Discretionary (after tax Savings)


You can invest your savings in different asset classes including shares (also known as equities), bonds, cash, property and alternative investments. You also have the option of investing your money into different asset classes directly through an investment vehicle or by going through a specific product or portfolio offered by a service provider.

No matter what age or stage of life you are in, it is important to think about wealth creation and wealth preservation. You need to build wealth to be able to provide for your family in the future, future needs, retirement etc. Once you have this peace of mind, you can then focus on the more important things in life and ultimately pass your wealth on to those you care about most.

Whether you want to save for your retirement, a child’s education or an overseas trip, starting now can significantly reduce the cost of reaching your goal. Each month that you put off saving in favor of spending, either increases the amount that you will have to save in the remaining months, or pushes out the date at which you will reach your goal. Starting to save earlier allows you to extract maximum benefit from the power of compounding growth/interest. Choosing to invest when you start to put money aside often leads to concerns about the ‘right time’ to invest; the right time is always now. You can’t get or buy time back once you’ve spent it.

If you follow the links on your left hand side: ETF – Exchange Traded Funds or SATRIX you would find some of the most effective ways of investing directly into a basket of shares on the JSE from as little as R300/pm.

The graph below shows that if investments are returning 10% per year and you need to meet your objective in 10 years’ time, delaying saving for just 20 months will increase the amount you need to save per month by more than 32%. With less time on your hands, the cost of a delayed start is naturally even more profound. The green line on the graph illustrates that when your time frame is five years, a 20-month delay results in more than a 63% increase in the amount required per month of saving.

We have the necessary tools, wealth building and preserving strategies that we can use and teach you to maximize your returns on any investment.


We can help you choose an endowment best suited to your specific requirements, but this is normally not the most cost effective vehicle for saving, although it has some advantages. You can either pay a lump sum amount into an endowment or pay regular contributions for a specific period of time. After this period you will have the full amount paid out to you, tax free. This vehicle is normally too expensive due to the fact that it has a fixed term. A more cost effective way of investing discretionary funds would be to invest in direct unit trusts or exchange traded funds.

Exchange Traded Funds

An Exchange Traded Product (ETP) is an investment vehicle which provides an investor with direct access to a basket of shares traded on stock exchanges such as the Johannesburg Stock Exchange (JSE) with the convenience of trading in a single security. Most ETPs track an index, such as the FTSE/JSE Top 40. ETPs are attractive as investments because of their low costs (Total Expense Ratio [TER]) and the ability to purchase them like a normal listed security. An ETF combines the diversified portfolio of a unit trust investment with the tradability features of a listed security allowing it to be bought or sold during each trading day at the market ruling price. ETPs are passive investments, i.e. they provide the average performance of the asset class or index being tracked and not active investments (which seek to outperform the index). Source: etfSA – Education

Unit trusts

Unit trusts are an increasingly popular savings option for post-tax money, and when used correctly can give you an above average return over the medium term. A unit trust allows investors with similar objectives to pool their money in a portfolio for the purchase of underlying securities. This enables you to buy into a diversified portfolio of shares, bonds, money market and other financial instruments you would not normally have access to as an individual.


We will train you on how to choose and invest in a unit trust or exchange traded fund best suited for your specific requirements, in such a way that you can adjust and make changes to suite your circumstances.

See below the line graph that illustrates a slight change in the total cost of an investment and how it affects the maturity value over time. (Same inflation and pre-cost yield)