In our previous post, we explored how actively managed funds can provide agility and the potential for higher returns. However, the success of an active strategy depends heavily on the skill of the manager. Not all funds are created equal, and “fee drag”—the impact of higher management costs—means you must be selective. Here is how to evaluate whether an active fund earns its place in your portfolio. 1. Look Beyond the Track Record While historical performance […]
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Six tips to improve your credit rating
Your credit score is a rating that banks and other financial institutions use to determine how much money they can lend you, and at what interest rate. It has a huge impact on your financial health and on your life in general. Home loans, cell phone contracts, car finance… These all hinge on your credit score. Why is a good credit score important? You get access to more credit, and you qualify for better interest rates. […]
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Ensuring Your Children’s Future: Our Guardianship Solution
If both parents of a minor child pass away simultaneously, several critical issues arise: Minor children cannot directly inherit cash. Identifying who the deceased parents appointed as guardians in their wills. Ensuring the appointed guardians have enough financial resources to care for the minors. Confirming if there is a guardianship agreement between the deceased parents and the appointed guardians. At EFS, we have developed a cost-effective solution to address all four of these problems. Contact us […]
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Ensuring Your Legacy: Understanding Estate Liquidity and Securing Your Future
Estate liquidity is vital for ensuring that your estate can cover all financial obligations upon your passing. This includes debts, estate duties, taxes, and executor’s fees. Without adequate liquidity, the executor may be forced to sell assets at less-than-optimal prices, which could negatively impact your heirs. The best method to address a liquidity shortfall is life insurance payable to the estate. It is considered one of the most effective tools due to its ability to provide […]
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Understanding credit reports
WHAT THEY ARE AND WHY THEY MATTER A credit report provides a detailed overview of an individual’s credit history, encompassing their payment history, credit limits, and types of credit accounts. This document is crucial because it is used by lenders, landlords, and various other entities to assess creditworthiness and make decisions about extending credit or approving applications. For lenders, typically banks: Lenders rely on credit reports to gauge the likelihood of an individual repaying debt. This […]
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Life cover: How much is enough?
Life cover pays out tax-free in the event of the life insured’s death. At EFS we calculate how much life cover you need, considering the following factors: Your debt. We also recommend settling your spouse’s or partner’s debt. Master’s fees. Taxes such as capital gains tax, income tax and estate duty. Executor’s fees (currently a maximum of 3.5% plus VAT, 4.025% including VAT. Administration fees such as transfer costs on fixed property, bond cancellation costs, advertising, […]
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The importance of a Life File
What is a life file and why does everybody need one? Our world is fast changing especially because of the COVID-19 epidemic of the past number of years. We have become a lot more aware of our mortality – more so than most could have ever imagined before this pandemic. We face an uncertain future. Political upheaval and financial uncertainty are adding to our stress. At EFS we believe these factors present an even more compelling […]
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A living will
A living will is a legal document that sets out your wishes for your healthcare when you cannot share them yourself. It guides your family and healthcare providers when you are not in a condition to make decisions or express your wishes. The document gives instructions for not being kept alive through expensive life-support or other artificial medical interventions when there is no hope of recovery and death is inevitable – for example, if someone is […]
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Cyber fraud is increasing massively!
There have been increasing instances of fraudsters impersonating financial services providers to get hold of their clients’ personal information via SMSs, fake websites, emails, and phone calls. In this vein, phishing SMSs and emails are being sent by fraudulent third parties to a random recipient list. The SMS attempts to trick clients into believing that they have a claim, or that their security has been compromised, and requests the recipient to contact a specific number (that […]
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The importance of an emergency fund
As the name indicates, an emergency fund is an investment or bank account that provides funds in the event of an emergency, such as car repairs, temporary unemployment, medical expenses not covered by medical aid, etc. During COVID many people realised just how crucial an emergency fund can be. It is recommended that you have between 3 and 6 months’ net income in the fund. In other words, if your net (after tax) income is R20 […]
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