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“Your greatest asset is your earning ability” (Author Brian Tracy)
Two beliefs common to almost all South Africans are the feeling that we are pretty much immune from injury and illness which will prevent us from earning an income, and that our most valuable asset is our home followed by any vehicles.
The belief that nothing can happen to you is a dangerously and frighteningly inappropriate one, especially when you consider that it has been extensively reported that a person’s most valuable asset is their ability to earn an income. The scarcity of jobs in South Africa puts additional pressure on those who are already earning an income.
Life insurance cover is a vitally important discussion that takes place between you and your financial advisor. Equally important is purchasing income protection. But what do you ask your financial advisor during these conversations?
Let’s start at the beginning by putting income protection into context. As much as we would like to be like the superheroes in the Marvel movies, we simply are not. We are made of flesh and bone. Injuries and illnesses that alter the whole course of a person’s life can manifest in an instant and indeed they do occur on a daily basis.
This is the reality faced every day on our roads. South Africa does not have an effective public transport system, so travelling in your own transport is a reality for almost all South Africans. This means that they place themselves at high risk and face the devastating statistics when it comes to road accidents. Statistics show that some 65 000 people sustain major injuries on South African roads every year.
The statistics when it comes to critical illness are also frightening. In 2018, just one life insurer paid claims to the value of R4.69 billion to 28,453 individuals and their beneficiaries. Cancer accounted for 27.9% of all claims, cardiovascular disorders 24.3%, respiratory disease 6%, and cerebrovascular disorders (strokes) 5.7% of all claims.
All of these illnesses showed an increased incidence when compared to 2017. Longevity has increased the chances of you surviving these illnesses. However, many people are never the same after surviving cancer or a stroke.
Every financial plan or discussion needs to begin with an analysis about how a client’s current and future income stream can be protected from injury, illness or death.
The importance of this is significant. Financial commitments do not stop when you become injured or suffer a critical illness and are unable to work. You will still have to pay your bonds, school fees, vehicle finance and insurance. Neglecting any of these payments could be devastating, especially if your insurance cover lapses as a result.
Another factor that needs to be considered is the sphere of influence (dependency ratio) in South Africa. An income earner may have five or six people who depend on it. This is a frightening reality in South Africa where the unemployment rate is 29%.
From a business owner’s perspective, this responsibility increases exponentially. Not only do you have to look after your dependents, you also have a financial commitment to your staff who need to provide for their families. An injury or critical illness for a business owner has a significant ripple effect on the people around them.
The final point to consider when looking at the importance of income protection is the prevalence of injuries and illnesses. The macabre reality of life is that you only die once, and when that happens, there are no financial commitments to your dependents. Injuries and critical illnesses are common occurrences and you need to provide for yourself and your family during this time. Statistics show that if you experience an injury or critical illness once, your likelihood of experiencing another injury or critical illness increases by 30%.
The departure point of any financial discussion should be the protection of your most valuable asset; your ability to earn an income now and into the future.
“Excellence is my new habit.” (Dirk Stroda)
Athletes know that excelling in endurance sports and building wealth both require more than pure skill. They also demand resilience, patience, and discipline.
Here are six habits that top investors and elite athletes share. Read on to find out how to win your race – be it financial or physical.
Greatness starts with audacious dreams. Whether you’re aiming for financial freedom or the finish line of an ultramarathon, the bigger the goal, the more room for growth.
Successful wealth builders don’t shy away from ambitious targets. They know that even the most significant financial goals can be achieved with consistent effort over time. The key? Being specific. When you define precisely what you want, it becomes something you can chase relentlessly.
Running hundreds of kilometres may seem daunting, but it shifts from impossible to inevitable with steady discipline. The same goes for building intergenerational wealth: one step at a time is the only way to get closer to your goal
Accumulating wealth, like running the Comrades or completing the Cape Epic, is all about endurance. The finish line isn’t going anywhere, but rushing there often leads to burnout or injury. Successful investors know to trust the process, staying the course even when progress feels slow.
Endurance athletes know this well: pacing is the key to conquering long distances. A strong start is impressive, but the careful, strategic strides carry you to the end. There’s no prize for reaching the halfway point first. As the story of the tortoise and the hare illustrates, the victory only comes when you cross the final finish line.
No one wins alone. Successful investors surround themselves with seasoned advisors who’ve seen the markets’ ups and downs. These coaches can filter out the noise, offer strategic insights, and guide them away from risky choices.
Similarly, top athletes have coaches who are motivators and sounding boards. They provide clarity, feedback, and perspective, helping athletes push through doubts and unlock their full potential. A good coach doesn’t just teach you how to win – they teach you how to learn from your mistakes and grow.
In a world where tech dominates, winning is as much about brains as it is about brawn. For investors, technology is a powerful ally. From checking your spending against your budget to monitoring portfolio performance and setting goals, smartphones have become invaluable financial assistants. (Tech is great for tracking stuff. But do remember that your financial advisor offers a big-picture human perspective that no app can compete with.)
In the same way, technology has revolutionised training in the athletic world. Athletes can monitor their pace, recovery, and nutrition in real-time. And they can use tech to identify their opponents’ weak spots. But there’s a catch. Too much information can overwhelm. Both investors and athletes must avoid ‘analysis paralysis’ – the temptation to overanalyse every move instead of focusing on the bigger picture.
The best investors understand that building wealth isn’t just about managing portfolios to balance liquidity, tax strategy, fiduciary duties, and risk. It’s a holistic process that keeps the end goal in sight, even when the details seem overwhelming. This is why it’s important to prioritise your health (mental and physical) and to spend time doing the things that are important to you with the people who matter most.
Likewise, any top athlete knows success isn’t just about running faster or harder. It’s about growing physically, mentally, emotionally, and spiritually. Without balance, performance falters, whether on the track or in the market.
Both investors and athletes know one universal truth: not everything will go according to plan. The road to success is often paved with failures, setbacks, and unanticipated hurdles. It’s how you respond to those bumps that defines your journey.
In financial planning, strategies may need adjusting when times get tough. The ability to adapt and stay the course separates the winners from the rest. The same holds for athletes: every race and every training session is a learning experience. Mistakes aren’t failures – they’re opportunities to refine, recalibrate, and return stronger.
At your next financial review, let’s think like athletes and focus on growing your wealth in the long term. As your financial endurance coaches, we are here to help.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
© FinDotNews
For many South Africans, the fact that the rand weakens over time against the dollar feels like the biggest reason for investing offshore. When you think that one dollar cost less than R7 in 2011 compared to over R17 today, it seems obvious that having money offshore is imperative.
Over long periods of time, this trend will probably hold. The rand is likely to steadily get weaker. But it’s important to understand why. Primarily, this is due to South Africa having a higher inflation rate and a higher risk premium than developed markets. Significantly, both of these things mean that returns from South African assets should also be higher.
The past year has been a very good one for South African investments. Local property has gained more than 50%, and both shares and bonds are up more than 20%.
Image source: Visio Fund Managers
Notably, the rand has also been strong. It’s gained around 10% against the dollar in the past 12 months.
This is only a short period, but it’s a reminder that markets never move only in one direction. After many years of South Africa underperforming, local assets have been very strong this year. This further highlights the importance of having a diversified portfolio.
In the long run, these factors and rand weakness actually tend to even themselves out. In dollar terms, the returns you earn in South Africa have actually been better over long periods of time than you could earn just about anywhere else – ours is the third-best performing stock market in the world in dollar terms in the period between 1900 and 2019.
While the fluctuating rand often seems like the only reason you could ever need to seek refuge in offshore investments, there are far more meaningful reasons to diversify internationally.
Currency movements are notoriously difficult to predict, and the rand is no exception. Over the years, the rand has experienced periods of significant depreciation, only to stabilise or even strengthen later.
For example, the rand weakened sharply during the 2008 global financial crisis and again in 2015 during the “Nenegate” scandal. This alarmed many investors, who sent large sums of cash offshore. In both instances, the currency subsequently regained some strength, resulting in losses for those investors. Relying on these short-term movements as the main reason for investing offshore is speculative and risky, especially for long-term investors.
The primary reason to invest offshore should be to diversify your portfolio, not to hedge against a weak rand. South Africa represents only a small fraction of the global economy, and offshore investments provide access to a broader range of sectors, industries, and companies that are not well-represented in the South African market.
Global markets, especially in developed economies, offer exposure to industries like technology, healthcare, and renewable energy that may not have the same growth potential locally. Diversifying into these sectors allows you to tap into global trends and reduce the risk of being overexposed to South Africa’s economic cycles.
We all know that South Africa faces many structural challenges, including political instability, slow economic growth, and reliance on commodity exports. Investing in global markets allows you to reduce your exposure to local risks and focus on economies that are more stable and diversified.
For example, the COVID-19 pandemic hit South Africa hard. However, international markets, particularly in the US and Europe, recovered quickly due to massive government stimulus packages and the strength of large multinational companies. Investors with offshore exposure were able to benefit from this global recovery.
The underlying growth in global equities and bonds – as opposed to the performance of the rand – is what ultimately drives these gains.
This theory is borne out in practice. Historical data shows that globally diversified portfolios tend to outperform South African-only portfolios in risk-adjusted terms over long periods.
Ultimately, offshore investing should be part of a broader, long-term plan focused on diversification, asset allocation, and risk management. The rand’s movements should not be the primary driver of this decision. Instead, you should look to global markets for access to growth opportunities, protection against local economic risks, and better risk-adjusted returns.
To discuss how best to diversify your investment portfolio, speak to us.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
© FinDotNews
“Life’s tragedy is that we get old too soon and wise too late.” (Benjamin Franklin)
Born between 1997 and 2012, the youngsters of Gen Z are driving change in the investment world at lightning speed. Unlike the rest of us, they’re totally at home in a tech-driven world. For them, managing money via mobile apps and online platforms isn’t just convenient, it’s essential. Forget slow and steady approaches like retirement annuities (RAs) and unit trusts – Gen Z is all about speed, efficiency, and micro-investing.
With nothing more than a smartphone and a 5G connection, they’re fully equipped to navigate global markets, invest spare change, and even participate in crowdfunding bright ideas.
Gen Z isn’t just looking for profits; they want their money to stand for something. These young investors are at the forefront of the socially responsible investing movement, putting their money where their values are. Sustainability, green energy, and ethical business practices are top priorities, and they’re not afraid to demand change.
By choosing to invest in companies that champion environmental and social causes, Gen Z is pressuring businesses to adopt better practices. Their influence goes beyond financial returns – it’s about reshaping corporate behaviour for a better and more sustainable world.
Rising living costs and the desire not to be stuck behind a desk all week have seen Gen Z embrace the gig economy with a vengeance. For them, work isn’t confined to a 9-to-5. Instead, they’re Airbnb hosts and freelance providers on Upwork while also holding down a ‘conventional job’ and working digitally from cafes.
This flexibility gives them greater control over their income streams and the freedom to pursue diverse revenue sources. Micro-investing fits perfectly into this world, allowing them to put small sums of money to work for them. It’s an era of adaptability and resourcefulness, where the barriers to entry in investing are lower than ever.
But with freedom comes challenges. While the gig economy offers flexibility, it can send your work-life balance into disarray and erode traditional financial safety nets like employer-sponsored pensions and group benefits. As side gigs become main gigs, it’s essential to weigh the risks of losing core income stability.
Despite these pressures, Gen Z is relentlessly optimistic about its financial future. They understand that knowledge is power and are fiercely committed to further education, constantly consuming online courses, podcasts, and articles to stay financially savvy. Their hunger for learning (and avocado toast) and their interdisciplinary mindset mean they’re pretty good at adapting to today’s ever-changing financial landscape.
Of course, no generation is perfect. Gen Z faces some unique challenges on their financial journey, including:
Balancing optimism with caution is crucial. Gen Z must pair their enthusiasm with a good dose of old-fashioned prudence to navigate these challenges.
There’s more to financial planning than just investing. As advisors, we use tech-driven strategies to our advantage. Our value is helping clients weave these modern tools into comprehensive plans that also include risk mitigation and estate planning (no matter how young you are.)
Whether you’re part of Gen Z or just intrigued about how they’re shaking things up, this generation’s innovative spirit is a wake-up call. It’s not just about keeping up with the times – it’s about redefining what wealth means for the future.
Stay tuned for the next article in this series, where we’ll dive into how millennials continue to evolve the financial landscape.
If you’re curious about any of the above, please don’t hesitate to call us. We’re here to help, whatever your age. And please do forward this article to your Gen Z family and friends…
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
© FinDotNews
Stock markets took a breather in the second half of October in anticipation of the US elections. The S&P 500 flattened out in the second half of October, leaving it less than 1% higher for the month, while the SA All Share Index gained 0.5%. Both markets have, however, notched up healthy double-digit gains for the year to date.
Domestic financial markets will be driven by the S&P 500’s election-related ups and downs in November. However, there are several reasons to be optimistic about South Africa’s longer-term investment outlook.
The SA stock market has been riding high on positive sentiment since the formation of the Government of National Unity (GNU), which passed its 100-day mark in early October. Investors, particularly foreign investors, remain cautiously optimistic about the new coalition government’s performance but need to see more concrete evidence of policy progress before they are all in.
The IMF’s recently released economic outlook report for Sub-Saharan Africa painted an encouraging picture of South Africa’s economic achievements. While the Fund did urge the central bank to implement further rate cuts, it said it was encouraged by recent trends and speedier economic reforms that put the country in a position to make the most of global monetary policy easing and lower inflation.
Deputy Minister Paul Mashatile wooed foreign investors during a week-long roadshow in the UK and Ireland in early October. His main message was that the government understands the need for more private investment in sectors such as energy, water and infrastructure and welcomes foreign investment.
The latest inflation data highlights that the SA Reserve Bank’s inflation fight is yielding better-than-expected results. Consumer inflation fell below the 4% mark for the first time since 2021. However, the central bank can be expected to be cautious, given the inflation risks associated with recent geopolitical events.
The coalition government has consistently committed to delivering on its fiscal goals. Although October’s Mid-Term Budget fell slightly short of expectations, that commitment should keep National Treasury on track to stabilise debt at 75.5% by 2025/26 versus the 75.3% pencilled in at the February Budget. This will be a crucial milestone because lower debt repayments unlock money to spend on other critical areas, including job creation, education, social spending and service delivery.
The Financial Action Task Force (FATF, a global anti-money laundering body) shared the good news that South Africa has “largely addressed” eight outstanding actions that stand in the way of us being removed from the grey list. That leaves six to address before February 2025. These are the most challenging and include the government proving it is investigating and prosecuting complex crimes.
South African financial markets are historically subject to the vagaries of global risk appetite. However, an improving fundamental economic picture is setting the country up for success when foreigners do turn their attention to emerging markets – and SA can show it is one of the most attractive investment destinations in the world right now.
If you have any questions about how all of this affects your investment portfolio, please give us a ring.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
© FinDotNews
“The bottom line is that cyber risks sit right alongside rising systemic risks, and is the biggest emerging, and constantly evolving risk facing businesses today.” (SHA Specialist Risk Review 2022)
In Africa, Interpol has identified phishing – particularly Business Email Compromise (BEC) – as well as online scams, as both the biggest current crime threats, and the crimes most likely to increase in the next three to five years.
This is Interpol’s list of the prominent cyberthreats identified in the African region:
Below, find out how these cybercrimes are perpetrated and how to protect yourself, your company and your employees with tips from SABRIC and CISA.
For 7 consecutive years, BEC attacks have been the most financially devastating cyber threat worldwide, and continue to be the most prevalent cybercrime, says Interpol. A type of phishing attack, it causes significant financial losses and often reputational damage.
It includes cybercriminals using an organisation’s email account to send out fraudulent messages with malicious links or attachments that install malware or steal confidential information.
Most commonly, however, BEC involves cybercriminals manipulating emails, especially payment requests containing bank account details. This is because it’s common business practice to send confirmation of or changes to bank details, or invoices containing bank details, via email.
In BEC attacks, these emails are intercepted – or fraudulent emails or invoices are created – changing the account details to the cybercriminal’s account. Any payments subsequently made are lost to cybercrime.
A recent High Court ruling in this regard, set a precedent applicable to all businesses, as the judge noted: “… the plaintiff’s case established clearly that sending bank details by email is inherently dangerous, and so must either be avoided in favour of, for example, a secure portal or it must be accompanied by other precautionary measures like telephonic confirmation or appropriate warnings which are securely communicated.”
Specific BEC preventative measures include:
One of the oldest, most pervasive cyberthreats and a major source of stolen credentials and information, phishing is a cyber-attack aimed at stealing sensitive information like usernames, passwords and credit card details, typically using deceptive emails or websites, apparently from trusted sources, that contain malicious attachments or links to viruses or malware.
Phishing is linked to an estimated 90% of data breaches and causes not only direct financial losses but enables other forms of cybercrime.
Cyber extortion involves cybercriminals using digital methods to threaten or extort victims for money and/or assets. It often involves the attacker threatening to reveal embarrassing personal information, delete important data, sabotage systems and networks, or launch distributed denial-of-service (DDoS) attacks.
An increasingly popular type of cyber extortion is ransomware, a malicious software that locks users out of their own data, business systems and devices by encrypting their files. Victims must pay a ransom to have their files decrypted and regain access.
Such attacks can be extremely costly to businesses with substantial financial losses incurred due to ransom payments and recovery efforts, as well as downtime, lost production, and reputational damage.
Ask your accountant for help in preparing a business continuity and disaster recovery plan so you are prepared if the worst happens.
Online scams take advantage of users’ poor levels of digital literacy to lure them with false promises. Below are the most common online scams increasingly prevalent in the African region.
These malicious software programs are spread through phishing emails and malicious websites to steal sensitive information such as usernames, passwords and financial data by capturing keystrokes or stealing login credentials from unsuspecting victims. Cybercriminals may use the information to steal money directly from the victim or sell the information on underground markets.
According to the 2022 SHA Specialist Risk Review, cybersecurity ranks third on the list of top threats for local businesses, after power disruptions and labour matters.
The report says that not addressing cybersecurity opens companies to a range of risks, including:
October is Cyber Security Awareness Month – Stay Alert!
Whether you work remotely, travel frequently, or just love staying connected wherever you go, chances are you’ve used a public Wi-Fi hotspot.
They are nearly everywhere — airports, restaurants, coffee shops, libraries, public transit, hotel rooms, you name it.
Using these free Wi-Fi hotspots is super convenient, allowing you to access online accounts, catch up on work, and check emails while on the go. But these networks aren’t perfect and could leave you vulnerable to cyberattacks.
To learn more about public Wi-Fi, its risks, and how you can safely use it, read through this comprehensive guide.
The problem with public Wi-Fi is that there are a tremendous number of risks that go along with these networks. While business owners may believe they’re providing a valuable service to their customers, chances are the security on public Wi-Fi is lax or nonexistent. Follow along to learn more about public Wi-Fi security risks.
One of the most common threats on these networks is called a man-in-the-middle (MITM) attack. Essentially, a MITM attack is a form of eavesdropping. When a computer makes a connection to the internet, data is sent from point A (device) to point B (service/website), and vulnerabilities can allow an attacker to get in between these transmissions and “read” them. So what you thought was private no longer is. Scammers may also carry out a MITM attack using phishing emails. In these emails, they’ll impersonate a trusted source to trick you into sharing your private information.
When using an encrypted network, the information sent between your device and the Wi-Fi router is in a “secret code.” Because of this, nobody can see the information without a key. Most Wi-Fi routers have encryption turned off by default and must be turned on when setting up the network. If you connect to an unencrypted network, it is much easier for a scammer to get ahold of your web traffic and use it for nefarious activities like MITM attacks. While the public Wi-Fi network you want to use may be encrypted, there is no sure way to tell if this has happened.
Thanks to software vulnerabilities, there are also ways that attackers can slip malware onto your computer without you even knowing. A software vulnerability is a security hole or weakness found in an operating system or software program. Hackers can exploit this weakness by writing code to target a specific vulnerability, and then inject the malware onto your device.
Wi-Fi snooping and sniffing is exactly what it sounds like. Cybercriminals can buy special software kits and even devices to help assist them with eavesdropping on Wi-Fi signals. This technique can allow the attackers to access everything that you are doing online — from viewing whole webpages you’ve visited (including any information you may have filled out while visiting that webpage) to being able to capture your login credentials, and even hijack your online session.
Malicious hotspots, also known as rogue access points, trick victims into connecting to what they think is a legitimate network because the name sounds reputable. Say you’re staying at the Goodnyght Inn and want to connect to the hotel’s Wi-Fi. You may think you’re selecting the correct one when you click on “GoodNyte Inn,” but you haven’t. (Note the capital N.) Instead, you’ve just connected to a rogue hotspot set up by cybercriminals who can now view your personal information.
Now that you know the possible public Wi-Fi security risks, you might be wondering how you can use a public network safely. While there is always some degree of risk, there are ways to protect yourself from the dangers of public Wi-Fi. Follow along to learn how you can stay safe when using a public wireless connection.
When using a public Wi-Fi network, it’s best to avoid accessing sensitive information. If you need to get online to browse for directions or do something else that’s less sensitive, you can probably do it. But if you’re trying to pay your bills or buy something, it may be best to wait.
A great way to minimize public Wi-Fi security risks is to use a virtual private network (VPN). By using a VPN on public Wi-Fi, you’re accessing a private network, or VPN tunnel, through which you send and receive information, adding an extra layer of security to your connection. While some VPNs are free, you’ll likely have to pay to get the best security features. Be sure to buy your VPN from a trusted provider to ensure your data is safe.
Only browse websites that include an SSL certificate while on public Wi-Fi. A website has an SSL certificate when the URL begins with “HTTPS.” Website addresses that start with “HTTPS” are encrypted, adding an extra layer of security and making your browsing more secure. If you connect to unsecured Wi-Fi networks and use “HTTP” instead of “HTTPS” addresses, your traffic could be visible to anyone else on the network.
[H3] 4. Use browser extensions
Consider installing an extension like HTTPS Everywhere* which will force all websites you visit to connect using “HTTPS.” This is a Firefox, Chrome, and Opera extension produced by a collaboration between the Electronic Frontier Foundation and The Tor Project. By using this extension, you can reduce the risk of ending up on an unsafe website.
Configure the wireless settings on your devices to not automatically connect to available public hotspots. You can do this by turning off the “Connect Automatically” feature on your devices so they don’t auto-connect and search for known Wi-Fi networks.
Doing this can prevent your computer or device from broadcasting that it’s trying to connect to your “home Wi-Fi” network and allow an attacker to create a bogus network with the same name.
If you must access sensitive information in public areas, consider putting a privacy screen on your devices. A privacy screen will blacken your display for everyone but you, keeping fraudsters from being able to copy or photograph any of your sensitive information.
Make sure you turn off file sharing before accessing public Wi-Fi. If you keep file sharing on, your folders may be accessible to anyone connected to the same public network, allowing a hacker to get their hands on your private information without your permission.
When you’re using public Wi-Fi, cyber snoops could gain access to your passwords. One way to enhance your protection is by enabling two-factor authentication (2FA) on any services that offer it. When enabled, this ensures that even if someone gains access to your password while you’re using public Wi-Fi, they still won’t be able to access your accounts. Usually, you’ll receive a second login step — a call or a code on your smartphone, for instance — that you’ll use to log in to your account.
It’s crucial to always update your operating system (OS). OS updates often include important security patches that can further protect your device from Wi-Fi threats. By always installing the latest updates, you can browse the web knowing you’re protected by the most up-to-date security features.
When you’re done browsing, be sure to log out of any services you were using. Also, check your settings to make sure your device will “forget the network” and not automatically reconnect to that network again if you’re within range without your permission. This can help minimize the time your device is connected to a public network.
Using antivirus software is another great way to stay safe while using public Wi-Fi. With antivirus software installed, you can use public Wi-Fi networks knowing you are protected against cybersecurity threats such as computer viruses and spyware.
Now that you know how to safely use public Wi-Fi, let’s take a look at some of the signs of an unsafe network.
While many hackers love public Wi-Fi networks, some may go the extra mile and create a hotspot solely for malicious purposes. To help you avoid these types of networks, take a look at some of the common signs of a rogue Wi-Fi network.
Now that you know the nitty-gritty of public Wi-Fi safety, its risks, and how you can use it safely, you’re well on your way to maximizing your internet safety no matter where you go. To ensure your personal cybersecurity doesn’t stop there, you may also want to assess the security of your own Wi-Fi network to help keep your home Wi-Fi safe.
Still wondering about the risks of public Wi-Fi? Take a look at the answers to some common questions about staying safe on public Wi-Fi.
While it’s not a guarantee that you will run into security threats when using public Wi-Fi, it can be risky. Because of this, it’s crucial to be aware of public Wi-Fi security risks and take the proper precautions to stay secure online.
Yes, it’s possible. Most Wi-Fi routers keep a log of the websites visited using their connection. Because of this, the owner of the router can look through the internet activity of the connected users, therefore exposing your history.
If you do have to use public Wi-Fi, it’s best to avoid any internet activity that includes sensitive information such as:
By avoiding these activities altogether, you decrease the risk of your private information ending up in the wrong hands.
No, a public Wi-Fi network is not as safe as a private network. Unlike your own private network, you won’t know how the public Wi-Fi network was set up, who runs it, or who else is using it, making it much riskier to use.
Yes, a public Wi-Fi network can expose your computer to a virus. Due to its lack of security, a public Wi-Fi connection may be compromised by a hacker, allowing them to inject your device with viruses and malware.
*The inclusion of products, websites, or links does not imply endorsement or support of any company, material, product and/or provider listed herein.
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Author: Clare Stouffer
Source: Norton
Herewith the link:
“Gold is the universal language understood by all nations.” (George Herbert)
Just a few weeks ago, the gold price climbed above $2,500 per ounce for the first time in history. This has once again got South Africans talking about the attractiveness (or otherwise) of gold as an investment.
Gold is probably one of the easiest assets to understand. You can see it and touch it, and we all know that there is a limited supply and constant demand. That is why the gold price naturally appreciates over the long term.
But it’s also important to bear in mind that gold is not a foolproof investment. There are times – like now – when it makes impressive gains. But there have also been periods when it the opposite has been true. Between 2013 and 2019, for example, investing in gold would have lost you money.
It’s important to understand the pros and cons of investing in the precious metal, as this will help you to appreciate whether it should be part of your portfolio.
Any investor needs to take all of these pros and cons into account when deciding whether to allocate some of their money to gold. While it’s not for everybody, for many people it does make sense to have somewhere between 5% and 15% of your portfolio allocated to gold.
Investing in gold offers numerous benefits, including protection against inflation, a safe haven during economic uncertainty, and diversification. However, it also comes with drawbacks such as lack of income, volatility, and additional costs.
By exploring the various ways of investing in gold and carefully considering the pros and cons, South African investors can make informed decisions about incorporating gold into their investment portfolios. As always, its best to consult with your financial advisor to tailor investments to your individual goals and risk tolerance.
To discuss whether an investment in gold makes sense for you, speak to us.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
© FinDotNews
“Divorce is the one human tragedy that reduces everything to cash.” (Rita Mae Brown)
Your will is a legal document that spells out how your assets should be distributed when you pass away. This is all well and good when you’re married and you want to leave everything to each other. But what happens when you get divorced?
Thankfully, South African law has some built-in protection to help with this. According to the Wills Act, if you die within three months of finalising your divorce and haven’t updated your will, any bequests made to your ex-spouse are automatically deemed revoked – unless you explicitly state otherwise in your will. The law assumes you’d want to dissociate yourself from your ex-spouse.
But here’s the snag: this safeguard only lasts three months after the divorce. Once those three months are up, if you haven’t updated your will, the law assumes you decided to leave your will as is, and your ex will still inherit everything you initially intended. That’s why updating your will is one of the first things you should do after getting divorced.
Parents should appoint a replacement guardian for their children in their wills, and revisit their choices if they remain joint guardians after divorce. However, if the surviving parent is still alive and retains guardianship rights, the appointed guardian in the will may not automatically assume guardianship. The court will consider what’s in the best interest of the children in all cases.
Your will isn’t the only piece of paperwork you should update after getting divorced. As your financial advisors, we are here to help.
Divorce can be overwhelming, and admin is probably the last thing you want to be doing in the aftermath. But this is your future we’re talking about. Adjusting your will and estate plan ensures your wishes are honoured and your loved ones are cared for. Updating your will after a divorce can prevent potential conflicts and protect the people you care about most – be they children, new partners or other important family members.
If you’ve gone through a divorce, don’t wait! Contact us to make the necessary changes and rest easy knowing that your affairs are in order. We’ve got your back.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
© FinDotNews
“It is better to be roughly right than precisely wrong.” (John Maynard Keynes)
John Maynard Keynes, one of the greatest economists and risk-taking investors around, strongly advised putting investing on ‘autopilot’, and then going out and enjoying your life!
Investing can be tricky, even for seasoned professionals who try to buy and sell at the right moment.
Rand-Cost Averaging offers a solution that allows you to easily navigate uncertain markets by automating regular investments. With Rand-Cost Averaging, you invest the same amount in an investment at consistent intervals, regardless of price fluctuations. This strategy may lower the average cost per share or unit trust. This can safeguard you from market volatility and remove the need to time your purchases perfectly.
This strategy is excellent for inexperienced investors who are risk-averse and are scared to wade in. It could be a great way to start investing.
But it’s also a good way of reining in impulsive risk takers. A risky approach can get you interested in edgy companies which may (or may not) be the market’s next lightning bolt. Rand-Cost Averaging imposes discipline and removes the temptation to chase the next big thing.
Imagine you have R600 that you want to invest in a unit trust over 6 months, instead of investing it all at once.
Total Investment: R600 over 6 months
Total units bought: 2 + 2.5 + 3.33 + 5 + 2.5 + 2 = 17.33 units
Average price per unit: R34.62
Rand-Cost Averaging is great, but there is one important caveat. The entire concept assumes that over time, markets tend to rise.
While this is generally true for most sound investments, you certainly don’t want to consistently allocate money towards an investment that’s consistently underperforming. If you’re buying at a low point month after month and not seeing a return, then you may be sinking money into an investment that is not likely to make gains. That’s a position that no investor wants to be in, so think twice about using a consistent approach in this case.
Before you start setting up debit orders, you’ll need to find out how much you can afford to dedicate to your chosen investment. If you’re investing for retirement, there is no one-size-fits-all answer to how much you should save for retirement, but academic studies based on historical data can give you a ballpark figure. We’d advise aiming to save around 15% of your net income (i.e. after tax) if you’re early in your career.
Of course there is. You may have a large sum to invest from the sale of a business or an inheritance for instance. Ultimately, the best approach depends on your financial situation, risk tolerance, and investment goals. To achieve benefits similar to those of Rand-Cost Averaging you might want to consider making your investment in phases.
But there may be an opportunity cost to holding part of the lump sum in a cash-related investment instead of diving straight into equity.
In many cases, the consistency that Rand-Cost Averaging brings to your financial life is an asset in itself. Please do call us if you’d like to discuss any of the above.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
© FinDotNews
The race between Kamala Harris and Donald Trump is running neck and neck, with Harris seen as slightly ahead after being widely considered the winner of their September debate. A recent CNN poll found Harris leading by a percentage point, coming in at 48% versus Trump’s 47%. However, some investment managers, including UBS, predict she has as much as 55% support.
Given that there is no clear leader in the presidential race to date, it’s advisable not to invest in a particular election outcome or make rash decisions. Instead, investors should base their decisions on longer-term considerations and not in response to short-term volatility.
Risk-averse investors could consider investing in assets with downside protection. These can be accessed by investing in conservatively invested balanced funds that use hedging strategies to protect against potential market selloffs.
If Harris becomes president, she’s likely to maintain most of the focus areas and policies implemented by the current administration. In a Harris presidency, investors can expect continued focus on sustainability, high-tech chip production incentives and ongoing fiscal spending.
A Trump presidency would be defined by higher tariffs, particularly on China, where he sometimes threatens to introduce 100% tariffs (compared with 10% on other countries). He’s also expected to support the domestic oil and gas industries to reduce energy prices. Tax cuts would also be a feature, sustaining fiscal stimulus in the US economy.
The common ground between the two candidates is that they will back continued government spending, regardless of an already significant budget deficit.
Bloomberg research shows that institutional investors expect a Harris presidency to be more positive for bonds. A Trump win, meanwhile, would be more likely to favour equities. The results show 50% of respondents plan to increase exposure to equities if Trump wins, whereas only 28% said they would if Harris becomes president. Most survey participants would cut their exposure to bonds on a Trump win but maintain it if Harris prevails.
Investing based on short-term considerations is never advisable, and it’s no different regarding the US elections. History shows that what happens immediately after the election rarely defines how financial markets will perform six months to a year after. Investors should expect elevated volatility in the buildup to the elections and after the results are published. The best strategy, as always, is to hold your course and rely on diversification to deliver long after the election results come in.
If you have any questions about how all of this affects your investment portfolio, please give us a ring.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
© FinDotNews
“…sending bank details by email is inherently dangerous.” (Extract from court judgment)
Before you make any payment to a supplier’s bank account on the basis of an emailed invoice, check that the bank account details in the invoice are genuine.
If your supplier’s or your own email system has been hacked, the invoice details could easily be fraudulent. And no one wants to transfer funds to a scammer’s bank account.
Let’s take a topical example… You decide to install a high-value inverter, courtesy of Eskom’s “no end in sight” load-shedding. “Speedy Sparkies Inverter Systems” email you a quote for R145,000. You accept. Back comes an emailed invoice from [email protected] asking you to pay R100,000 upfront to cover materials. You transfer R100k to the bank account on the invoice and ask when they will install. The friendly return email reads “Thanks for the payment, we’ll fit you in next week Thursday. Best, Fred”.
Thursday rolls around but no Fred. After some heated back-and-forth it transpires that you’ve been scammed. Denial, anger, acceptance, then off to the bank to ask for help and off to SAPS to lay charges. Fred, your bank and the police are all sympathetic but not hopeful of recovery. So what happened?
Using phishing tactics, the scammers hacked into Speedy’s email system and waited for a high value contract to pop up. They pounced, intercepting the email to you and changing only the return email address (by inserting a hyphen) and the bank account details.
You suspected nothing – the look and feel of the email and invoice were totally genuine, the wording of the mails was Fred’s, and the change to the email address was so subtle you didn’t notice it.
You blame Speedy for allowing their system to be hacked. You accuse them of negligence and of failing in their duty to keep your data safe in compliance with POPIA (the Protection of Personal Information Act). But Speedy deny fault and say it’s your mistake for not noticing the falsified email address and for not phoning Fred to check the bank account details. Speedy’s insurers confirm they have no cover for this sort of fraud.
Do you have a legal claim against the business? There’s no cut-and-dried answer to that, as case law outcomes to date have tended to vary with each particular set of facts. Judgments do often stipulate, however, that anyone making a payment to someone else is required to check that they are paying into the correct account.
As a customer, it’s probably safest to work on the basis that you could very well be held responsible and will almost certainly have to prove (at the very least) negligence on the part of the business in order to stand a chance of establishing any claim against it.
As is always the case, it’s much easier and less stressful to prevent this kind of thing from happening in the first place. Follow these four tips to avoid calamity…
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.
© FinDotNews
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73 Kariba St, Lynnwood Glen, Pretoria, 0081
Telephone:
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Physical Address:
73 Kariba St, Lynnwood Glen, Pretoria, 0081
Telephone:
+ 27 12 348 1386
Fax:
+ 27 12 348 3706
Email:
Time in the market is your most precious asset, you need to make use of it. Let us help you take the next step.
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