Beyond Financial Planning: Unpacking the Power of Wealth Management

Gone are the days when wealth management was seen as managing investments only for the wealthy and famous. Today, it is a sophisticated orchestra, expertly blending financial tools with life goals, risk tolerance, and individual aspirations. It is a journey, not a destination, guiding rich and ordinary individuals and families alike towards long-term financial security and helping them fulfil their dreams.

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Financial Planning I Your Financial Future

The Power of Professional Financial Planning


To reach your desired outcomes, it is vital that you plan the route you wish to follow, and financial planning is one of the most important facets of your future outcomes. It is often said that proper planning prevents poor performance; whilst financial planning does not take place on a sports field, everyone wants to live with confidence, secure in the knowledge that they have the measure of their financial strength as they prepare for their retirement years.

With this in mind, in this article, our certified financial planning professionals at Efficient Wealth offer a few hints and tips to plot a course for your financial future and to prepare for life’s unexpected occurrences. Moreover, we will briefly delve into the crucial concept of financial planning and how it can pave the way for you to a secure and prosperous future.

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Life Assurance I Life Cover

Is Life Assurance Still Seen As a “Grudge Purchase?”

Before the COVID-19 pandemic, the question of whether life assurance was a ‘grudge purchase’ or not was often debated. Following COVID-19, the argument is becoming more heated both for and against these products and services.

During this tragic time, living in the age of the ‘new normal’ has made many people aware that it is sometimes difficult to adjust to and recover from losses, both emotionally and financially, and that life can take unexpected turns at any time. Even after a few years of adapting to COVID-19, the reality for some South Africans remains falling seriously ill for lengthy periods, having loved ones pass away prematurely, losing jobs, or having to close businesses.

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Wealth Management I Financial Services

What You Need to Know About Wealth Management

Wealth management can be a complex topic, but understanding the basics equips you to make informed decisions about your financial future. It is a comprehensive service that helps individuals and families achieve their financial goals. It encompasses a wide range of services, including financial planning, investment management, tax planning, and estate planning. Wealth managers work with their clients to develop a personalised plan that takes their individual circumstances and goals into account.

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Financial Consultants I Personalised Financial Advice

The Impact a Financial Consultant can have on your Personal Finances

Financial consultants assist you to develop a financial plan that meets your individual goals, identifies and manages risk, and helps you to make informed investment decisions. These professionals can have a significant impact on your personal finances – electing to work with one can improve your financial well-being and help you achieve your financial goals, needs, and wants more easily.

In this article, our financial professionals at Efficient Wealth will explore the insights that financial consultants can bring to the table and how they can guide you out of the red and into a successful financial future.

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Expert financial advisors: 5 ways they can help your small business thrive

Are you thinking of opening a small business? Partnering with an expert financial advisor can set you on your way toward financial success. In the beginning, it is about being passionate about your products and services, gaining and retaining customers, ordering stock, and a plethora of other things seemingly more important than balancing the books.

Opening a new business, or trying to manage an existing one, presents a veritable minefield of challenges that you need to overcome. It can be an overwhelming conundrum, a feeling similar to going on an African safari without sorting out the logistics or retaining an experienced professional to guide you.

However, the advice of professional financial advisors will make the challenges less daunting and, through the services that they offer, you can implement practices to grow your business.

In this article, we will explain a few services that we offer and why you may need them for your business:

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The Value of Partnering with an Expert Financial Advisor

If dreaded disease cover is left disregarded and you or a loved one is diagnosed with a serious ailment, it could lead to financial distress or even bankruptcy.

The long-term effects of the tightening cycle

Dr Francois Stofberg
Managing Director: Efficient Private Clients.

The global economic landscape has been experiencing a tightening cycle for roughly a year, and it is becoming apparent that its effects are both spreading and deepening as disequilibrium becomes more apparent. Recently, we have also experienced that the banking system is likely to be a contributor to the damage being done. The flow of liquidity from cash and credit to assets and spending is critical to the success of economies, and the combination of central banks raising interest rates and draining reserves, coupled with banks experiencing more constrained deposit and capital conditions and tightening credit standards, is likely to constrain the flow of money and credit to markets and economies. This, in turn, is likely to have a detrimental impact on spending and income.

Three major equilibriums and two major policy levers interact to drive markets and economies. The first equilibrium in the rich world is spending and output in line with capacity, which roughly translates into approximately 2% real growth with 2% inflation, a nominal spending growth rate of 4% to 5%, and an average unemployment rate. The second equilibrium is that debt growth must be in line with income growth, meaning credit growth that is not too high or too low, with interest rates that act as neither a major incentive nor disincentive to borrow. The third equilibrium is a normal level of risk premiums in assets relative to cash, meaning that bonds provide an expected return above cash, and equities an expected return above bonds, commensurate with these assets’ risks. The two policy levers are monetary policy and fiscal policy. The economic and market swings that we see reflect the never-ending struggles of the marketplace and of policymakers to achieve equilibrium. In the West, we are far from equilibrium, while in the East, we are closer to it. The closer an economy is to equilibrium, the easier it is to fix problems and the lower market volatility.

In developed economies, high nominal spending, when compared with the ability of an economy to produce more, remains the greatest disruption to equilibrium today. This leads to inflation that is significantly above target, leading to big policy shifts and high market volatility. Despite aggressive policy action, the United States (US), Europe, and the United Kingdom (UK) have not moved much closer to equilibrium. On the margin, the nature of the disequilibrium has shifted from too much inflation to not enough growth, with the risk premiums on assets decreasing relative to cash.

The path from disequilibrium to equilibrium allows for big market swings. When looking at why the economy is in bearish disequilibrium, we see that inflation is too high. Nominal spending, in turn, is too high to bring inflation down and unemployment is too low to bring wages down, and despite nominal growth being too high, the real growth rate is lower than desired. In the end, a weaker real growth rate, that is, an earnings recession of sorts, is required to resolve the other imbalances.

In conclusion, the effects of the recent tightening cycle are spreading and deepening, and the damage to the banking system is a manifestation of this tightening. Markets are in disequilibrium and the high level of nominal spending remains the greatest disruption to equilibrium today. Despite aggressive policy action, the US, Europe, and the UK have not moved much closer to equilibrium. The path from disequilibrium to equilibrium allows for big market swings, which is a frame of reference for longer-term positioning. It is thus crucial for policymakers and market participants to remain vigilant and proactive when managing these risks and when taking steps towards a more stable and sustainable economic environment.

Dreaded Disease Cover

Should You Add Dreaded Disease Cover to Your Portfolio?

It is often spoken about in confidence or not spoken about at all. But dreaded disease cover is a subject that should be addressed far more often. If left disregarded and you or a loved one is diagnosed with a severe illness, it could lead to financial distress or even, in a worst-case scenario, bankruptcy. Read more

Dreaded Disease Cover

Dreaded Disease Cover – The Sensitive Issue

Discussing dreaded disease cover is always a sensitive matter, after all, you’re discussing the potential premature passing of yourself or a loved one. However, ignoring it all together could be financially debilitating or even, in a worst-case scenario, lead to bankruptcy. As a result, it should at the very least, be investigated.

The Scary Statistics

It is unfortunately estimated that one in eight people will contract cancer, and one in five will suffer from one of the “Big Four” serious illnesses before the age of 65. The Big Four is commonly referred to as heart attacks, coronary disease or bypass surgery, strokes, and cancer. The latter is the leading cause of claims against dreaded disease cover.

For the most part, dreaded disease cover, also known as critical illness insurance, can protect against other serious ailments. For example, kidney or chronic liver failure, rheumatoid arthritis, respiratory failure, and major organ transplants among a host of others. Be sure to read the fine print of these policies to determine the percentage payouts per diagnosis and which of them are covered.

How it Works

Once insured with dreaded disease cover, it provides financial protection if diagnosed with a critical condition. Whether the diagnosis is poor or not, upon accepted diagnosis, the payment will be provided, tax-free, either as a lump sum once-off payment or paid out monthly.

Once in receipt of this money, it can be used for immediate or long-term treatment that is not covered by medical aid. It can also be used as travel expenses for overseas treatments, home renovations to improve quality of life, or as a monthly instalment to maintain living standards in case of lost income.

Dreaded disease cover is, not always, but usually linked to a life assurance policy and oftentimes expires or has reduced benefits once the recipient has reached an agreed-upon age.

Will it Reduce My Life Assurance?

There are two basic options for dreaded disease cover. Accelerated or stand-alone benefits. As its name suggests, the stand-alone option doesn’t affect your policy. It does, however, result in being more costly than the alternative. Accelerated benefits are offset against your policy and will affect it proportionately with drawings taken against it.

How Much does it Cost?

There are different levels of dreaded disease coverage. It is a costly investment, however, the policyholder may elect to diversify their policy requirements in line with personal health conditions or family history, thereby reducing the number of illnesses to be covered. Thus making it more affordable.

But, there are more comprehensive options that include a complete range of conditions. Some policies would insure conditions not associated with the listed events stated in the policy. Some institutions may offer added benefits, for example, intensive care, early cancer, or relapse cancer treatments.

Where to Turn?

Efficient Wealth of course. We understand that the dreaded disease cover is a controversial subject. But, we can offer peace of mind with minimal waste and maximum protection.

Efficient Wealth is a place of trust, where approachable humans deal with real human issues. Dreaded disease cover is an essential element in any future-fit financial plan and, although costly, it could end up saving many investments.

Should you be investigating the benefits of dreaded disease cover, consult with Efficient Wealth. We offer a vast range of options, giving you freedom and flexibility in finding the most relevant risk solution.