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SKOKKENDE koste mag dalk aan jou belegging vreet

SKOKKENDE koste mag dalk aan jou belegging vreet

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Goeiedag!

Theo Vorster gesels op ‘n gereelde basis in die media, veral NETWERK 24, oor beleggings en so meer. Die onderstaande artikel het baie aftrek gekry en ons deel dit graag met u.

Die vrae wat u uself moet afvra is:

  • Hoeveel betaal ek?
  • Weet ek wat die totale koste is, alle lae ingesluit?

Laat weet ons indien u onseker is oor u koste struktuur. Geniet die lees.

Die Sake en Sauvignon-slypskole by die Vryfees in Bloemfontein was ’n besondere geleentheid – Media24 het ’n wenner met hul Feeskafee-konsep, waar al die koerante, TV-kanale (kykNET en Via) en tydskrifte onder een dak is!

’n Ietwat bitter nasmaak, was die gesprekke met mense oor die koste wat hulle op beleggings en vir beleggingsadvies betaal. Ek vind dit amper misdadig as ’n oom en tannie jou vertel dat ’n adviseur hulle ’n aanvangsfooi van tussen 3% en 5% op hul beleggings kwoteer – op ’n neseier van R5 miljoen kom dit neer op ’n aanvangsfooi tussen R150000 en R250000 wat na die neseier van die adviseur gaan (en dít nogal by ’n welbekende instelling) in plaas van na die belegging!

Daar is oorgenoeg bewyse dat mense wat van finansiële adviseurs gebruik maak, aansienlik beter daaraan toe is as mense wat nié van finansiële advies gebruik maak nie.

Die vraag is: Wat is ’n regverdige prys om vir die diens te betaal?

Voordat ons by die koste van advies kom, die jongste studie (Julie 2017) oor die waarde van finansiële advies kom van die Internationale Longevity Centre in Brittanje (ILC-UK). Wat die studie soveel meer waarde gee, is dat die ILC-UK onafhanklik is en nie verbind is tot enige finansiële instelling nie, maar eerder fokus op navorsing op die implikasies dat mense vandag baie langer gaan lewe as ooit tevore.

In dié studie is daar na werklike data van meer as 90000 huishoudings in Engeland gekyk. Die slotsom was dat mense wat van finansiële adviseurs gebruik maak, beter daaraan toe is as mense wat nie adviseurs gebruik nie, ongeag hoe welvarend hulle is.

“Armer” mense, oftewel mense wat op ’n streng begroting moet oorleef, was om die waarheid te sê 21% beter daaraan toe. Die welvarendste groep mense was 16% beter daaraan toe. Dis vergeleke met mense wat nie finansiële advies gebruik het nie. Die studie het gehandel oor ’n tydperk van 10 tot 15 jaar. Soos verwag, het die voordeel van advies met tydsverloop en ouderdom toegeneem.

Die vraag is nou: Indien finansiële advies so ’n groot bydrae lewer tot jou finansiële welvaart, wat is ’n billike kostestruktuur vir goeie advies?

Om die vraag behoorlik te antwoord, is dit belangrik om die verskillende koste uit mekaar te hou aangesien appels nie altyd met appels vergelyk word nie – die punte hieronder is op die grondslag dat die adviseur uiteindelik vir die finansiële ontleding, beplanning en inwerkingstelling verantwoordelik gaan wees, tesame met die deurlopende bestuur en monitor van die portefeulje:

  1. Geld wat van die belegging afgetrek word alvorens jou geld belê word (dit word gewoonlik strukturering-, inwerkingstelling- of beplanningsgeld genoem): Die vertrekpunt hier is dat daar gewoonlik heelwat werk gedoen moet word alvorens ’n volledige plan, met ontledings, langtermyn- finansiële modelle en ’n beleggingsaanbeveling, aan die kliënt gedoen kan word. Die vertrekpunt is dat die koste aan tyd en kundigheid gekoppel behoort te word. As ’n riglyn behoort dit iewers tussen R7500 en R25000 (indien werklik gekompliseerd) te wees indien die belegger wel die belegging uiteindelik by die adviseur plaas. In die R5 miljoen-geval hierbo behoort die beplanningskoste nie meer as so R7500 te wees nie!

  2. Fooi vir die bestuur van die onderliggende beleggingsportefeulje: As vertrekpunt moet die totale deurlopende fooi nie meer as 3% van die waarde van die bates per jaar beloop nie. Afhangende van die struktuur van die belegging (aktief vs. passief of binnelands vs. buitelands) kan die 3% per jaar heelwat verlaag word. Om die totale deurlopende fooie te verstaan, moet drie elemente uitmekaar gehou word en afsonderlik verstaan word – hoewel dit uiteindelik bymekaar getel moet word om die totale deurlopende fooi te bereken:

    Adviesfooi – sowat 1% van die bates onder bestuur; dit kan verlaag word indien die bedrag relatief hoog is en/of die kliënte nie veel deurlopende insette van die adviseur verlang nie. Dit is ook altyd raadsaam om te onderhandel oor ’n maksimum fooi per maand indien dit gaan oor ’n groot bedrag.
    Platform- en administrasiefooi – vlakke van tussen 0,5% en 0,75% van die bates onder bestuur is redelik standaard in die effektetrustfonds- en beleggingsbedryf.
    Onderliggende fondsbestuursfooie – dié fooi kan wissel van 0,5% tot 2% van die bates onder bestuur afhangende van die spesifieke mandaat aan die fondsbestuurder.

Wees dan ook versigtig vir prestasiegelde, “fonds-van-fonds”gelde, transaksionele koste en wrapper-gelde wat in sekere gevalle bygetel kan word!

Daar is alternatiewe tot so ’n fooistruktuur, veral waar die belegger slegs ’n spesifieke diens of kundigheid wil bekom. Hier verwys ek spesifiek na tegniese boedelbeplanning, batetoewysing- en/of portefeuljemoduleringsdienste. In dié gevalle gaan die adviseur ’n fooi hef vir die spesifieke diens en sal dan nie verantwoordelik wees (of geld verdien) vir die langtermynprestasie van die portefeulje nie.

Theo is uitvoerende hoof van Galileo Capital en ’n direkteur van Verso Wealth: Hy is ook ‘n spreker oor politiek-ekonomiese aangeleenthede en beleggings.

Shocking costs may eat away at your investment

Shocking costs may eat away at your investment

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Good day!

Theo Voster talks to the media on a regular basis, especially NETWORK 24, with focus on investments. The article below received a great deal of attention, which we would like to share with you.

The questions you should ask yourself is:

  • How much do I pay?
  • Do I know what the total cost is, all levels included?

Please inform us if you are unsure about your cost structure. Enjoy the read.

Enjoy the read and please inform us should you wish not to receive any ad-hoc communication.

Shocking costs may eat away at your investment

The Business and Sauvignon-workshops at the “Vryfees” in Bloemfontein were special events – Media 24 has a winner with their Festival Café concept, where all the newspapers, TV channels (kykNET and Via) and magazines are under one roof!

The conversations had with people about the costs they pay for investments and investment advice left a somewhat bitter aftertaste.

I almost find it criminal when an elderly lady and man tell me that an advisor quoted them a starting fee between 3% and 5% on their investments – on a nest egg of R5 million it comes down to a fee of between R150000 and R250000 which goes to the nest egg of the advisor (and that be it from a well-known institution) instead of the investment!!!

There is more than sufficient proof that people who make use of financial advisors are significantly better off than people who don’t.

The question is: If financial advice plays such a major role towards one’s financial wealth, what is a fair price to pay for the service?

Before we get to the cost of advice, the latest study (July 2017) about the value of financial advice comes from the International Longevity Centre in Britain (ILC-UK). What gives this study so much value is that the ILC-UK is independent and is not connected to any financial institution, and focus their attention on research regarding the implications of longevity.

In this study, they looked at actual data of more than 90000 households in England. The conclusion was that the people who made use of financial advisors are better off than those who do not, irrespective of how prosperous they are.

“Poorer” people, in other words, people who must survive on a strict budget, were actually better off, in actual fact they were 21% better off. The more prosperous group of people were 16% better off. This is compared to people who did not make use of financial advice.

This study was performed over a period of 10 to 15 years. As expected, the benefit of advice increased over time and age.

The question is now:

If financial advice adds so much value to your life and financial well-being, what would be a reasonable cost structure for good advice?

To answer the question properly it is important to keep the different costs apart, since apples are not always compared with apples.

The points below are the basis on which the financial advisor eventually will be responsible for financial analysis, planning and implementation together with ongoing management and monitoring of the portfolio:

  1. Money that is deducted from your investment prior to the money being invested (it is normally called structuring-, implementation- or planning fees): There is normally a lot of work to be done prior to presenting a complete plan, for example, things like an analysis, long term financial models and investment recommendations. The starting point is that the cost should be linked to time and ability. As a guideline, it should be somewhere between R7500 and R25000 (if really complicated) if the investor eventually places the investment with the advisor. In the R5 million case above, the planning cost should not be more than R7500!
  2. The fee for the management of the underlying investment portfolio: As a starting point, the total ongoing fee should not exceed 3% of the value of the assets per annum. Depending on the structure of the asset (active vs passive or domestic vs foreign) the 3% per annum could be heavily reduced. To understand the ongoing fees, three elements need to be separated and should be understood separately – although these are eventually added together to calculate the ongoing fee:

  • Advisory fee – approximately 1% of the assets under management; it can be reduced if the investment amount is relatively high and/or the client does not expect too much ongoing input from the advisor. It is also advisable to negotiate a maximum fee per month if it is a large investment.
  • Platform and administration fee – levels between 0.5% and 0.75% for assets under management is a reasonable standard in the unit trust and investment industry.
  • Underlying fund management fee – This fee can vary between from 0.5% to 2% of the assets under management depending on the specific mandate and fund manager.

You need to be cautious of performance fees, “fund-of-fund” fees, transactional costs and wrapper fees, which in some cases can be added!

There are alternatives to the above fee structure, especially where the investor only requests a specific service or transaction. I specifically refer to estate planning, asset allocation and/or portfolio modelling services. In this case the advisor will levy a fee for the specific service and will not be responsible (or earn money) for the long-term performance of the portfolio.

Call us on 021 943 5301 or email us at info@verso-wealth.co.za

Visit our website today at www.verso.co.za

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The content in this article is wholly owned by the Verso Group of Companies. Companies in the Verso Group are authorised Financial Services Providers.

HOW TO ACHIEVE FINANCIAL FREEDOM

HOW TO ACHIEVE FINANCIAL FREEDOM

There is a big difference between being financially independent and being rich. Too many people waste their chance of achieving financial freedom through paying interest on loans, debt and luxury purchases. Everyone should strive to be in a position to choose between working every day of their life or doing the things they have a passion for. Here are 3 steps to help you get on track to achieving financial freedom.

1. Get clear and defined financial goals.

I want to retire at age 60 with sufficient assets (investments and savings) that can provide me with 85% to 100% of my current annual income.

2. Develop a plan and stick to it.

Once you’ve defined your financial goal, you need to develop a plan for how you’re going to achieve it. Below are 4 guidelines that will assist you to structure your plan.

a. Pay yourself first.

Rather than paying your debt and liabilities first, determine the amount you want to save and put that away. Then follow-up on the outstanding payments you need to make.

b. Manage unproductive debt.

These are debts and loans on assets that will not produce income. If you have debt, try to pay it off as quickly as possible so you can be debt free. Having a plan for how you will pay it off can help.

c. Have an emergency fund.

This should be equal to the total of 3 months’ expenses.

d. Grow your productive assets.

Productive assets are assets that have the ability to deliver income and capital growth on a regular basis. This could be investing in a secondary property to generate rental income. A good objective is to grow your productive assets to an asset value of 20 times your yearly expenses.

Once you have your financial goal and a plan for achieving it in place, it’s important to keep it up to date. This leads us to the final step.

3. Review and Adjust Your Plan.

It’s important to review and adjust your goals continuously especially in the case of any life changing event such as marriage.

Once you have an idea of the financial goals you want to achieve, a qualified financial planner can help you to realise those goals.

If you would like to have your current financial plan reviewed, or speak to one of our planners to assist you in establishing a financial plan, you can contact any of our Verso Wealth branches nationally, here.

– by Wessel Oosthuizen

Verso Wealth (Pty) Ltd is an authorised Financial Services Provider with FSP license number 46260. To find out more on their services offered, click here.

This article is a general information sheet and 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 financial adviser for specific and detailed advice. Errors and omissions excepted. (E&OE)