IOL Money - August 2021 - Women's Money Issues

IOL

MONEY AUGUST 2021

ISSUES Y E N O M ’S N E WOM

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CONTENTS FEATURES

REGULARS

5 women in financial services

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Covid fallout: advice for professional women

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Women should take advantage of their inherent investment instincts

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Should you splurge?

Or secure your financial future?

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Money Basics with Martin Hesse: Marriage contracts: what’s best for you?

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Money Quiz 18

Why more women should consider working in financial services

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Planning Perspectives with Palesa Tlholoe

Covid-19 and returning to work: can women have it all?

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Important contacts and links

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FROM THE EDITOR

A woman’s best protection is a little money of her own – CLARE BOOTHE LUCE an American author & politician

CONTACT US PUBLISHER Vasantha Angamuthu vasantha@africannewsagency.com MONEY EDITOR Martin Hesse martin.hesse@inl.co.za DESIGN Mallory Munien mallory.munien@inl.co.za PRODUCTION Renata Ford renata.ford@inl.co.za BUSINESS DEVELOPMENT Keshni Odayan keshni@africannewsagency.com SALES Charl Reineke charl@africannewsagency.com Kyle Villet kyle.villet@africannewsagency.com ENQUIRIES info@anapublishing.com

I AM of the “baby boomer” generation, the generation that saw the real emancipation of women in the workplace. Career opportunities dramatically opened up for women after the 2nd World War. But change never happens overnight, and the more fundamental the change, the longer it takes for well-worn practices to be eradicated. Practices that favoured men over women, which had become ingrained in society over centuries, still linger, and I reckon it will be quite a few years yet before gender discrimination in the workplace has fully worked its way out of business culture.

For example, while many companies have adopted an “equal work for equal pay” policy, the truth is that women are still being underpaid against their male counterparts and that corporate boardrooms are still dominated by men.

While there is still a long way to go, it is gratifying to see more and more women in top positions in the financial services industry (as illustrated in our feature on pages 4 & 5).

I believe, and have written on this before, that women bring qualities to a business that can enhance not only its profitability but its wider contribution to society.

This is especially true of the financial advice profession, where the role of the adviser is changing from a mere seller of products to a family consultant, who develops a long-term, deeply personal relationship with a client and his/her family. Women are proving to be topclass advisers, and I hope to see many more entering the profession. Go for it!

Martin Hesse

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SUCCESSFUL WOMEN IN FINANCE The financial services industry is still dominated by men, but it is transforming relatively quickly and opening its arms to women, who are increasingly enjoying successful and rewarding careers in the world of money.

By Martin Hesse

PAT MAGADLA

LELANÉ BEZUIDENHOUT

Pat has 17 years’ experience in the financial services industry, having worked for several large financial institutions spanning private client businesses, offshore multi-management, and local asset management firms.

In her current role, as senior business development manager for the Old Mutual Investment Group, her persuasive communication skills, incisiveness and strategic mindedness blended with technical investment knowledge help drive the organisation’s retail distribution strategy. Pat is enthusiastic about helping investors achieve their investment outcomes and believes that prudent financial management is an intersection of art and science. She also has a keen interest in empowering women to take charge of their financial wellbeing.

Lelané started her career in financial services in 1999 when she joined one of the large life insurers.

From 2006 she specialised in complaints resolution, and in 2010 she joined the office of the Ombud for Financial Services Providers as a case manager investigating complaints and preparing matters for the adjudication team. In early 2014 she joined the Financial Planning Institute (FPI) as certification manager and two years later she was promoted to head of certification and standards. A Certified Financial Planner professional, she is currently the CEO of the FPI, where she strives to ensure that the FPI delivers on its vision of “better financial planning for all”.

HESTER VAN DER MERWE After graduating with a law degree from the University of Pretoria, Hester worked in debt collection at Boland Bank. Later, working for attorneys who specialised in collecting micro loans, she realised how few people understand the documents they sign. In 2003, after having taken a step back from work to raise her children, she took a half-day job with a financial planner. She obtained a Postgraduate Diploma in Financial Planning and became a Certified Financial Planner … she had finally found her calling. Hester joined Ultima Financial Planners in 2015, where she focuses on practical advice, detailed planning and unwavering commitment to her clients. In 2020 she was crowned Financial Planner of the Year.

YOZA JEKWA Yoza qualified as a medical doctor from the University of the Witwatersrand in 1988 before switching careers to finance, completing an MBA in 2003. She was appointed joint managing director of Mergence Investment Managers in 2019 following 17 years of investment experience in private markets, and has just been appointed CEO. In her previous positions as senior dealmaker at Rand Merchant Bank and member of the Investment Banking Africa board, as well as in her role as principal in acquisition and leverage finance at Nedbank, Yoza gained solid experience in the financing of mid- to large-cap corporations in Southern Africa and Europe. She sits on the boards of Ascendis Health and Northern Platinum.

RAAZIA GANIE Raazia is head of investments at employee benefits firm NMG Benefits, which, along with NMG Capital and NMG Consulting, is part of the global NMG financial services group. She completed a BCom at UCT intending to become a chartered accountant, but was attracted to the investment industry. Her first position was in the investment business unit at Old Mutual. She later joined Fifth Quadrant (now Willis Towers Watson), which launched her career in asset consulting. She then went abroad, working at consultancies in London and obtaining the Chartered Financial Analyst accreditation. On moving back to South Africa, Raazia spent 10 years at Alexander Forbes as a principal consultant before taking up her current position.

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COVID FALLOUT: ADVICE FOR PROFESSIONAL WOMEN Drawing on her own experience, MARITSA DOYLE offers guidance to professional women facing the challenges the pandemic has thrust upon them.

THE repercussions of the Covid-19 pandemic have been felt by all. As much as one must acknowledge the immense impact on everyone, some of the hardest-hit must be women, and especially female professionals.

The recent National Income Dynamics Study/Coronavirus Rapid Mobile Survey painted a grim picture of the impact the virus had on women within the first month of national lockdown.

Although women represented about 47% of employment in February 2020, they accounted for approximately 67% of the job losses between February and April 2020, and the number remained unchanged by June 2020. Thus, of the three million jobs lost in this period, approximately two million were held by women.

Although subsequent reports showed that this has stabilised, there still no end in sight in terms of the

pandemic and no question that the pressure on female professionals remains. As we celebrate Women's Month, this got me thinking about professional women and the difficulties we experience during these challenging times.

BURNOUT IS REAL The pandemic has set back women and their seats at the corporate table in two respects. Women are struggling to juggle their lives and strive for some semblance of balance.

PwC’s Women in Work Index 2021, which measures female economic empowerment across 33 Organisation for Economic Cooperation and Development (OECD) countries, shows that “the damage from Covid-19 and government response and recovery policies is disproportionately being felt by women”. PwC’s researchers

predict that to undo the damage caused by Covid-19 to women in work – even by 2030 – progress towards gender equality needs to be twice as fast as its historical rate.

“Women carry a heavier burden than men of unpaid care and domestic work. This has increased during the pandemic, and it is limiting women's time and options to contribute to the economy. In the labour market, more women work in hard-hit human contactintensive service sectors – such as accommodation and food services, and retail trade. With social distancing and lockdowns, these sectors have seen unprecedented job losses,” says Bhushan Sethi, joint global leader, people and organisation at PwC. Although the study does not include South Africa, PwC South Africa’s chief economist, Lullu Krugel, says that “there are similar

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patterns in South Africa … where the pandemic has disrupted hundreds of thousands of women’s lives, as well as putting a damper on years of progress around gender equality”.

The shift to remote work for women has been a significant change, as we attempt to balance our responsibilities around the virtual office, children’s needs, holding the household together and providing a healthy meal on the table every night.

GIVING UP YOUR JOB? To women thinking of resigning and aiming for a life with more peace and balance, I have the utmost respect. My cautionary would be to consider your financial plan, by taking the following into account: ● Retirement: never take it for granted that your spouse is your retirement plan. In my experience, women need to remain in charge of their wealth and preserve their retirement savings accordingly. ● Will: ensure that your will

is updated and in place so that your dependants are looked after, especially with regard as to who will look after your children when you and your husband are no longer here. If you have minor children and would like to leave them a legacy, you can choose between a testamentary trust with a later age in mind or a beneficiary trust that will pay out at the age of 18. ● Insurance: update your life insurance and your disability and critical illness cover, ensuring that the beneficiary is wisely chosen. If a minor child is a beneficiary on a life policy and there is no provision for a testamentary trust or beneficiary trust in your will, this could lead to the proceeds going to the guardian. This may not be the outcome you had in mind. ● Savings and investments: when it comes to discretionary investments, investing in a diversified portfolio is important. You need to spread your risk between different investment vehicles, such as property,

offshore investments and local investments. It is never too late or too soon to start saving.

STAYING ON? To those, like me, who want a seat at the table, if they do not give you a seat at the table, bring a folding chair. Outsource the things that are not that important, so that you can focus on what is important to you.

Benjamin Franklin once said: “If you want something done, ask a busy person.”

Who better than a woman living a balanced life amid keeping fit and healthy, being a good mother, a compassionate partner, running a home, and being career-driven through it all.

We need more professional women in management positions, so during this Women’s Month, ladies, remember that behind every successful woman is herself.

Maritsa Doyle is a Wealth Manager at PPS Wealth Advisory.

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WOMEN SHOULD TAKE ADVANTAGE OF THEIR INHERENT INVESTMENT INSTINCTS JEANETTE MARAIS offers some guidance for women wanting to start their investment journey.

IN A world where a financial disparity between men and women still exists, women have some distinct advantages when it comes to investment.

We cannot deny there is still a financial earnings gap between men and women, especially when it comes to money. Yet, when it comes to investing, women have inherent advantages over their male counterparts.

In an episode of the money show Geldhelde on Via (DStv channel 147), we addressed this topic, looking at some of the traits women have that make us good investors and, importantly, how to harness them.

As a woman who has built her

career in this field, I can confidently say women should use their natural born talent for investment.

A 2019 study by the Warwick Business School found women outperform men by 1.8% on investment returns. They did this by analysing the behaviour and returns of 2 800 investors over three years by looking at a range of differences between the genders and investment behaviour.

The study shows that, generally, women tend to take a longerview perspective and trade less frequently. This reveals a more considered approach by women, with greater focus being placed on the realisation of a financial goal, rather than the thrill of investing.

If women opt to play to their strengths, they would soon realise these qualities have resulted in our superior investment prowess and form the basis of Momentum Investments’ underlying philosophy of outcome-based investing.

Staying invested over the long-term produces superior returns, which is why we follow an outcomes-based investment philosophy that aims to shift investors’ focus away from tracking performance and towards their personal investment objectives.

And when we consider the fact that we’re already on the financial back foot in terms of earnings, that we tend to outlive our male friends (so our money needs to last longer) and that we often need to juggle

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work, children, and other household responsibilities – the need for us to harness these inherent investment traits is even more evident.

So, for all the women out there who want to seize their natural investment power, here are five quick tips to kick off your investment journey: 1. ADVICE SHOULD COME FIRST Momentum’s Household Financial Wealth Index indicates only two in 10 women are likely to obtain professional financial advice. It is important for women to partner with a professional financial adviser or mentor that understands, respects, and takes their unique needs into consideration. This is the fastest and most reliable way to get on your journey to success.

2. MAKE BOLD CHOICES Historically there has been no better

way to grow your money than through investing.

There is no denying that investing comes with its share of risks – but, choosing not to invest is even riskier.

If you are just starting to invest, the best thing to do is to talk to your financial adviser to help you kick start your investing journey.

Chat to your adviser about the importance of building a diversified investment portfolio that includes investing a portion of your money offshore.

of their current fund performing poorly than as a result of another fund performing exceptionally well.

Even when the markets get rocky, try to stick with your investment strategy and portfolio choice.

There will be times when you have the urge to switch investment funds, but don’t chop and change – research says that in almost every case you’ll be worse off financially.

3. COMPOUND YOUR INTEREST The magic of compound interest will grow your investment exponentially over time. Bear in mind that you need a lot of time to achieve meaningful growth.

5. PAY OFF YOUR BOND Owning the house that you live in is the best risk-adjusted investment you will ever make.

So, paying a little bit extra on your bond every month is the right choice, but taking extra money out of your bond and spending it on consumer goods is a poor financial decision.

4. AVOID THE SWITCH ITCH Investors are two-and-a-half times more likely to switch funds as a result

Jeanette Marais is deputy CEO of Momentum Metropolitan and CEO of Momentum Investments.

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Rands & Sense

SHOULD YOU SPLURGE? OR SECURE YOUR FINANCIAL FUTURE?

Sisandile Cikido

SOME would say that saving and proactively investing was an easier discipline to manage in years gone by. Enter 2021, where social media and the pressure to “keep up with the Joneses” – or would that be the Kardashians – have turned us into a nation drowning in more debt than we realise.

Most South Africans have reached a crossroad in their financial journeys, which is why it has become crucial for consumers to take an honest look at how they manage their money and be more conscious of the choices they make.

While there is nothing inherently wrong with consumption – it is a key driver of economic growth – rampant consumerism at a large scale is unsustainable. The good news, however, is that it is possible to change this scenario and transform our reality from one of bills and financial stress to a healthy relationship with our money – and a more sustainable financial future.

Here are four easy and effective tips on how to make better money choices:

in the pursuit of a longstanding personal dream that is outside of your current career path, but truly makes you happy. The point is, next time you want to splurge on a social media fad you don’t really even need, compare the price of the item to an intangible investment, such as education or an additional contribution to your investment account, and choose the wiser option – you will thank yourself later down life’s path for making that decision, it’s like a love letter to you from you.

1. Small changes can make a big difference Yes, it is hard to save in these tough times. But consider just how much that R30 visit to the coffee shop every morning is affecting your overall financial outlook. Add up all those days and you’ll see that it’s actually costing you just under R1 000 a month. This is money you could be spending on getting yourself out of debt or investing into a better future for you and your family.

4. Use the right tools Even with the best intentions and sacrifices, your money management journey won’t take you as far as you dreamed without the correct investment vehicle. Elements to consider when putting your money away include costs such as management fees, administration fees and capital gains tax. Choose an investment product that offers competitive returns and make sure that the product you choose works for you. Putting your extra cash to work in a bank fixed deposit, for example, could earn you significant interest over an investment term of up to 60 months, from as little as R1 000.

2. Carefully consider that splurge Loving those sneakers you saw on the gram? What if you signed up for that short course instead? Also, instead of bagging those same sneakers, you could even invest

3. Life is so much better when it’s lived without regrets Think back to the December holiday you spent house-bound while your friends on social media made you green with envy from all their vacation posts. Now, think back to all those weekend nights you spent partying the night away that same year with … those same friends. It’s not about completely doing without, but rather cutting back a bit to pay for the holiday you were dreaming of going on.

Sisandile Cikido is head of retail investments at Nedbank

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MONEY BASICS

with MARTIN HESSE

MARRIAGE CONTRACTS: WHAT’S BEST FOR YOU? TYING the knot is a big deal, and it's not just about choosing a partner who loves you and will complement you and bring out the best in you. Financially it's one of the most important decisions of your life.

You know what they say about important decisions, right? The more information you have, the more considered and balanced a judgement you will be able to

make. If things turn out badly, you will not be able to say you weren't aware of the possible consequences.

For example, if the man you are marrying physically abused his previous girlfriend, it's better you know that upfront. Having that knowledge, you may still decide to marry him, but at least you will have factored possible negative outcomes into your decision.

And so it is with the type of marriage option you commit to, of which there are three: 1. IN COMMUNITY OF PROPERTY This is the default option – it doesn't require you to go to a lawyer and have anything drawn up. Under this option, you and your partner combine what each of you own into what is known as

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a "joint estate", of which you each have a 50% share. Everything either of you acquires during marriage also goes into this joint estate. Like each of the three options, this has its pros and cons.

It's equitable if you both start off with relatively nothing. But it's not so equitable if one partner is much wealthier than the other. Another thing: you don't only share in what you own, you share in you owe! If your partner has big debts before getting married, you get to share them once you become a couple.

2. OUT OF COMMUNITY OF PROPERTY WITHOUT ACCRUAL This requires a legal contract, known as an antenuptial contract, to be drawn up by a lawyer and signed by each of you prior to your wedding. This option is essentially the exact opposite of being married in community of property. You own your things and your partner owns his things and it stays that way throughout your marriage. On the

negative side, if you have little to begin with and don't accumulate much of your own during your marriage, you will be left with very little in the case of a divorce. This could happen if, for example, you gave up a career to raise children – the time and effort you spent raising the children has no monetary value.

On the plus side, you are protected from your partner's debts.

3. OUT OF COMMUNITY OF PROPERTY WITH ACCRUAL This is the "middle road" option, which combines aspects of the above two options and which is favoured by most couples nowadays. It also requires you and your partner to sign an antenuptial contract, and if the contract does not specifically state "without accrual" (option 2), it is the default contract. You draw up a list of things you own, including any savings or investments you have (known as your assets) and your debts (your liabilities). You retain in your estate the value of those assets,

but any assets that accrue to either of you during your marriage will be split 50-50 on divorce.

Say your pre-marital assets come to the value of R80 000, and his come to R160 000, and during your marriage you acquire assets to the value of R1 million.

On divorce you will get your R80 000 + R500 000 (half of the R1 million you both acquired) = R580 000. He will get R160 000 + R500 000 = R660 000. (This is a simplification, because inflation is also taken into account.) However, like option two, the accrual system does not apply to debt. If your partner notches up personal debts, they are his alone.

For more on the financial implications of different types of partnerships, including living together unmarried, read “Head over Heart” by Roz Wrottesley in the 3rd-quarter edition of Personal Finance quarterly magazine, on the shelves at selected retailers from mid-August.

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VICTORIA REUVERS says women continue to be under-represented in the financial services industry, but those who have entered it are reaping the rewards of a fulfilling career.

WHY MORE WOMEN SHOULD CONSIDER WORKING IN FINANCIAL SERVICES IT HAS been widely published that the representation of femalerun funds, financial advisers and investment teams over the past decade has been relatively consistent in that women continue to be under-represented.

This is, of course, a serious issue that deserves attention and we need to work harder to continue to attract women to the financial industry.

According to Morningstar’s research, only around 11% of South African fund managers are women.

And in the UK, Morningstar data shows there are more funds run by men named Dave than there are female fund managers in total.

It’s a stark reminder of the lack of diversity across the fund industry.

Long-term investing is far from the macho image portrayed in movies, and firms should look at ways they can help to change this,

starting with job descriptions and with females in the industry sharing their success stories.

I spoke to a few of the female advisers that partner with Morningstar Investment Management South Africa to share their experience of the financial industry.

The feedback received painted a very interesting picture. The most prominent was how rewarding it is for women to work in the industry.

I’ve highlighted a few key takeaways below, of why more women should consider a career in financial services. ● Financial planning and advice enable you to make a difference, while earning a living. Being a financial adviser enables you to make a meaningful impact on the lives of your clients. By helping your clients to understand how to work with

their money and make their money work for them, you can truly have a positive impact on their lives.

The great part about finance is the numbers don’t lie – when you see your client celebrating a savings goal that had been reached, it’s very rewarding to know you helped them reach that goal.

“I joined the industry wanting to make a meaningful impact on people’s lives. Something that would enrich my soul whilst earning a living. I wanted to help people realise that through taking the time to understand their relationship with money, they could see money as their enabler, and thus something that they could control, rather than letting their money control them.”

– Tessa Lefrère, Certified Financial Planner (CFP), Resolute Wealth Management

15 ● It is both pencil skirts and sneakers.

Contrary to popular belief, working in finance can offer the flexibility of hours, being your own boss, owning your own business, managing your own time and engaging with people regularly.

The world of finance isn’t only filled with women doing presentations in tight pencil skirts and high heels.

The fantastic part is, that if you would like to do that, you most certainly can! But, if you would prefer to ditch the heels for a pair of sneakers, that’s perfectly fine as well. There is room for individualism and to do things your own way.

“I enjoy the fact that I have my own business, I’m my own boss and I manage my own diary. As a mother, this is priceless.” – Cilma Sorour, CFP, Alchemy Financial Solutions ● If you are a people’s person, working in finance is a great career choice.

Having a keen interest in markets, the economy and investments is most certainly a massive plus.

However, the female advisers I spoke with said that working with people is one of the aspects of the industry they enjoy the most.

In addition, being invested and caring about their clients is their most valuable and differentiating quality as an adviser.

“Over the years I kept choosing to work with people more than portfolios and hence I’m now in the financial partnership role with our clients. However, I also love the complexity and the challenges of the investment environment.” – Sunél Veldtman CFA, CFP, chief executive of Foundation Family Wealth

● Females in finance support each other.

It might be known for being male dominant, but the women in the financial industry are proud to support each other, empower one another and there are several “Women in finance” groups that aim to facilitate growth, partnership and collaboration between women in the industry.

“Apart from helping my clients, I spend a large part of my time teaching and sharing this knowledge with other financial planners so that they too are upskilled to help their clients with their money relationship. I view this as a value-add to clients in the financial planning industry.” –

Kim Potgieter, CFP, marketing and life planning director, Chartered Wealth At Morningstar Investment Management South Africa we strive for a diverse team. When it comes to gender, our team in South Africa is made up of more than 50% women. The advantages of greater institutional diversity are well researched and documented. If the Covid-19 pandemic has shown us anything, it’s that what we thought was “normal” and “unchangeable” is, in fact, hugely open to change, in the most positive way.

Victoria Reuvers is managing director of Morningstar Investment Management SA.

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COVID-19 AND RETURNING TO WORK: CAN WOMEN HAVE IT ALL? Having a rewarding career and a balanced home life are not mutually exclusive goals, says a leading woman in the insurance industry.

FOR many women, working from home during the height of the Covid-19 pandemic has given them a better chance at managing work-life balance, but for others it has only served to highlight the inequalities between men and women when it comes to balancing

household chores and work demands. Now that there is some optimism given the vaccine rollout, we may see women heading back to work, but the question is: how will it affect women who value having careers and a balanced home life? “Many women want it

all. They want a career while at the same time wanting to be a good partner and mother. While we are by nature great multitaskers, when attempting to juggle so many balls in the air, eventually something has to give,” says Christelle Colman, managing director of Elite Risk

17 Acceptances, a subsidiary of Old Mutual Insure.

As the country observes Women’s Month, it is important to spotlight gender inequality, unequal access to child care, return to in-person work mandates and vaccine access, which are among the many issues surrounding the return to work question for women.

Research suggests that the flexible working hours adopted while working from home may increase work or family conflict by increasing the domestic responsibility burden for women, especially those with young children.

“Although the aim of introducing flexible working hours was to improve one’s work-life balance, it did not necessarily result in the advancement of women’s careers to senior levels. The benefit to organisations was simply the retention of women at lower management levels,” says Colman.

Now, across the world, there are signs the pandemic could push more women to the sidelines. Millions of women in the United States alone dropped out of the workforce during the pandemic – often to take care of their kids due to a lack of other options.

They could now be facing the possibility of earning less when they return.

In fact, in September 2020, 863 000 women decided to quit their jobs compared to 168 000 men, as mothers across the income spectrum were forced to take on additional childcare responsibilities as schools and day care centres closed. Returning to work after time off means incurring new child care costs as well as the very real prospect of a reduction in salary.

A double whammy, if you will.

Already before the pandemic, it was estimated it would take 150 years to close the gender inequality gap, according to the World Bank.

Does this mean that women will

have to choose between having a career or having a work-life balance?

“No, it does not. Remember, it is important to be realistic in order to be successful,” says Colman, adding it is possible, even in a post-pandemic world, to maintain a healthy work-life balance while in pursuit of breaking through the corporate gender imbalance.

Below are Colman’s top tips on how to return to work in light of the added pressure women face in balancing work and life from the kitchen table or home study.

understand your unique challenges as a woman in business and they will provide support through trying times. Second, up your professional social media game by expanding your network by reaching out to people you admire for virtual coffee chats and to engage in the plethora of digital industry events.

Make an effort to connect and grow given that so much of our world is now around personal connection online. Doing this may open up new opportunities for you.

3. GET UP, DRESS UP AND SHOW UP! Being a working mother means that 1. HAVE THE DISCUSSION we have no time. If you are clear on ABOUT WORK AT WORK your personal fashion style and you It is important for organisations to keep it simple, your life will be so have the gender discussions now and to not shy away from doing so. much easier. But be careful of falling into the trap of working remotely It is up to women to ensure that in sweats and hoodies. Never they are not out of sight and out of before has appearances been more mind, to embrace technology and important. Yes, you can switch the ensure connection at the correct camera off, but as a professional level with decision makers. If you you are losing out on the most are concerned about returning to fantastic opportunity to build your work, speak up. personal brand. Get up, dress up and show up. In a world where we 2. KNOW THE POWER OF LEVERAGING YOUR NETWORK are disconnected, using the gift of shared screen time is a precious First, make time and effort to join one you should not disregard. a female networking club. Here you will find like minded women to network with, who will also Supplied by Old Mutual

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Money Quiz Test yourself on your financial knowledge 1. Which of these is good debt? a) Personal loan b) Business loan c) Car finance d) Credit agreement on a flatscreen TV

6. Which government department is responsible for customs and excise? a) The SA Reserve Bank b) The Department of Trade and Industry c) The Financial Sector Conduct Authority d) The SA Revenue Service

2. Which type of fund is not available as a retail unit trust fund? a) Private equity fund b) Money market fund c) Multi-asset fund d) Global equity fund

7. Who is the new Minister of Finance? a) Muvhango Lukhaimane b) Tito Mboweni c) Enoch Godongwana d) Edward Kieswetter

3. Which type of fund has the lowest risk profile? a) Money market fund b) Multi-asset fund c) Real estate fund d) Global equity fund

8. Roughly what percentage of total revenue for the state does personal income tax constitute ? a) 18% b) 25% c) 38% d) 55%

4. After whom is a pyramidtype investment scam named after? a) Charlie Chaplin b) Charles Dickens c) Charles Ponzi d) Charles Darwin

9. Which of these women is CEO of the Financial Planning Institute? a) Hester van der Merwe b) Lelané Bezuidenhout c) Pat Magadla d) Yoza Jekwa

5. Which of these companies recently unlisted from the JSE? a) Pick n Pay b) Bafokeng Platinum c) First National Bank d) Pioneer Foods

10. In which city is Wall Street, home of the world’s largest stock exchange? a) New York b) Geneva c) London d) Washington DC

ANSWERS: 1b, 2a, 3a, 4c, 5d, 6d, 7c, 8c, 9b, 10a.

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Planning Perspectives

WOMEN ARE ACTUALLY GREAT, CONFIDENT INVESTORS

Palesa Tlholoe

When I started in this industry almost 10 years ago, I would walk into a room filled with bald heads and feel lost. No wonder there are so many stereotypes about women and investing. How can we expect women to feel comfortable to engage in frank discussions about something so personal with people they cannot relate to?

If you type “Wall Street” or “JSE” into Google, 99% of the faces you’ll see are male. This is one of the many ways the universe is telling us the investment world does not belong to females.

There’s also a plethora of articles explaining why women don’t invest in stock markets. Instead of focusing on the urgent need for transformation in the sector, these articles repeat tired stereotypes which claim women lack investing confidence and are risk averse.

As more and more women occupy technical, senior roles in the investment profession, I am hopeful this narrative is starting to shift. Seeing the JSE lead the pack with a female chief executive, Dr Leila Fourie, (who succeeded another woman, Nicky Newton King) and the Financial Planning institute being helmed by Lelané Bezuidenhout, gives me a lot of hope.

The presence of female CEOs, female fund managers, female stockbrokers and female financial planners is a vital confidence booster for aspiring female investors.

We can now confidently bust the stereotypes about female investors because we know being historically excluded by the system has not stopped women from investing.

Women have, in fact, been great, confident investors for decades.

Some women have invested informally through stokvels and other community-based organisations, while others have founded formidable investment companies.

Such heroes include Zanele Mbeki and Tania Slabbert who founded WDB Investment Holdings in 1996;

Salukazi Dakile-Hhlongwane, Jean Ngubane and Dawn Mokhobo, who founded Nozala Investments in 1996; and Nomhle Canca, Louisa Mojela, Wendy Luhabe and Gloria Serobe, who founded Wiphold in 1994.

WHY WOMEN MAKE GREAT INVESTORS Research shows women often enjoy superior investment outcomes to men. This is attributed to the fact women tend to possess the skill and the attitude needed for successful investment outcomes. Women are typically adept at: ● Creating clear goals for their investments (a vision board). ● Doing the research, which enables them to adopt a long-term view that anticipates short-term fluctuation. This allows them to benefit from compound interest while avoiding the costs that come with timing the market. ● Embracing a holistic approach to investing that doesn’t only focus on returns, but also on the appropriate level of risk for the investment term and the financial resources available. ● Being patient and having the right level of confidence. While men tend to be overly confident and make quick investment decisions with inappropriately high levels of risk, women usually take time to ask the right questions and are better at exercising patience.

WHAT ARE YOU WAITING FOR? If the points highlighted above sound like you, then there’s no excuse not to get started on your investment journey. I’d strongly recommend seeking advice from an FPI-affiliated financial planner who can help you in a way that matches your appetite for risk and your life stage. Even natural born investors can do with a little bit of coaching!

Palesa Tlholoe CFP is Co-Founder and Wealth Manager at Imvelo Wealth and Brand Ambassador for the Financial Planning Institute

INFORMATION

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Here are sources that can help you with financial education, give you more information on savings and investments, and afford you recourse if you have a consumer complaint or a complaint against a financial services provider

FINANCIAL EDUCATION Financial Sector Conduct Authority MyMoney Learning Series https://www.fscamymoney.co.za South African Savings Institute #WaysToSave https://waystosave.co.za/ BANKING Ombudsman for Banking Services ShareCall: 0860 800 900 or phone: 011 712 1800 Email: info@obssa.co.za www.obssa.co.za CONSUMER ISSUES National Consumer Commission Toll-free: 0860 003 600 or phone: 012 428 7000 Email: complaints@thencc.org.za www.thencc.gov.za Consumer Goods and Services Ombud ShareCall: 0860 000 272 Email: info@cgso.org.za www.cgso.org.za

FINANCIAL ADVICE Ombud for Financial Services Providers phone: 012 470 9080 or 012 762 5000 Email: info@faisombud.co.za www.faisombud.co.za INVESTMENTS Financial Sector Conduct Authority ShareCall 0800 110 443 or 0800 202 087 info@fsca.co.za www.fsca.co.za LIFE INSURANCE Ombudsman for Long-term Insurance ShareCall 0860 103 236 or phone: 021 657 5000 Email: info@ombud.co.za www.ombud.co.za MEDICAL SCHEMES Council for Medical Schemes MaxiCall: 0861 123 267 Email: complaints@medicalschemes.com or information@medicalschemes.com www.medicalschemes.com

Credit Ombud MaxiCall: 0861 662 837 or phone: 011 781 6431 Email: ombud@creditombud.org.za www.creditombud.org.za

RETIREMENT FUNDS Pension Funds Adjudicator ShareCall: 0860 662 837 or phone: 012 346 1738 Email: enquiries@pfa.org.za www.pfa.org.za

National Credit Regulator ShareCall: 0860 627 627 or phone: 011 554 2600 Email: complaints@ncr.org.za or (debt counselling) dccomplaints@ncr.org.za www.ncr.org.za

SHORT-TERM INSURANCE Ombudsman for Short-term Insurance ShareCall 0860 726 890 or phone: 011 726 8900 Email: info@osti.co.za www.osti.co.za

TAX Tax Ombud ShareCall: 0800 662 837 or phone: 012 431 9105 Email: complaints@taxombud.gov.za www.taxombud.gov.za PROFESSIONAL ORGANISATIONS Fiduciary Institute of Southern Africa (FISA) phone: 082 449 2569 Email: secretariat@fisa.net.za www.fisa.net.za Financial Planning Institute of South Africa (FPI) Phone: 011 470 6000 Email: info@fpi.co.za www.fpi.co.za South African Institute of Tax Professionals (SAIT) Phone: 012 941 0400 Email: info@thesait.org.za www.thesait.org.za FINANCIAL DATA ◆For ◆ the latest financial market indicators, go to https://www.iol.co.za/businessreport/market-indicators ◆For ◆ the latest quarterly unit trust performance, go to https://www.iol.co.za/ personal-finance/collective-investments ◆To ◆ look up performance of a particular unit trust fund go to https://www.iol.co.za/ personal-finance/fund-look-up