Know Your Money with Bronwyn Waner and Craig Finch

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Retirement planning goes far beyond building a substantial nest egg. As our guest Amika Gordon from Coronation Fund Managers explains, successfully navigating your post-retirement years requires understanding three critical risks that could derail even the most robust financial plans.

The first risk—inflation—is aptly named "the silent killer" for good reason. At a 6% inflation rate, one rand today will only purchase 17 cents worth of goods in 30 years. This erosion of purchasing power can devastate retirement savings unless your portfolio consistently outperforms inflation. Amika emphasizes that equities have historically been the best asset class for beating inflation over extended periods, making them an essential component of any post-retirement strategy despite their volatility.

Longevity risk presents another significant challenge as medical advances continue extending our lifespans. Many retirees underestimate how long their savings need to last, often planning for 15-20 years when they should prepare for 30 or more. This extended timeline affects both portfolio construction and sustainable withdrawal rates, with research suggesting an initial drawdown of around 5% can maintain capital adequacy throughout a three-decade retirement.

Perhaps most overlooked is sequence of returns risk—the potentially devastating impact of retiring just before or during a market downturn. Since no one can predict market timing with certainty, portfolios need to balance growth potential with volatility management through careful asset allocation and diversification. This explains why financial advisors recommend different investment strategies for pre-retirement accumulation versus post-retirement income generation.

The conversation offers practical insights for creating resilient retirement plans that can withstand these often-underestimated threats. Whether you're approaching retirement or already there, understanding these risks and implementing appropriate mitigation strategies could mean the difference between financial security and running out of money when you need it most.

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Venture into the world of professional investing with Amika Gordhan, investment specialist at Coronation Fund Managers, as she pulls back the curtain on what makes this 30-year-old South African investment powerhouse tick. 

Amika reveals Coronation's distinctive philosophy centered on two core principles: an uncompromisingly long-term perspective and disciplined valuation-driven approach. Unlike managers fixated on quick wins, Coronation evaluates investments over five-year horizons or longer, allowing them to see beyond temporary market noise and focus on intrinsic business value. With remarkable frankness, Amika explains how the price paid for assets today determines future returns—the foundation of their investment strategy.

We explore how Coronation's team of 52 investment professionals conducts hands-on research, meeting with company management and competitors rather than relying on external analysts. This proprietary approach gives them unique insights into both traditional South African companies and multinational businesses listed on the JSE. Amika shares fascinating examples of their portfolio construction, including how they balance exposure between domestic operations and international powerhouses like Naspers, Anheuser-Busch, and Richemont.

The conversation demystifies complex concepts like bond investments, building block funds versus flagship funds, and the crucial importance of diversification in managing investment risk. You'll gain valuable perspective on how professional fund managers remove emotion from investing decisions while maintaining the discipline to sell when assets reach fair value—even when it might be tempting to hold longer.

Whether you're an experienced investor or just beginning your financial journey, this episode offers rare insights into the methodical, research-driven approach that has made Coronation one of South Africa's most respected fund managers. Subscribe now and gain the knowledge to evaluate your own investment choices with greater confidence!

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Your relationship with money might be more complex than you realize. Ever thought about what happens when you speak kindly to your finances instead of with fear or frustration? Bronwyn Waner and Craig Finch explore this fascinating concept through the lens of Dr. Emoto's famous water crystal experiment, where water exposed to positive words formed beautiful crystal patterns while negative energy created distorted images.

We often carry unconscious money scripts from childhood. Remember hearing "money doesn't grow on trees" or witnessing your parents' complicated financial behaviors? These experiences shape our emotional reactions to spending, saving, and investing well into adulthood. What's revolutionary about this conversation is the suggestion that we don't have just one relationship with money, but several distinct connections: with earning, receiving, giving, saving, and growing wealth. Each carries its own emotional patterns that might be helping or hindering your financial journey.

The podcast presents a powerful visualization exercise where you imagine having coffee with money as if it were a person. Would your money appear as an intimidating force or a supportive ally? This personification reveals deeper truths about your financial mindset. Whether you struggle with retirement planning, experience guilt around spending, or worry about having enough, transforming your internal money dialogue could be the missing piece in your financial wellness. By shifting from scarcity thinking to abundance consciousness, you might discover that money, like water, responds to the energy you direct toward it. Ready to speak more kindly to your finances and see what transforms?

Share your own money relationship insights with us and subscribe for more perspective-shifting conversations that help you develop financial clarity and confidence.

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Worried about the South African Rand and wondering how to protect your wealth? This essential conversation tackles one of the most persistent questions in South African personal finance: how to effectively invest offshore when you have concerns about local currency stability.

We journey through the fascinating history of the Rand - from its days of strength in the 1960s when it traded at 80 cents to the dollar, to today's reality around 18 Rand to the dollar. Despite these dramatic shifts, we explore why a balanced approach remains crucial for most South Africans, with financial experts typically recommending about 40% offshore allocation for optimal diversification.

The episode breaks down two primary offshore investment pathways: asset swaps (where investments are made internationally but paid back in Rand) and physical transfers using your annual allowances. Every South African taxpayer can move R1 million offshore yearly without SARS approval, plus potentially an additional R10 million with proper tax clearance. For those with smaller amounts, we discuss investment products that allow as little as R50,000 to be globally diversified.

Beyond technical strategies, we examine deeper questions about confidence in South Africa's future and how that should shape investment decisions. Despite valid concerns, we highlight South Africa's economic strengths, including our globally trusted, freely tradable currency and the Reserve Bank's impressive track record of never defaulting on obligations.

Rather than making financial decisions from fear or following well-meaning but potentially misguided advice from friends, this episode emphasizes the importance of developing a comprehensive plan tailored to your specific circumstances and goals. Remember: every Rand needs a plan. Listen now to gain clarity on building a resilient investment portfolio that balances local commitments with global opportunities.

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Ever wonder why you sometimes make financial decisions you later regret? The answer might lie not in your knowledge of investments, but in your state of mind when making those choices.

Roland, a seasoned coach who's worked with financial planners for over 15 years through Aspiral Coaching and Leadership, joins us to share a powerful tool that's transforming the financial planning world: the BodyScan meditation. This isn't your typical meditation practice—it's what Roland calls a "mindfulness hack" that delivers immediate results even for skeptics and beginners.

Through a guided experience, Roland takes us on a journey from the soles of our feet to the crown of our heads, teaching us the crucial skill of directing our attention deliberately. As we practice feeling rather than thinking, something remarkable happens: the constant mental chatter subsides, creating space for clarity and presence. This shift from perpetual thinking to mindful awareness creates the perfect mental environment for making sound financial decisions.

The magic of this practice extends beyond the meditation itself. As our hosts discover, the post-meditation state brings heightened awareness, reduced confirmation bias, and stronger receptivity to professional guidance. When approaching financial planning meetings, this mental clarity allows both planners and clients to engage more authentically, moving beyond preconceived notions to discover truly personalized financial solutions. Ready to transform your relationship with money through mindfulness? This episode offers not just theory but a practical tool you can begin using immediately.

Try the guided meditation, share your experience with us, and discover how this simple practice might become your secret weapon for financial success. Subscribe now for more insights that bridge the gap between personal development and financial wellbeing.

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What makes a truly great financial planner? While technical expertise is essential, our conversation with Roland from Aspiral Coaching and Leadership reveals that emotional intelligence might be the secret ingredient that separates good financial advice from transformative financial guidance.

Roland shares his experience helping financial planners develop coaching skills that enable them to connect more deeply with clients. Through better questioning, patience, and mindful presence, planners can uncover what really matters to clients beyond the numbers. This emotional intelligence becomes particularly valuable during market turbulence, when staying grounded helps both planners and clients avoid reactive decisions that could derail long-term financial plans.

Craig brings nearly 40 years of financial planning experience to the conversation, having navigated through five major market crashes. His perspective highlights how a seasoned planner's calm guidance during downturns—like the 40% market drop in 1998—can save clients from panic-selling and instead help them stay invested to capture the eventual recovery. This wisdom isn't just about market knowledge; it's about emotional self-management.

We explore practical mindfulness techniques, particularly the "body scan," which both planners and clients can use before meetings to gain clarity and perspective. By focusing on bodily sensations rather than racing thoughts, this practice creates space for more meaningful conversations about financial goals as they connect to life values. The Wheel of Life assessment emerges as another valuable tool that helps clients align their financial decisions with what truly matters across all life domains.

Whether you're a financial professional looking to elevate your practice or someone seeking a deeper relationship with your money, this episode offers insights into how mindfulness, emotional intelligence, and genuine care create the foundation for financial wellbeing. Subscribe, share your thoughts, and let us know which mindfulness practices you might incorporate into your financial journey.

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What happens when life changes in an instant? Kalvin van Baalen knows this reality all too well. After flying into power lines during a paragliding excursion, Kalvin fell into the resulting fire, suffering burns over 70% of his body. That catastrophic moment transformed him from an active, healthy 21-year-old to someone who would spend over 400 days fighting for his life in ICU.

Kalvin's story isn't just about survival—it's about extraordinary resilience and perspective. "Nothing is actually an obstacle compared to what a real obstacle was—surviving and trying to walk again," he shares with remarkable candor. Now pursuing a finance degree with plans to become a CFA, Kalvin has channeled his experience into a methodical approach toward building a sustainable future. His paragliding accident didn't just change his body; it fundamentally altered his relationship with risk, both physical and financial.

As an ambassador for disabled golf, Kalvin visits schools and works with children with disabilities, showing them what's possible through authentic engagement and competitive spirit. His willingness to be visible—playing golf in shorts that don't hide his scars—creates powerful connections with children who can truly relate to his experience. Through our conversation, we explore crucial financial planning considerations for individuals with disabilities, particularly regarding insurance options available through group coverage at larger companies. Kalvin's journey reminds us why proper financial planning isn't optional—it's essential protection against life's unpredictable turns. When everything can change in thirty minutes, as it did for Kalvin, having appropriate safeguards in place becomes not just prudent but potentially life-saving.

Ready to rethink your approach to financial planning and risk management? Subscribe to Know Your Money for more insights on creating financial resilience in the face of life's uncertainties.

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Kalvin van Baalen shares his remarkable survival story after a devastating paragliding accident where he hit power lines, caught fire, and subsequently spent 413 days in ICU with 42 operations. His journey from being completely burned and given little chance of survival to becoming a competitive disabled golfer demonstrates extraordinary resilience and the power of an optimistic mindset.

• Kalvin was a passionate paraglider who dreamed of pursuing it professionally before his accident at age 21
• After hitting power lines during a competition, he suffered severe burns and spent over a year in intensive care
• His medical aid initially suggested doctors should "palliate" him as a non-recoverable case
• Despite spending two years in a wheelchair, he maintained a "delusionally optimistic" attitude throughout recovery
• Kalvin now plays competitive golf for Disabled Golfer South Africa, unable to qualify for Deaf Golf by just a few decibels
• His medical expenses totalled approximately R22 million, potentially the highest individual medical aid claim in South Africa
• Government hospitals in South Africa typically palliate patients with over 50% burns due to resource constraints
• Kalvin's advice: life can change in an instant, so pursue what matters and consider financial protection early

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Navigating the complex world of South African trusts has become increasingly challenging with recent tax legislation changes. Marteen Michau, founder of Fidelis Vox, brings clarity to these murky waters with expertise that could save families from costly mistakes.

The conversation reveals how South African trust structures are facing new hurdles, particularly for families with international connections. When South African trusts distribute funds to non-resident beneficiaries, they now face punitive double taxation scenarios. The recent extension of tax legislation means all taxable income (not just capital gains) distributed to non-residents will be taxed in the trust at higher rates, while still being taxable in the beneficiary's country of residence. With two different taxpayers involved, double tax agreements provide no relief.

Similarly significant is how distributions between South African trusts are now handled. The Thistle court case confirmed that capital gains distributed from one SA trust to another remain trapped at higher trust tax rates, even when subsequently passed to individual beneficiaries in the same tax year. This doubles the effective tax burden compared to distributing directly to individuals.

For those looking to internationalize their wealth, there's some positive news. SARS and the Reserve Bank now accept applications for direct distributions from SA trusts to offshore trusts (provided the offshore trust is a named beneficiary), streamlining a previously complex process requiring individual intermediaries and triggering transfer pricing complications.

Perhaps most compelling is Marteen's approach to preserving family wealth across generations through "family charter workshops." Gathering three generations around a metaphorical campfire to share the wealth creator's journey helps establish shared values and objectives that guide future financial decisions. As Marteen wisely notes: "Don't pass money on, pass a legacy on" – especially critical when research shows inherited wealth is now typically squandered by the second rather than third generation.

Have you considered how these tax changes might impact your family's wealth preservation strategy? Proper planning has never been more important.

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Demystifying trusts as practical financial planning tools is the focus of our enlightening conversation with Marteen from Fidelis Vox, whose very name means "Trusted Voice." Moving beyond outdated perceptions of trusts as tax avoidance vehicles, we uncover their strategic applications for both business owners and families.

Marteen walks us through fundamental trust concepts, explaining how these entities provide critical asset protection for business owners against potential creditors while ensuring business continuity after death. The structure avoids estate freezing, excessive executor fees, and potential family conflicts during estate administration – increasingly valuable benefits given South Africa's current delays in estate processing.

The conversation explores practical scenarios where trusts make sense: protecting assets for financially vulnerable family members, housing shared family vacation properties, and structuring business interests. We also address common misconceptions, discussing the requirement for independent trustees, the implications of housing primary residences in trusts, and the current regulations regarding loan accounts to trusts.

For families considering wealth protection strategies, Marteen highlights testamentary trusts as cost-effective alternatives that activate only upon death, providing protection for minor children without incurring ongoing administration expenses during your lifetime. She emphasizes that proper trust management is essential to maintain their legal protections and prevent them from being deemed alter egos of their founders.

Whether you're a business owner seeking asset protection, a parent planning for your children's financial security, or a family wanting to preserve shared assets across generations, this episode provides practical insights to help determine if a trust structure aligns with your specific circumstances. Subscribe to Know Your Money for more expert conversations on protecting and growing your wealth.

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