Money Health with Nolly

18/01/2023

Online Classes are BACK!!!

Join us for Financial Restoration at 7PM on Tuesday, 24 January 2023.

Find topics on the poster.
Invite your friends, family, and colleagues.

Class link available upon request:
WhatsApp 071 153 2276
Email [email protected]

Join our Group Cava Your Zaka and learn more about all things finance related...

Looking forward to seeing you there
May 2023 be a Financially Fabulous Year!

17/01/2023

THE GOVERNMENT EMPLOYEES PENSION FUND

The Government Employees Fund is a defined fund that manages pensions and related benefits on behalf of government employees is South Africa. It is governed by the Government Employees Pension (GEP) Law (1996).

How does the GEPF work?

GEPF does not actually invest, it is a fund of funds. So, members make their monthly contributions to the fund, and GEPF sends the money to PIC (Public Investment Corporation – S.As fund manager) to be invested on its behalf.

It is a defined contribution benefit, meaning that members will never run out of money. However, you can’t get rich from this fund – comfortable, yes but not rich. And the reason for this is that the policy states that 90% of the funds must be invested locally (in S.A), not more than 5% in Africa and not more than 5% internationally. This means you can lose out on very good returns when other countries are performing well. GEPF members can only access funds when they exit the fund through retirement, ill health, discharge from service, or resignation in line with the rules as stipulated in the GEP Law.

When can members access the fund?

• Resignation:
The benefits apply to members who resign or are dismissed due to misconduct, an illness or injury caused by the member’s own doing. They can either be paid a once-off lump sum which may be subject to income tax or transfer their benefits to an approved retirement fund (an RA, Pension fund, provident fund or preservation fund). The money that is transferred is not taxed at this point and is only taxed when the member retires or withdraws and receives a lump sum from the new fund.

• Retirement The GEPF provides for normal and early retirement, as well as retirement for medical (ill health) reasons. Members whose employment have been affected by restructuring or re-organisation are also able to receive retirement benefits. Your GEPF can be transferred to another pension fund*

NORMAL RETIREMENT: Sixty (60) years is the normal retirement age for GEPF members. The benefits paid depend on whether a member has less than 10 years’ pensionable service, or 10 or more years of pensionable service. Members with less than 10 years’ service receive – a once-off cash lump sum that is equal to their actuarial interest in the Fund. Members with 10 or more years’ service receive a lump sum and a monthly pension annuity.

EARLY RETIREMENT: Under certain circumstances, members may retire early, that is before reaching the normal retirement age of 60 [between 55 & 60]. Again, the member’s years of pensionable service determine the benefits. Members with 10 or more years of service receive annuities and lump sum. These are calculated in the same way as for normal retirement, but with a reduction of a third of one percent (0, 33%) for each month between the dates of early retirement and normal retirement. Example: Retire at 55 and the monthly income is R15000 - You will get R15k in the first month - R14950.50 in the second month [R15000 less R15000*0.33%] - R14901.16 in the third month [14950.50 less R49950.50*0.33%] - This will go on until you reach normal retirement age. Once you make this decision, there is no turning back.

ILL HEALTH AND OTHER RETIREMENTS: Enhanced benefits are paid when members retire for medical reasons, when injured on duty, or when their posts are abolished through organisational restructuring. In these circumstances, members receive both annuities and gratuities if they have more than 10 years of pensionable service. For members with less than 10 years pensionable service, the benefit will be consistent with and not less than the resignation benefit.

• Death - Death while in service – your dependents will get the funds. - If survived by a spouse, spousal pension – you have the option to select 75% or 50% of your pension to be transferred to your spouse until they die. - Child pension for your minor beneficiaries or beneficiaries above the age of 18 but below the age of 22.

• Divorce The GEPF introduced the clean-break principle with effect from 1 April 2012. In order for the GEPF to deduct money from a member’s pension benefit, the divorce must comply with the Divorce Act. The decree of divorce must be issued as a valid court order specifically granting the former spouse a share of the member’s pension interest. If for example, the divorce order states that your spouse is entitled to 50% of the fund, the GEPF must comply. (The non-member / ex-spouse can get the funds almost immediately about 120 days) - ***. The right to a portion of the member’s pension interest is not automatic.

ADDITIONAL GEPF BENEFITS
- Not affected by market fluctuations. The fund will always ensure security. - Once you get retired, your pension is guaranteed (DEFINED)
- Death and Disability benefit. - Employer (13%) contributes more than you do (7.5%)

THE DOWNSIDE: Retire either under a life annuity or a guaranteed annuity and once you choose, you’re locked on. No option to choose a living annuity. If you die prematurely (within the 5-year guarantee term, you forfeit your money).

We will continue with the GEPF next week (24 January 2023)

If you are (or know) a government employee and would like to learn more about the GEPF, please contact me:
Call/WhatsApp: 0711532276
Email: [email protected]

16/01/2023

Most of my encounters with potential investors start with the investor asking how much return can they expect on their investment.

Consider this:

You're in an area that has had a drought for 3 weeks now, with no idea when your environmental conditions will improve. You have 10 seeds that you want to plant, how much return should you expect?

Or let's say the environmental conditions are at their best, how do you know that 3 days from now, there won't be a sudden change that will affect you horribly?

There are a lot of factors that affect the outcome, and of course, more information would need to be available before you can make a decision.

A certain level of risk can be associated with an investment.

"Higher-risk assets are priced to offer higher expected returns than lower-risk assets." This is known as the risk-return trade-off.

Though many know this principle in Investment planning, very few know how to apply it. RISK TOLERANCE:

Not only 'how much risk you can tolerate', but most accurately, How much risk can you AFFORD to take with your investment?

For example, Can you afford to lose 20% of your capital? How much will losing it hurt you? In other words, will it cost you your children’s education, your business security, etc. If this is the only money you have, putting it in a high-risk investment option because you want higher returns is gambling.

Getting back to the question "How much return can I get from this investment?"":

The return on investment is not guaranteed. Your risk profile guides you in determining the best strategy to manage risk (not eliminate it) and possibly maximise your investment return.

TYPES OF RISK & RISK MANAGEMENT: (you cannot completely eliminate risk, if you’re serious about getting something positive out – but you can manage it)

Market risk: is the day-today fluctuations in an asset's price, also referred to as volatility. [Examples are Currency risk; Interest rate risk; Equity risk]

Liquidity risk: is concerned with the ability to convert the value of an asset into cash at a value close to its market value.

Inflation risk: the risk that the investment will lose purchasing power over time.

Concentration risk: the potential for a loss in value of an investment portfolio or a financial institution when an individual or group of exposures move together in an unfavorable direction. To manage this risk, diversifying your investment is the best.

ASSET CLASSES AND RISK:

Equity: Value of shares issued by the company. The highest risk, highest return category of investment.

Bonds: involve a longer period of maturity. Expose the investor to more risk: if inflation or short-term interest rates go up during the period to maturity, the investor loses out.

Property: Real estate investment.

Cash: safest asset class and provides the lowest return over time. Manage liquidity risk.

In the short term, cash and bonds are somewhat safer, however, in the longer term they provide less protection against inflation. This means that for long-term investment, they are riskier in terms of maintaining real buying power, while property and equities are safer.

Call to action:
It is not the investment itself that gets you good returns, it is the strategy in which you invest.
Do a risk tolerance assessment to guide your strategy for your next investment.

Next week: Investment Strategies!

10/01/2023

A wise man saves for the future, but a foolish man spends whatever he gets.
Proverbs 21.20

Saving is all about making provision for tomorrow, whether it be in the near future or far. We Invest and/or save for both the long-term and the short-term.

An example of long-term savings is retirement funds.

Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently. This includes setting your retirement goals, estimating the amount of money you will need, and investing to grow your retirement savings.

During the Pre-retirement stage, you contribute to a retirement fund every month. - You create a retirement plan where your financial needs at retirement will be determined.

At retirement, your retirement fund/s mature and you have the option of taking out 1/3 of the fund as a lump sum and the balance of the fund to receive an annuity income.
During or after retirement, the Life or Living annuity will provide you with an income.

BENEFITS OF RETIREMENT PLANNING

1. Peace of mind = This is by far one of the most important benefits of retirement planning. Planning ahead not only reduces your stress during retirement but also in the years leading up to it. The lack of planning can leave a cloud of uncertainty around the topic that can create an unnecessary level of stress.

2. Getting on the Same Page
One of the benefits of early retirement planning is that you can make sure your plans work well with other relevant parties. It’s never too early to make sure that you and your spouse are on the same page with spending and lifestyle desires in retirement, but your significant other may not be the only family member you may wish to have a conversation with.

Some retirement plans are often affected by a saver’s desire to meet other objectives such as assisting an adult child in starting or acquiring their business. To the extent that these goals may affect your own retirement savings, you will benefit from planning beforehand.

3. Reduce your taxable income

4. Empowers you to express your ideal retirement lifestyle and make changes to get you there.

5. Retiring at 55 is great when it’s part of your plan; being forced out of your job early isn’t. Unfortunately, nearly half of all current retirees aren’t retired by choice.

6. Avoid negative inheritance – taking care of aging parents

7. Avoid running out of money.

DOWNSIDE OF NOT HAVING A RETIREMENT PLAN

1. It will be difficult to maintain in retirement the same lifestyle that you had in your working years
2. Dependent on social grants
3. You might need to continue working past your retirement

In the following weeks you will learn:
a) Types of retirement funds
GEPF
PENSION FUND
PROVIDENT FUND
PRESERVATION FUND
RETIREMENT ANNUITY
b) How do the different retirement funds work?
c) When you can access your funds
d) The effect of divorce on your retirement fund
e) The tax implications at retirement and at withdrawal.

09/01/2023

If you have made the decision to better your financial knowledge and financial situation this year...

Check out what you will be learning from Monday to Friday🙂

Happy New Year!
May this year be the year you improve your financial knowledge and do better concerning your finances.

Get in touch for consultations:
Email: [email protected]
WhatsApp/Call: 071 153 2276

09/01/2023

The key to creating and increasing wealth is to:
Use most of our money on assets that increase in value and assets that generate income and to use liabilities wisely.

WHY DO WE INVEST?

The Principle of Harvest : You reap what you sow.
In other words, we invest so that we may enjoy the fruits of our labor when the seeds mature.
Investing our money means that we can protect it from unnecessary or reckless spending, and we can grow it so that we have more than what we initially put in. By investing, we may generate an income and increase our wealth.

We also invest to create wealth for ourselves and our loved ones
Wealth provides you with money to fulfil your future goals. It offers a steady flow of income even when you are no longer employed or working. This can be a great way to ensure financial liquidity and help your loved ones to continue to live a life of comfort, abundance, and security.

WHY IS INVESTMENT PLANNING IMPORTANT?
Investment planning allows you to identify your financial goals and put together strategies to meet them.

HOW DO WE APPROACH INVESTING?
Where you are in your life can guide you towards your most important financial goals, to grow your wealth and secure financial freedom.

*Investment Planning approach:
- What is the investment goal?
- How much do you need?
- When do you need it?

For example, the goal is to have an emergency fund, the amount is 3 to 6 months' expenditure and I need it now because emergencies happen now!

Next week we learn about Investment return and risk.

Have a lovely week.

08/11/2022

South African households are R34.4 trillion short of insurance they need to replace breadwinners' incomes.

08/11/2022

There is a beast we all fear. It lurks in the shadows. Instilling fear but never attacking. Brutal. Conniving. Savage. Threatening.

Ever present but never seen.
Leaving us vulnerable; Exposed and trapped.

We all know this presence. It tells us to keep hiding. It reminds us how safe and blessed we are to be where we are. It warns of the danger of ever leaving our safety.

It whispers: "What would people say?"
So...
We live with it, within the boundaries it creates for us.
"This is as far as I can go."
"This is all I can do."
"The conditions do not allow..."
This is fear. Good old paralysing, burdening 'Fear'.
It won't kill you. Think about it. If you die, it dies. IT CAN'T KILL YOU.
Fear IS NOT the beast.

How do we know what people would say about our situations before they say it?
Or do we fear what we would say? What we would do?

We are the beast that stops us from colouring outside the lines. We make the limiting rules and abide by them. We are the shadow that blocks the light of our dreams. We reject ourselves before anybody else does. We put ourselves down first. We lower our standards. We lower ourselves.

But if we are the beast, shouldn't we be hunting?
We are not prey.

07/11/2022

Who is the prey? Fear or You ...

07/11/2022

A Financial Planner develops strategies to assist you with managing your financial affairs so that you can meet your financial objectives.

Go to my page for more information.

Kind regards,
Your Financial Planner

Momentum is a leading financial services provider in South Africa. Momentum’s broad range of advice, insurance, investments, and health offerings give clients the best possible financial solution. Let’s work together to find the best solution for you.

07/11/2022

South African households are R34.4 trillion short of the insurance they need to replace breadwinners' incomes.

This is according to the Asisa insurance gap study, which is done every three years.

The lowest-income earners are the most vulnerable, with only 6% of the death cover they need in place.
Read the article for more info.

https://www.news24.com/fin24/companies/sa-households-insurance-gap-reaches-r344-trillion-15-times-higher-than-the-national-budget-20221102

It's not enough to only know these things.
What do we do about it?

- Do not underestimate the power of a financial plan:
Get a Financial Planner to do a Financial Needs Analysis (FNA) for you to determine if you have sufficient provision for all risk events and for your specific financial objectives.

An FNA compares your current financial situation to your desired financial position and recommends how you can cover the gap between the two to ensure that you meet your financial needs and objectives.

An FNA includes:
- Estate Planning: Wills; Winding up costs; Dependents' position; etc.
- Retirement Planning: Pre and/or Post retirement planning
- Investment Planning
- Risk cover: Disability, Critical Illness and Death
- And specific financial objectives.

Have you made sufficient provision?

South African households are R34.4 trillion short of insurance they need to replace breadwinners' incomes.

07/11/2022

Cava Your Zaka presenting:
Balling On A Budget!

We all have months where the budget is just too tight.
How do we meet our financial and emotional needs in those months?

Join Online Class on the 8th of November 2022 at 7PM
Topics:
• Meeting Financial Emergencies
• Improve your broke
• Things you can do at no cost

Hope you don't miss it.
Meeting link available on request.

07/11/2022

The best time to have a life insurance policy in your name is now.
Premiums are based on a variety of factors (your age, overall health, whether you smoke, family history, etc.).
You can't predict the exact amount you may have to pay.
However, the earlier you purchase a life insurance policy and the healthier you are, the more affordable it tends to be.

Life Insurance has many benefits and missing out on those benefits is an expensive choice.

Benefits:
- Financial security
- Paying off debt
- Paying living expenses for dependents
- Paying final expenses.

Now, these benefits are the reason why many people say they do not need life cover:
- "I don't have dependents."
- "I don't have debts"
- "My parents will be able to cover my final expenses in the unfortunate event of my death."

However true these statements may be, Life cover is a wealth weapon.
It enables you to leave a legacy you wouldn't have been able to leave with your savings.

It's time to shift from doing things only when we have to.
You can get cover now.
You will benefit from it.
It's not wasteful.

03/11/2022

Many don't have life insurance and the reasons are not always the same.
If you don't have Life Insurance,
please comment below.

is essential for protecting your family financially in case of a death.

Top 5 Life Cover Benefits:
1. Payouts are tax-free
2. Provides for dependents' living expenses
3. Can cover final expenses (funeral & burial expenses)
4. Can cover Terminal illnesses
5. Some policies can supplement retirement savings.

03/11/2022

What makes an education protector/plan a good financial product?
Please vote below.

An 'Education Protector' is a financial product that can be used as both an insurance product and an investment tool.

Here's how it works:
- You get life cover for the purpose of providing for your child/ren's education in the event of your death. The payout will be the insured amount for the cover period.

- The cover is for a specific period [Term cover] - meaning, if you don't die until the end of the term, the insurance benefit expires.

- At the end of the term/period, you get your premiums back.
Although the amount of your premiums may not be enough to cover your child's education, it has many benefits.

02/11/2022

In a world where we can’t agree on anything, how do we know & choose what’s right?
There’s just too much information; Too many options to choose from.

In last night’s class: Finance Matters – This or That, we discussed three topics [Investments, Debt and Insurance] and the different conflicts within each subject:

conflicts
• Which is better, saving or investing?
• Should I have an Education Protector for my child, or should I just invest towards their education?
• Should I manage my own fund or get a fund manager?

Fact or Fiction?
You are either a passive or an active investor.

conflicts
• Should I finish paying off my debt before I start saving?
• Should I save towards purchasing an item cash or should I just finance the purchase?
• Should I rent or purchase an apartment?
• Should I Finance the purchase of a home, or should I rent to own?

Fact or Fiction?
Credit providers will not lend me more than I can afford.

conflicts
• Term insurance vs Whole Life insurance
• Home Protectors vs Life Insurance
• Disability and Critical illness cover vs Income Protector

Fact or Fiction?
My company covers me for death, disability and critical illness, I do not need another policy.

THE BOTTOM LINE:
CHOICES/OPTIONS ARE THERE BECAUSE LIFE IS NOT A ONE-SIZE FITS ALL.
WHAT WORKS FOR ONE PERSON MAY NOT NECESSARILY WORK FOR YOU.
IT IS IMPORTANT TO UNDERSTAND HOW & WHY THINGS WORK TO DETERMINE WHETHER THEY WOULD WORK FOR US.
If you missed the class, watch it on Facebook: https://www.facebook.com/1007427622/videos/639753044296244/
Pdf will be available by Friday, the 4th of November.
Request on WhatsApp using this link: https://wa.me/message/PAYMX6HLV2S3L1

31/10/2022

Join us on the 1st of November 2022
Finance Matters: This or That [Money Controversies]
Topics covered:



Included in the class are myths and facts about money.

Don't miss out!

Class link will be provided

26/10/2022

Stand Your Ground

I had 2 bullies in primary school. They never actually did anything to me, but they showed me that if they wanted to, they would do some damage.

I couldn't tell my big sister because they too had a big sister, way bigger than mine. It was a fight we couldn't win.
So, I just kept my distance.

Then, 1 weekend I met them at a church event and we played together.
From then on, we got along just fine. They became my allies.

Fear is a bully and running from it is not an option.
Fear dissolves when we actually see what it is and what it is made of. It crumbles because in actual fact, fear has no power except for the power we give it.

So, when fear presents itself - "Molefe don't run!"😂
Stand your ground.

26/10/2022

The number 1 thing when starting a business, let it be something you believe in. Let it be something that aligns with your core values.

It’s not enough that it will make you a lot of money.

There are many reasons people start businesses.
But know this: Not all of us can sell sandwiches or fruits, even though many are making from it; not all of us can be tutors, even though many are making money from it; not all of us can be successful bloggers, traders, etc. – but there is something in each of us that is gold!

What is your gold?

Comment below to request the Pdf copy of the class.
To watch the recorded class kindly visit & join Money ABCs with Bongy via this link: https://www.facebook.com/groups/697520904709002/?ref=share

People interested in starting a business often struggle with how/where to start.
And once you've started the business, how do you ensure business continuity and success!
Join us on the 25th of October 2022, at 7PM SAST as we discuss entrepreneurship.

Topics covered:
- What you need to know/do before starting a business.
- Business Planning
- Business Funding
- Business assurance
- Buy & Sell agreements
- Key persons.

Invite your friends

25/10/2022

If you want something, just go for it!

Don't let fear stop you.
Don't let doubt stop you.
Don't let rejection stop you.
Don't let negativity stop you.

You want it, it's yours.
You want it, do something about it.
Qha ke!

25/10/2022

Nobody is forcing anything on anybody.

You are just surrounded by people whose beliefs do not align with yours.
If you don't believe in hustling, remove yourself.
If you don't believe in spirituality and/or religion, remove yourself.
If you don't believe in mental health, remove yourself.
If you don't believe in financial independence/ financial wellness/ financial literacy, remove yourself.

Instead of trying to shut people up, s**a kulondawo!
You don't need to argue. You don't need to prove yourself.

You just need to find yourself in spaces where YOU are essential.
We are all trying to make sense of the world.
We are sharing what works for us because it may work for someone else.
If you are not the person who is supposed to receive that message, dedela abanye.

Mind your own beliefs.
Qha!

25/10/2022

"What you still need to know is this: before a dream is reaised, the Soul of the World tests everything that was learned along the way. It does this nor because it is evil, but so that we can, in addition to realising our dreams, master the lessons we've learned as we've moved toward that dream. That's the point at which which most people give up. It's the point at which, as we say in the language of the desert, 'one dies of thirst just when the palm trees have appeared on the horizon'."

-

24/10/2022

People interested in starting a business often struggle with how/where to start.
And once you've started the business, how do you ensure business continuity and success!
Join us on the 25th of October 2022, at 7PM SAST as we discuss entrepreneurship.

Topics covered:
- What you need to know/do before starting a business.
- Business Planning
- Business Funding
- Business assurance
- Buy & Sell agreements
- Key persons.

Invite your friends

24/10/2022

On our way to 😌

24/10/2022

There are many benefits to estate planning:
• The smooth winding up of your estate
• Limiting costs and taxes
• Distributing your assets to your loved ones

Learn more about :

03/10/2022

The little things will add up

Are we all feeling the pressure? To be there, do that and have it all?

As the days go by, things are supposed to change, and they do change. For some, the changes are obvious and noticeable over a short period of time, while for others these changes can take a bit longer.
We want these changes to validate ourselves and our lives.

But happiness is now, in the little things that you overlook. From the air you breathe and the water you drink, to the work that you do, the food you choose to eat, it all matters.

Your smile and the sound of your laugh. Your favourite things and your weirdness. Your pet peeves. The music you listen to and the conversations that set you alight.

All these little things add up to the person we call you. And it matters.

The future is always closer than we think. It is present. It’s in the things we do and the things we have.

What do you have today?

Health? Life? Music? People? Water? Light?

Why do you do what you do?

Does it make you happy? Does it make you smile? Does it just feel right?

14/09/2022