Mackay Wealth

02/07/2018

EDUCATION PLANNING
It takes careful planning and a disciplined investment approach to ensure you can afford the rising cost of education in South Africa. Tuition fees have rocketed sharply over the last 20 years – to the point where it could easily cost up to R560 000 to send a child born in 2010 to university for 4 years! Now is the time to prepare. The key to saving is to start early, since time is the great advantage in ensuring the money is there when you need it. There are a wide range of investment vehicles and tax-effective options out there that will all enable you to achieve your long-term goals.

Start by planning ahead:
o Define your goals – government or private school, college or university?
o Determine the investment time horizon – how old is your child, how soon will you need the funds?
o Choose the right investment product.

Education is invaluable – your children can take it everywhere they go. Give them the opportunity to learn and see how they flourish and enjoy a successful future.

29/06/2018

GAP COVER
What is it?
A problem medical aid members face is that surgeons, anaesthetists and other specialists often charge substantially more than medical aid rates. When this occurs, the medical aid member becomes liable to pay for the medical expense shortfall (self-payment gap).

Why do you need it?
The continued growth in the self-payment gap means that medical aids now pay less than half of the average total specialist fees, leaving members to pay the shortfall. The solution is for medical aid members to insure themselves against medical expense shortfalls through the range of Gap Cover options.

10/04/2018

Tax-Free Investing:
It is important to look at investment vehicles with flexibility – but which are still taxed efficiently. Tax-Free Savings Accounts (TFSAs) are a perfect example of this as they offer tax-free growth on your investment and also no tax on withdrawals – which gives you flexibility.

You’re allowed to invest up to R33 000 per year with an allowance of R500 000 over your lifetime. These values will hopefully be increased over time. If you contribute the maximum amount per year it means you will be putting in R2 750 a month. At this rate, you will reach your lifetime limit in 15 years and two months.

By starting early you are taking advantage of the compound interest you will get over time as well as the tax-free benefits. There is no Capital Gains Tax, and you wont be taxed on any interest, income or dividends. In other words, TFSAs are pretty amazing.

20/02/2018

The clock is ticking for you to cut your tax bill.

By making additional investments to your retirement fund and tax-free savings account you are able to save on tax, while still securing your financial future. Neither your tax free-savings account nor your retirement annuity are subject to capital gains tax, dividends tax (at 20% on discretionary investments) or tax on interest income.

With the 2018 budget speech coming up and the almost certain increase in VAT now is the opportunity to act. The tax year ends on 28 February 2018 which means you only have a few days to make the most of tax breaks available.

To find out more on how you can cut your tax bill, book your free consultation now or visit www.mackaywealth.com.

01/02/2018

The Provider Package: 31-55 Years Old

1. Life Cover & Income Protection
Taking care of your family is a priority at this stage of your life. Life Cover ensures that if you pass away you are still able to financially support your family as well as settle any existing debt. Income Protection secures your full income if you become occupationally disabled and cannot perform your occupational duties. This means you can maintain an enjoyable standard of living and lifestyle whilst still supporting your family.

2. Health and GAP Cover
Your health and ability to earn an income are your most valuable assets. A correctly set up health cover plan will guarantee that if your health is negatively affected in any way you are able to cover the medical expenses and unforeseen costs. GAP cover protects you from medical specialists who charge fees that are far higher than the current medical aid rate. When this happens, a self-payment gap is created for which you will become liable.

3. Retirement Planning
If you are changing jobs, it is crucial that you preserve the retirement savings you have built up over time. If you do not, your retirement plans are likely to suffer a major setback. Not only do you land up spending the capital you have accumulated, but you give up the future compound interest. The tax benefits of your retirement contributions and compound interest growth are also a major advantages of retirement planning.

To find out more on how you can get your financial portfolio set up visit

FINANCE SIMPLIFIEDSetting up your financial portfolio will not only enable you to achieve financial freedom, but will also make sure that you are able to handle any unexpected obstacles in life. Managing your finances should not be complicated. However, many people don’t know where to start, and o...

24/01/2018

The Young Professional Package: 22-30 years old

1. Tax-free investing
You’re allowed to invest up to R33 000 per year with an allowance of R500 000 over your lifetime. By starting now you are taking advantage of the compound interest you will get over time as well as the tax-free benefits. Try and set it up a debit order and start getting used to the discipline of budgeting it into your “expenses”. Then gradually increase your contributions over time according to how your salary increases. If you’re more tech-savvy, there’s a mobile app called Stash that lets you easily stash small amounts of money in the Top 40 JSE companies, tax-free.

2. Income Protection
By ensuring your salary, you give yourself the peace of mind knowing that if you could not do your job anymore you will still be able to maintain your standard of living and more importantly your independence. Income protection premiums are also priced according to the amount of cover required and are influenced by aspects such as gender, age, health, and occupation. Women will generally pay less than men, and non-smokers less than smokers. Young individuals should look to take advantage of their favorable insurance profile.

3. Retirement Planning
For every six years you delay, your retirement capital halves. Yes, retirement is almost unthinkable and you have thousands of other ways to spend your hard-earned cash, but the money you contribute now will have decades to work for you and build up substantial interest, far more so than if you wait and only start contributing in your 30s and beyond. You don’t need to put away a large amount of your income, but if you can afford it, consider contributing up to the tax relief limit which is 27.5% of your annual taxable income. Your contributions are also tax deductible up to a certain limit.

To find out more on how you can get your financial portfolio set up visit

23/01/2018

Great summary of how you should diversify your portfolio at different ages.

A basic principle of investing is that you should gradually reduce your portfolio risk as you grow older.

23/01/2018

Budgeting for 2018:

The initial step towards financial freedom is budgeting and accepting that you shouldn’t spend more than you earn. A properly set out budget will ensure that you can pay any expenses as well as put enough money into your short and long-term investments without worrying too much. A budget also helps you become a disciplined saver and will make you more conscious of where your money is going.

Set up your free consultation to find out how you can make your budget work for you.

18/01/2018

Start the year off right.

Financial Planning will not only help you to achieve your financial goals for the year, but will also ensure that you are able to handle any unexpected obstacles. Managing your finances should not be complicated. However, many people don’t know where to start, and often delay setting up their portfolio until it is too late.

I provide my clients with the advice that they need to help them create and protect their wealth no matter what their age or where they are in life.

Book a free consultation to find out how you can get started.

01/12/2017

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