Podcast: The medics tribute show

In Latest, The Fat Wallet by Kristia van Heerden

There seems to be a battle for dominance raging between medical professionals and engineers on this show. This week we happened to receive emails from four healthcare professionals. Considering what’s happening in our hospitals at the moment, we decided to dedicate this week’s show to these heroes.


The bleeped show is below:


Win of the week: Busi

I am a doctor who has worked in both the public and private sectors.

I have a stockbroking account and always wondered what these random amounts of money popping up in my account were. Nonetheless would use the surprise money to buy more etfs and go on with life. Now that that I listen to you guys, I realise that these are dividends. I felt so stupid when I came to this realisation but thrilled at these little rewards.

I also had a chat with an older colleague of mine nearing retirement age. He advised me that the biggest hindrance to one’s retirement plans are kids. His advice to me was not to have any. Fortunately for me, unfortunately for my retirement plans, I already have a rugrat and I’m not planning on sending her back!!! 

I thought I’d help the lady who had a question about medical aids in episode 186.

There are medical aid ‘brokers’, the company Optivest comes to mind. They don’t deal with all medical companies however, so like insurance brokers, they have their pool of companies they deal with and so any quotations you get are based on that handful of companies. 

My advice is that since she already gets a subsidy from work on Discovery, to rather remain on there. Switching to another medical aid has implications as waiting periods may apply which is not idealnsince she has a chronic condition with expensive treatment. And much aa it pains me to say this, Discovery is one of the better medical aids. She should prescribe to the chronic programme, opt to collect her medication from a network pharmacy like clicks or Dischem or something, and can even look at switching options within discovery. The advantage of living in KZN is the coastal options work out somewhat cheaper. 

A listener had mentioned considering switching to medical insurance. A medical aid scheme and medical insurance are 2 different things, and though the insurance is cheaper, its best to go with a medical aid scheme if one can afford. 

P.S. What are Chuckles?


Kendra

I have a financial planner who advised me to go with Sanlam Echo Bonus as my RA. My current contributions are about 5% of my income.

I only recently started doubting what my financial adviser has recommended. I have seen the very high EAC of this RA. Is it true that the Echo Bonus is reliant on Sanlam’s performance as a company and is not guaranteed at my retirement? I could be wasting money in an RA with high EACs without this buffer of the Echobonus. I understand I will forfeit a fee if I make changes to my RA now, but I would rather do it sooner than later if there are better long term investment options available. Please help! 

The information I shared in this episode was found on the Sanlam Echo Bonus page. Double-check me there.


Carlo 

I am a young doctor. I just started working with one of the big cruise ship companies before the covid 19 apocalypse hit. Currently I am drifting in the pacific on a mission to repatriate some Asian crew members with no idea when I myself will be getting home.

Having some extra time on my hands (to say the least) I stumbled upon your podcast and proceeded to binge it religiously. My mind has truly been blown by your wit, charm, judicious use of swearing, and of course financial wisdom. Somehow you guys have had a calming effect during these difficult times, please keep up the good work.

I have just completed 2 years of internship and 1 year of community service in the pandemonium which we like to call the South African Public Health Service, and promptly decided to head out for the high seas.

I almost fell off my chair when I saw what the rand had done just before my new paycheck on the cruise ship (getting paid in USD) – Despite being trapped in a floating prison I feel quite happy about it.

I opened an easy equities account and decided to split my savings between the USD account and ZAR account, buying similar ETFs. 

Does it make sense for me to buy S&P 500 in ZAR and USD? Should I try to time my contributions by buying ZAR ETFs when the rand is weak and USD ones when the rand is strong (for example if we head back down to R15 to a dollar?) 

If the rand does strengthen again I feel like I will get hit double because my salary will decrease and the ZAR ETFs that have offshore exposure will surely also take a knock. How can I protect myself against this?

Is it stupid if my TFSA and my discretionary investments mirror each other? Should I be throwing specific types of ETFs into my TFSA?

I see that some sectoral ETFs like the Satrix FINI have been “klapped” – do you think any of these have room for growth (which sector should I buy with my “F you” money?) 

On the offshore side of things, are there any interesting USD ETFs which could offer interesting types of exposure that we can’t necessarily get access to from rand based products? I see there is an iShares HealthCare ETF and an INDIA ETF for example.

I am wishing everyone back home the best of luck and I can’t wait for Cyril to open the airports so I can come home and help with the fight.


Mary 

I work in healthcare. Believe it or not, our job and salary are precarious right about now. I was fortunate to receive a bonus now and my question is :

Do I pay off my credit card of R12,500 or save the money to prepare for the unknown. 

Can you talk a bit more in depth about rebalancing the portfolio. If one uses the Satrix platform and EasyEquities to invest, do we still need to rebalance and how?

Thank you for all you do. I look forward to listening to all your shows. You are appreciated.


Skhumbuzo

What effect does junk status have on RSA retail bonds? Does the interest rate get better or worse?

Here’s a link to my friend’s drive-in. https://www.facebook.com/DineInDriveIn/


The Fat Wallet Show with Kristia van HeerdenThe 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.

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