May 2020, you have contributed to 542,433 hours of listening time. 365 of you have emailed ask@justonelap.com. This excludes mails sent to us directly and questions submitted via social channels.
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The bleeped show is below:
The shows that have helped you the most are:
- #46: Five concepts that will make you rich
- FIRE at any age (#156)
- How to set portfolio up for financial freedom (#144)
- #58: How to structure your pay cheque
- Keeping your living expenses low (#166)
Based on the Fat Wallet Survey we conducted last year, you guys moved between R78m and R400m between providers as a result of the information you received in this show.
What I’ve learned in 200 episodes is that we help most by helping you think through your decisions.
Here’s to the next 200!
Garth Chad Sparkle
Is there a Cheat Sheet when working for a bank?
I don’t think I’ve been fully exploiting all the benefits, if any, that I have working for an FSP.
The more I think about it the more I get excited at the fact that there is a way to game the system and set myself up financially whilst working here.
What did Simon do to take advantage of the benefits? How wise is it to buy a house and car whilst working here to take advantage of the staff rates?
Surely by using the benefits at my disposal as an employee and diligently managing my finances I should come out the better when all is said and done?
Taahir wants to invest in a Shariah-compliant ETF.
Nihaad:
I’m a medical doctor working in an emergency centre during these pandemic times. These last few weeks, and all the uncertainty associated with the lockdown and our futures, have made me really think about getting my financial state in order.
I know very little about finances but I am trying to learn through your show. I am looking into investing, but as I am muslim, I would like more information on Shari’ah compliant ETFs available to South Africans as these are technically the only ETFs I am allowed to invest in due to my religion.
These ETFs do not include equities that are linked to banking, alcohol, or gambling, to name a few, and I am sure that affects the performance of these types of ETFs compared to its top 40 or global counterparts. Would you be able to chat a bit about these types of ETFs, which ones you’d recommend, how they perform in the market and how to maximize my returns on these types of investments? Thank you for your knowledge and help, I really look forward to your show every week!
Joy
I was listening to your #159 podcast.
Simon said you should never invest into a single asset or share beyond 5% of your portfolio. He said when one thing starts growing too much he sells down to below the 5%.
I understand that this is to minimize risk of being heavily invested in just one thing. I looked at my portfolio. I’ve got a house-sized question sitting right there. I do consider my home an investment and part of my portfolio.
It has gone up nicely in value following much elbow grease and fixing up… but… sadly… according to 5% portfolio risk rules… not only is a home 100% in the one asset class (property), it is also 100% in one property micro market (my suburb) and worse still 100% in only one property (my home).
Surely that means (unless your investment portfolio is cruising around R50 mill) buying your own property as an investment just blows all sensible, unbiased, risk management thinking out the window? What’s the alternative? A person has to live somewhere.
Pamela
There is a lot of pressure in buying a house and paying off the bond, but I am honestly not very sold on the idea. It sounds like it will be more expensive for me and is the housing market as lucrative as it was some 20 years back?
- Is buying a property worth it for me and paying off the bond?
- Would it be better to invest money in funds that take advantage of compound interest?
- What other investment vehicles can l use that will be beneficial in the long run? I am single and do not have any kids. l’d like to make great financial decisions now and set the foundation for when I have a family.
- I have tried to really reduce my expenses and it’s still work in progress to get to only the basics. My car is probably my worst purchase, I did not need it and now I have to pay it off. Other than that I have refrained from making any other large purchases.
Do you have any advice on how I can reduce my expenses, or something I can incorporate to reduce my expenses even further?
Listen to our homeownership podcast and the follow-up.
Rudi
The premise of the product is for every transaction on your account they take “the change,” rounding up to the nearest R10 and invest it in a Liberty Top 40 ETF, which I can find no MDD for anywhere, through a tax free savings account. They also have some gimmicky feature that deposits extra money if the weather is good, seemingly meaning that it is extra savings for a rainy-day fund. I do not think a tax free savings account should ever be considered a rainy day fund, considering the lifetime deposit limits and the major impact withdrawing can have on compounding.
Fees are mentioned twice on the website:
“Stash is absolutely FREE! You will see ‘Hello Stash’ transactions on your bank statement, but these are just transfers to and from your Stash” on the Help page
A zero TER, on the Past Performance page.
Besides only being able to have one product in your TFSA and having that TFSA handled by Liberty, I feel there must be some additional catch? How else could they offer a TER of zero?
Watch the presentation on fees, as mentioned in the show.
The Fat Wallet Show is a no-nonsense personal finance and investment podcast hosted by Kristia van Heerden and Simon Brown. Every week we answer questions by a growing audience of finance enthusiasts. Submit your pressing money and investment questions to ask@justonelap.com.
