Sometimes a lot of deliberation about money ends in an either, or situation. This week is all about those dilemmas. Firstly, we think about monetising our podcast. It seems only logical that a podcast about money should make some money. Do we find a sponsor for the podcast or rely on our listeners for donations?
Our listeners have dilemmas about who to trust with their money, whether to buy the Preftrax ETF, how much should be invested offshore and how to handle different investment horizons. We manage to get around to all of this and to pontificate a bit, which is why this is another very long episode. It might be the new normal.
Lastly we are thrilled to find a happy retiree with an awesome name. Our stomach-dropping moment comes courtesy of John Morrison. He points out buying a living annuity is a decision worth millions. Why is nobody talking about this?
Please let us know if you have any strong feelings about podcast sponsorships. Also write in if you're happily retired. Remember, The Fat Wallet Show is a show about questions. Send all of this, and all your other random thoughts to ask@justonelap.com.
Kristia
Assuming your life went well and you made good decisions, you are now ready to retire. In addition to old-fashioned retirement products, you have a personal investment portfolio, a tax-free account filled to the brim with ETFs you love and some cash. Now what?
Selling shares for income can’t be a pleasant experience - especially when earning an income is no longer an option. You are eating into wealth accumulated over a lifetime. It’s easy to forget that this is what all that wealth accumulation was all about.
In this episode of The Fat Wallet Show, Simon and I discuss the 4% rule, so beautifully explained by our friend Stealthy Wealth here. Then we try to work out how you should go about deciding which assets to chop to make up the 4% you are allowed to take every year. We deal with the somewhat more philosophical problem of dying with your entire fortune intact and wonder if anybody actually knows a successful, happy, active retiree.
This episode is slightly longer than usual, because we also try to work out how to spot a scam and how to choose between different listed companies in the same industry. Somewhere in there I confess something that I’ve successfully kept under wraps for many years.
If you know of or are a successful retiree, please tell us your story. If you have a question, even if you think it’s stupid, ask us. You can do both of those things at ask@justonelap.com.
We are, as always, grateful for your time and attention.
We were thrilled to discover that our podcast has been downloaded 18 000 times since we kicked off in May last year. Excuse me a minute while I do a spastic dance where nobody can see me…
Okay, back to business.
Kids, death and taxes - three things Simon and I try to avoid at all times. This week we answer two listener questions about investing for children. Nolan hopes to leave his kids properties, but wants to avoid estate duties. Is this even possible?
Chantelle opened an Investec tax-free account for her two-year-old, but was told she’s not allowed to invest that money until her child is seven. This didn’t make a whole lot of sense to me. Seven years is a lot of investment time to lose out on. Luckily Simon knows how to get around this seemingly arbitrary limitation.
I’ve decided that it’s time to share all of the mind-bending money hacks our listeners have been sharing this year. I’m going to interview people whose personal finances inspire me. You might not think that personal finances can be inspirational, but you’d be wrong. You’ll see. If you think your financial management techniques can help others get a handle on things, write us at ask@justonelap.com.
If you love us and want to show it, please review us on iTunes. We’d really appreciate it.
Kristia