The Fat Wallet Show from Just One Lap
About This Show
The Fat Wallet Show is a show about questions. It’s about admitting that we don’t know everything, but that we’re willing to learn. Most of all, it’s about understanding as much as we can to make us all better investors.
Phrases like, “I’m not sure” or, “Let me look that up and get back to you” or, “I don’t know” don’t exist in the financial services industry. If you ever had a financial question you were too embarrassed to ask, you know what we’re talking about. In this business, appearances matter, and nobody wants to seem like they don’t know how things work or what the outlook is for the buchu industry. It’s easy to excuse that little vanity, except that people in the investment industry are meant to service investors - people like you and me who need to figure out what to do with our money.
There’s no such thing as a stupid question in this show. If you have unanswered financial questions, this is your opportunity to have them answered in a way that even I can understand. Pop them to us at email@example.com.
Hosted by Kristia van Heerden and Simon Brown.
Most Recent Episode
#65: Capital gains and inflation
3 days ago
Investing can be overwhelming because there are so many moving parts. You need to understand what a broker is and then make a decision about which one to use. You need to familiarise yourself with investment products like index-tracking funds and then make a decision about whether to go that route or invest in individual companies. If you go for individual companies, you can easily spend the rest of your life pouring over company results and reading SENS announcements. All of this happens before you even buy your first investment. Once invested, things get even more hairy. Fees are always a big concern, followed very closely by capital gains and dividend withholding tax. More often than not there seems to be no good reason for market movements (although there’s no shortage of experts who will dream up reasons). Political events can have a huge impact on a portfolio. Economic conditions reflect in your portfolio long after real economy has gone in a completely different direction. Add, on top of all of this, currency moves and inflation and it’s little wonder that the decision to start investing can take years. In this episode, Simon and I discuss the impact of inflation on capital gains liability. I realise there’s something that will impact my investments that I’ve literally never thought about. The worst part is there’s nothing to be done about it. André du Toit’s spreadsheet that takes into account inflation can be downloaded here. Thanks very much, André. CGT Local vs Offshore revisited Links and resources Our Fat Wallet Listener Love Index has been flirting with, but not quite committed to, being 3% in the hole. This displeases me. We don’t advise opening a tax-free investment for a child’s education. The video below has everything you need to know about tax-free accounts. Kris