Mvumbi Consult Pty LTD

08/06/2026

fyi

03/05/2026

Old notes

03/05/2026

15/04/2026

" The love of money is not the root of all evil. The lack of money is the root of all evil for many people." Robert T. Kiyosaki

15/04/2026

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13/04/2026

“If you can't explain it to a six-year-old, you don't understand it yourself.”
― Albert Einstein

11/04/2026

CORE FINANCIAL MISTAKES TO AVOID

Avoid neglecting budgeting or tracking expenses—make sure you account for every rand.

Living beyond your means—maintaining a lifestyle that exceeds what you can afford—can be risky.

Failure to properly manage your debt.

Lack of an emergency fund: It is advisable to maintain savings equivalent to 3–6 months of expenses, providing financial stability during challenging periods.

Failing to save for retirement or delaying the process until later in life can hinder financial growth. Initiating retirement savings in your late twenties or early thirties allows you to maximise the benefits of compound interest. It is advisable to maintain your retirement funds when transitioning between employers, rather than withdrawing them.

Overlooking Tax Efficiency – It is essential to comprehend the tax considerations associated with investment activities and retirement withdrawals, especially as one approaches retirement age.

11/04/2026

INVESTMENT ACCOUNT TYPES AND OBJECTIVES

Basic unit trust investment - primarily seeks to increase funds in an account that provides maximum flexibility.

Tax-Free Investment – Earn returns in an account that provides tax-free growth on your investments. Annual contributions are limited to R46,000, with a lifetime cap of R500,000.

Retirement Annuity – Tax-advantaged savings for retirement; accessible upon retirement.

Offshore Investment - placing funds in economies and regions outside South Africa.

Endowment policies - optimal investment choice for high-income earners seeking to minimise tax liabilities. These investments are subject to a 30% tax on interest earned, a 12% tax on capital gains, and no tax on foreign dividends.

A Preservation Fund - protect and increase your current retirement savings until you require them, offering tax advantages along the way.

Living Annuity - income is drawn from retirement savings, and the capital may run out.

Life Annuity – Provides guaranteed income from your retirement savings.

09/04/2026

2. Living annuity

A living annuity is an investment vehicle through which income is generated from the performance of underlying assets. Investors have the flexibility to select from a variety of funds available on the provider’s platform, with returns subject to market volatility.
Annually, on the anniversary of the annuity’s commencement, investors have the option to determine the proportion of capital to be withdrawn as income, within a range of 2.5% to 17.5%. It is important to note that selecting a higher withdrawal rate will result in a more rapid depletion of invested capital.