Monthly Archives: February 2022

After graduating from college, Michael and Olivia Zuber thought they were doing everything right.

"We got advanced degrees, we got good jobs, and we put money away in a 401(k)," Michael, 49, told Insider. "And we thought we were supposed to save a little bit extra and put it in the stock market."

He started day-trading stocks in his 20s. It worked for a couple of years he turned $7,000 into nearly $200,000, he said but he lost the majority of his money, about 80%, when the dot-com bubble burst in 2000.

"It was a very eye-opening and disheartening moment," he recalled. "You go from feeling like you're able to take care of your family and you're going to have a good future to realizing that you're not as smart as you think you are."

Down but not out, Michael decided to explore alternative ways to invest his money. He went to a bookstore to look for investment books and was drawn to "Rich Dad Poor Dad" by Robert Kiyosaki. "It stood out on the shelf because it's purple," said Michael, who has since read the personal-finance classic more than 10 times.

Kiyosaki introduced him to the concept of "having money make money," he said. "I'd never really had a conversation about how money works and how the rich get richer by owning assets." With that in mind, he and Olivia decided to try real-estate investing.

It started as a way for them to get back on track financially and rebuild their nest egg. Their goal was simple: Live below their means, save enough to buy one rental property, and start earning passive income. Executing these principles turned into a path to financial freedom. Today, the Bay Area-based couple owns over 100 units in Fresno, California, and earns over $100,0000 a month in rental income. Insider reviewed their real-estate portfolio summaries that showed these details.

Their success didn't happen overnight: The Zubers have been investing in real estate for the past 20 years. For the first decade, "I wasn't even thinking about financial freedom," Michael noted. It wasn't until the 10-year mark that they realized the rental income they were earning could eventually exceed their day job income and even lead to early retirement.

And that's exactly what happened. In 2015, Olivia quit her 9-to-5. Michael followed suit in 2018 and left his software job.

"I'm lucky enough to say that every day is Saturday," said Michael, who now spends his days sharing the couple's financial independence journey through his platform, One Rental At A Time, which includes a YouTube channel, book, and courses.

Here's how the Zubers gradually built up a real-estate portfolio that now generates six figures in passive income a month.

The Zubers started by cutting back on things like eating out, entertainment, and vacations in order to save for their first rental property.

"We realized we weren't going to be able to grow our real-estate portfolio very fast if we spent all of our money," Michael said. "So we made a conscious decision to sacrifice. We went from spending 100% of our take-home to spending 50%."

Next, they spent time figuring out where they wanted to buy. After a year of looking in their backyard, they realized that purchasing real estate in the Bay Area, one of the most expensive housing markets in the US, wasn't practical. Fresno, which was about a 2 1/2-hour drive from their home, fit their criteria. It had a large population and diverse employment base, among other promising qualities, Michael said.

Once they settled on Fresno, the Zubers defined what they call a "buy box" or, "a very focused area in a city," Michael said. Most cities are too big to learn all the ins and outs. If you considered listings across all of Fresno, for example, there would be thousands.

"Most new investors are all over the map," he said. "The first step any new investor needs to do is focus. If you're going to be a buy-and-hold investor in a new area, get a buy box and make it hyper-focused."

Your buy box should consist of 20 to 40 active listings, and it's not just the specific area you're defining it's the type of property, too, he noted. The Zubers were looking specifically for 3- and 4-bedroom single-family homes between 1,250 and 1,700 square feet in a particular ZIP code.

They picked their ZIP code after spending hours driving through Fresno, going to open houses, and looking at rental listings. "That's what you do in the beginning," Michael said. "You have to learn your buy box. The more you know it, the better your chances at finding a great deal. You can't be casual. It has to be purposeful and intentional."

The first rental property they bought was a $107,000 single-family home, the Zubers said. They saved up enough to put 20% down, which is standard if you're buying an investment property rather than a home to live in.

Two weeks after closing, they rented out the property for $1,095, which was in accordance with the "1% rule" of real estate they were following at the time. "This rule claimed that if you buy a house for $100,000 or less and then rent it out for $1,000 or more a month, you were golden," Michael explained. The Zubers no longer follow this rule, he said, but it served them well in their early years of real-estate investing.

Michael and Olivia continued working full time and living on half of their income in order to save more and buy more real estate. "We sacrificed for well over a decade," Michael said. "We didn't take trips; we didn't get new cars; we didn't upgrade the house."

They bought five more properties over the next two years, all within their buy box, and rented them out. After three years of staying hyper-focused in one area, their portfolio had grown to the point where they agreed it was time to expand their box within Fresno. They also started looking at multiunit properties (their first six properties were all single-family homes), which is ultimately the strategy they settled on.

In 2008, about six years into their real-estate investing journey, the housing market crashed, which ended up working in their favor. Over the next four years, they more than doubled their portfolio, adding a handful of multiunit buildings in the process of being foreclosed, including one 18-unit building.

They bought everything they could, said Michael, who spent time researching past real-estate crashes to understand the smartest way to buy during a downturn.

As the Zubers continued investing in more and more properties, they created clear roles and responsibilities in order to keep up with their side hustle. "My job was to find deals," Michael said. "Olivia's job was to run the operational management and do the books. We were on the same page since day one."

They also had a property manager from the get-go. It was an investment they felt they had to make, he said. "Our market was 2 1/2 hours away. We didn't know anyone there. We would have failed miserably without a property manager."

Employing property managers allowed their rental income to be essentially passive, even as they acquired more and more properties. "Most people would be shocked at how little time we spend on our portfolio," Michael said. "We're probably spending five to eight hours a month and most of that is done on the phone or through email."

In 2015, the Zubers decided they were making enough money from their rental properties that Olivia could quit her 9-to-5. "We looked at our expenses for a year, made sure we could live without her income, and then she left work," said Michael, who quit his job in 2018.

Today, their portfolio consists of a variety of properties, including duplexes, triplexes, and 10-, 13-, and 18-unit buildings.

They're always looking to grow. "We added some units last year and we'll add more this year," Michael said. "It's always a great day to do a great deal, so I look at my market every day."

As for specific money or net-worth goals, "I don't have any more," he said. "I have more than I ever thought was possible." Rather, he's focusing on sharing his and Olivia's story to inspire other people to set the goal of achieving financial freedom via real estate. He wants to help 1 million people secure their first rental property through online resources like his YouTube channel and book.

Smart real-estate investing requires time in the market, Michael stressed. "A lot of people want to time the market, but it's time in the market. That's how you get wealthy. The longer you hold an asset, the wealthier you will become. It is amazing what happens to a portfolio after you've owned it for 10 years."

If you want to get into real estate, be prepared to grind for at least a couple of years, he added. The first three to five years can be slow because you have to save for a down payment, build a cash reserve to cover unexpected expenses, and potentially dip into that reserve to pay for renovations and maintenance.

Plus, he said, you'll be handling scenarios you've likely never experienced before. He's learned to handle everything from tenants not paying rent to fires that have destroyed properties. "Everything the first time is scary: The first time you have to evict, the first time you replace a water heater, the first time a roof leaks. But you just have to learn from it and move on."

If you're patient for a couple of years, though, you could really start to reap the benefits of real estate, he said.

Michael said anyone can achieve financial freedom through real-estate investing. And you don't need 100 rental properties to do so. "If you get four, your life changes," he said. "You can make work optional in 10 years. You just have to sacrifice. It takes work and effort, and the first four years are hard."

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How a Couple Used Real Estate to Build Wealth and Income, Retire Early - Business Insider

It's no secret that the stock market can put you on a path to financial independence. Unfortunately, many investors lack the patience required to realize that dream. Generally speaking, life-changing wealth doesn't accumulate overnight. But with a long-term mindset and a diversified portfolio, you can earn a fortune before you retire.

Case in point: $200 invested each week would be worth more than $1 million in 25 years' time, assuming an annualized return of 10%. And I think that's reasonable. The S&P 500 has generated an annualized return of 10.2%over the last 25 years, so a portfolio of hand-picked stocks could do even better.

With that in mind, both Shopify (NYSE:SHOP) and MercadoLibre (NASDAQ:MELI) could set you on a path to retire with $1 million. Here's why.

Image source: Getty Images.

Shopify's mission is to make commerce better for everyone. To that end, its software helps merchants manage sales across physical and digital stores, including custom websites, online marketplaces like Amazon, and social networks like Meta Platforms' Facebook. Shopify also provides value-added services like payment processing, discounted shipping, and money management solutions, in addition to thousands of integrations through the Shopify App Store.

In short, the company offers an end-to-end solution for modern commerce. That value proposition has drawn more than 1.7 millionbusinesses to its platform, and those businesses are spending more money over time as they adopt value-added services. For instance, Shopify Payments handled 49%of gross merchandise volume in the most recent quarter, up from 45% in the prior year. That means switching costs are rising, because merchants are becoming increasingly dependent on Shopify.

That trend has translated into tremendous financial growth. Over the past year, revenue rose 71% to $4.2 billion and gross margin ticked up 152 basis points to 54.5%. As a result, free cash flow skyrocketed 150% to $458.2 million. And Shopify is well positioned to maintain that momentum as e-commerce becomes more mainstream.

Of particular note, Shopify is constructing an extensive fulfillment network across the United States. Building on its 2019 acquisition of 6 River Systems, a company that specializes in collaborative mobile robots and warehouse software solutions, the Shopify Fulfillment Network will lean on automation and artificial intelligence to help merchants deliver packages more quickly and cost effectively.

Looking ahead, management puts its market opportunity at $153 billion, but that figure only accounts for small- and medium-sized businesses (SMBs). And while SMBs are the core of its clientele, Shopify Plus -- a platform engineered for larger enterprises -- has seen adoption by merchants likeNetflix and McCormick. If that trend persists, Shopify's addressable market will continue to expand.

Either way, the company has plenty of room to grow. And if Shopify continues to execute, I think it could achieve a $1.1 trillion valuation in 25 years' time, which implies an annualized return of 10%.

Image source: Getty Images.

MercadoLibre has revolutionized retail in Latin America. The company launched its online marketplace in 1999, positioning itself as a first mover in the regional e-commerce space. A few years later, it rolled out its fintech platform Mercado Pago to facilitate digital transactions on the marketplace.

That move was particularly savvy, because a high percentage of consumers in Latin America lack bank accounts or debit card, making it difficult to shop online. To that end, Mercado Pago has seen tremendous success, so much so that it has expanded beyond MercadoLibre's marketplace to other websites and brick-and-mortar retailers. In fact, the fintech platform now handles more payment volume off-marketplace than on-marketplace.

Fueled by its forward-thinking, MercadoLibre has parlayed its first-mover status into a durable competitive advantage. Today, it ranks as the largest online commerce and fintech ecosystem in Latin America, and its marketplace receives more visitors and sees more page visits than any other rival. Not surprisingly, the company's dominance in two high-growth industries has fueled impressive financial results.

Over the past year, revenue skyrocketed 89% to $6.3 billion, and the company posted a GAAP profit of $1.59 per diluted share, up from a loss of $0.16 per diluted share in the prior year. Also noteworthy, MercadoLibre's take rate -- revenue divided by total payments -- rose on both its marketplace and fintech platform, suggesting that clients are becoming more dependent on its technology. That's good news for shareholders.

Currently, MercadoLibre's market cap sits at $51 billion. But given the sizable market opportunity in both e-commerce and digital payments, I think that figure could easily surpass $555 billion in 25 years' time, a pace that would represent 10% annualized growth. That's why this stock could help you retire with $1 million.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Want to Retire With $1 Million? 2 Unstoppable Growth Stocks to Buy and Hold - The Motley Fool

This column is aimed at business owners. Consider Joe Brown. He owns a closely held enterprise, a productive farm. Its a sizeable spread, and he employs well-paid help. They till, plant, water, prune, weed, and fertilize. Throughout the hot summer they monitor the crop, keeping birds and pests at bay. But, wonder of all wonders, come fall Farmer Brown fails to harvest his crop! The planning, labor, nurturing...all wasted! Theres no financial return at seasons end on the time, talent and treasure expended.

This isnt a fairy tale. Failure to harvest happens every year. Roughly 70%-75% of all businesses put on the market annually do not sell. Ultimately there may be a harvest of sorts for some, but it falls well short of expectations and the financial needs of the owner and his or her family.

The oldest baby boomers turn 76 in 2022. The youngest boomer will turn 58; a mid-point boomer, 67. Consider the vast number of boomer-owned firms. Eventually every business will transition. The transition may be planned. It may be unplanned, precipitated by one or more of the 5Ds death, disability, divorce, disagreement, distress. A sole owner or key owner may retire, voluntarily or involuntarily. Some owners assert, I will never retire. You WILL retire. You may go out the door on a gurney, but you will retire!

The pandemic has spurred a jump in retirements as nose-to-the-grindstone owners and workers reassess meaning and purpose. We are about to witness a cascade of owners attempting to harvest the fruits of longtime labors.

Citing a 2016 Exit Planning Institute survey of middle market business owners, 63% of private businesses are owned by boomers. The business often represents 80%-90% of their net worth. Outside of a residence, vacation home and 401(K), little may rest in investments external to the business. To what extent does your financial independence and that of your family post-transition depend on harvesting a given inflation-adjusted value from your business?

Thats a critical question considering that 76% of owners plan to transition within 10 years, yet most have no solid plan. Consider how fast the last decade raced by. How much time do you really have to evaluate your business, determine the future value needed to secure your envisioned future, and take steps to grow a transferable, harvestable enterprise value that meets your goals?

Many business owners want to transfer their business to a family member. Families are complicated! Is the family business part of a larger family enterprise? How do you deal with family members who will not join the business? How do you know if the designated family member really wants to enter the business, or is suited for the envisioned role? Success beyond the second or third generation is rare. How will a family member as successor impact loyal and key non-family employees? Will they leave the business? Of owners who want to exercise an intergenerational transfer, fewer than 30% do so.

Developing a short- and long-term business continuity and succession strategy simply is good business. The heart of a strategic continuity plan is a Value Acceleration Methodology. Step One is to Indentify Current Value. Evaluating a number of factors produces a range of value estimate. You may or may not need a formal valuation initially. The real value is what a fully informed buyer would pay for your business.

Step Two is to Protect Value, a de-risking strategy. What are the risks to value? What risks can be insured? What risks can be managed, minimized, or eliminated?

Step Three is to Build Value. Theres a big difference in the value of a lifestyle business and a transferable enterprise. Owner dependence is a huge detriment to value, a hard reality for a typical in charge owner. Transferable human capital value is important. Yet, many entrepreneurs went into business because they were not administrative types. They did not set out to manage people, but as a business grows, team development and employee on-boarding, retention, and engagement becomes a key component of transferable value.

Step Four is to Harvest Value. Do you know what all of your options are? Most dont. What are the pros and cons of an intergenerational transfer, management buyout, sale to existing partners, qualified Employee Stock Ownership Plan (ESOP), non-qualified employee stock ownership plan, sale to a third party, recapitalization, or orderly liquidation?

Step Five, Manage Value. Many transition plans do not involve 100% cash up front. You may have an earn-out or other factors that impact payments over time relative to the sustainable value of the business after the initial transfer of full or partial ownership. Whats your post-sale value sustainability and growth plan?

One year after a sale or transfer, over 70% of former owners have regrets. Theyre bored! You can only travel so much, play so much golf. Your children and grandchildren love you but theyre busy. Your spouse may not be accustomed to you being home all the time! Whats your after-harvest plan to sustain purpose, meaning, passion, and engagement with life? Whats your plan to sustain physical as well as fiscal fitness?

Lewis Walker, CFP, is a financial life planning strategist at Capital Insight Group; 770-441-3553;lewis@lewwalker.com. Securities & advisory services offered through The Strategic Financial Alliance, Inc. (SFA). Lewis is a registered representative and investment adviser representative of SFA, otherwise unaffiliated with Capital Insight Group. Hes a Gallup Certified Clifton Strengths Coach and Certified Exit Planning Advisor.

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Opinion: A tale for the closely held business owner: a failure to harvest - Appen Media

Finance Minister Nirmala Sitharaman announced a key relief for tax-payers with differentlyabled family members.

Section 80DD allows tax-payers to claim deduction on anyamount paid for an insurance policy for maintenance of their differently-abled dependents. Parents or guardians of such individuals are eligible for this tax break.

However, the benefit came with certain conditions attached, which have now been relaxed. Heres an explainer to help you understand this key Budget announcement and other benefits that such individuals or their caretakers are allowed under the Income Tax Act, 1961.

What is the key condition for availing the section 80DD tax benefit that the Finance Minister has relaxed?

Such insurance policies pay the differently-abled dependents either a lump-sum or regular income in the form of annuity. The tax benefit is allowed only if the dependent receives the sum after the parent or guardians death. That is, if the differently-abled dependent were to die before the parents or guardians, the premium paiduntil then is treated as the policyholders income and taxed in the year when proceeds are received. Budget 2022 has relaxed now this provision.

The FM announced that the tax break will now be allowed even if the proceeds are received during parents lifetime, but after they turn 60. This allows differently-abled individuals to benefit from an insurance policy bought by their parent or guardian for them in a more assured manner. This will go a long way in helping differently abled dependents gain financial independence as earlier, the dependents would only get the annuity upon the parent or guardian death, says Sarbvir Singh, CEO, Policybazaar.com.

Why is Section 80DD important?

Section 80DD is meant to provide relief to tax-payers parents or other guardians taking care of medical treatment, training and rehabilitation of differently-abled dependents. Guardians include spouse, children, parents, brothers and sisters.

For instance, those suffering from locomotors disability, impaired vision, leprosy, cerebral palsy, autism and so on. If they pay or deposit any amount under an insurance policy or any other specified scheme, they can claim a tax deduction of up to Rs 1.25 lakh. That is, in case of severe disabilities of over 80 percent.

In case of less severe disabilities (over 40 percent), this tax benefit is restricted to Rs 75,000. The disability and severity have to be certified by a government hospital. However, if the differently-abled individual herself is already claiming similar deductions under section 80U, this tax break will not be available to the parents or guardians.

What are the tax breaks that a differently-abled individual can claim?

Section 80DD is meant for parents or guardians, while section 80U is applicable to the differently-abled individuals themselves. The rules are similar. If you incur expenses on medical treatment for your disabilities, you can claim a deduction of Rs 75,000-1.25 lakh. That is, like in case of section 80DD, if the disability is over 40 percent, the deduction limit will be Rs 75,000. Those with severe disabilities of over 80 percent will be eligible for higher deduction of Rs 1.25 lakh.

What if she spends less or more than the deduction limit mentioned?

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Budget 2022 offers additional tax concessions to the differently abled: Here are the details - Moneycontrol

From nursing to computer science, apprenticeships at the University of Leeds offer an alternative route into higher level qualifications.

The breadth of options on offer across the country is being highlighted as part of National Apprenticeships Week, which starts today.

The focus in 2022 continues last years theme: Building the Future reflecting on how apprenticeships can help individuals to develop the skills and knowledge required for a rewarding career, and businesses to develop a talented workforce that is equipped with future-ready skills.

The week, which runs until Sunday, brings together businesses and apprentices across the country to shine a light on the positive impact that apprenticeships make to individuals, businesses and the wider economy.

Professor Jeff Grabill, Deputy Vice-Chancellor: Student Education, said: The University of Leeds is committed to meeting the learning needs of our community. Our new University strategy promotes collaboration, equity and impact, and apprenticeships are an important part of those values.

Apprenticeships are key to help widen participation and to ensure we provide learners and businesses with teaching excellence and innovation, further boosting students' employability.

Leeds offers a range of Higher and Degree Apprenticeships which enable learners to improve their academic and vocational skills, while achieving a university qualification.

The apprenticeship programme helps improve diversity while addressing local, regional and national skills gaps, and are offered by the Universitys Lifelong Learning Centre, Schools of Computing and Healthcare, and throughLeeds University Business School.

The part-time courses at Leeds are developed in partnership with businesses and organisations including the NHS and global professional services firm PwC, ensuring the content meets their needs while maintaining the Universitys rigorous standards of research-based teaching.

Set to graduate in June 2022, the first cohort of apprentices in the jointly-developed PwC degree apprenticeship programme are already cashing in on benefits to their learning and career development.

It's been a great way to get a step ahead in my future career.

Launched in 2018, the programme is delivered by the University in partnership with PwC. Throughout the four-year programme, apprentices earn a BSc in Computer Science while building practical skills through work placements with the organisation.

Final year apprentice Lauren Cooper said: The degree apprenticeship programme is a life-changing opportunity that has really set me up for my future.

When I graduate in June, Ill come out with loads of valuable experience, financial independence, and will be ready to hit the ground running in a tech role it's been a great way to get a step ahead in my future career.

It also really opened my eyes to the possibilities to explore within computer science. I didnt appreciate how broad the field was, but through my placements Ive learned how businesses use tech to solve challenges in creative ways.

In addition to helping shape her future career, Lauren saidthe programme has also been an invaluable platform for her as a woman in tech.

About a third of the women in my cohort at PwC are women, which is much higher than the industry average.

I found PwCs culture to be very supportive they really want to encourage more women to pursue a career in STEM and create opportunities and networks to nurture you and develop your skills.

Read more about Laurens apprenticeship journey.

Though in its early stages, the programme is also delivering noticeable benefits to teams across PwC.

Cathy Baxter, Head of Talent Engagement at PwC, said: We started working with Leeds on the programme six years ago and really wanted it to be a win-win for everyone involved.

The programme is an opportunity for us to build an early talent pipeline of technologists coming into PwC while also levelling the playing field and expanding what tech talent looks like.

The programme is an opportunity for us to build an early talent pipeline of technologists ... while also levelling the playing field and expanding what tech talent looks like.

Leedss apprenticeships improve the knowledge and skills of a businesssworkforce, working with its partners to shape courses and address an organisations needs, enabling high-achieving apprentices to gain a foundation, undergraduate or Masters degree, and/or an apprenticeship qualification from the University.

Integrating university and workplace-based education and training has benefits for the business and the apprentices: skills of staff are developed to meet business priorities, and the apprentices benefit from a sponsored university education while earning a salary.

Apprenticeship schemes are created in partnership with businesses to support the needs of employers and employees.

The courses align with the apprenticeship standards designed by employers to ensure those taking part develop the necessary knowledge, skills and behaviours.

Unlike traditional degrees, apprentices are nominated by employers, who will pay their salary and training fees using the apprenticeship levy, rather than applying as individuals.

Employers can use the apprenticeship levy to develop the skills of their workforce through flexible programmes which target business priorities. The University is registered to offer apprenticeships to levy and non-levy paying organisations.

The University of Leeds offers the following apprenticeships:

Information on apprenticeships at the University of Leeds is available via the Employer Handbook.For further details, email apprenticeships@leeds.ac.uk.

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Upskilling the nation's workforce - University of Leeds

Its important when taking investment advice to understand the financial strings behind that advice.

The linked investment service provider [LISP] industry is predominantly driven by alliances to asset managers and has a legacy of higher fees and limited administration, says Charles Brits, sales manager at Wealthport.

This leaves the investor with sub-optimal choice, denying them access to investment instruments that have traditionally only been available to a small market segment. Its time we challenge the industry and provide advisors with a platform to offer their clients the true power of independent investing.

Non-independent advice comes with a very real cost even a lowball figure of 0.25% a year, compounded over 20 years, adds up to a princely sum.

Its time investors start asking what non-independent advice is costing them. Apart from the financial cost, theres the element of transparency. Tied investment advice is wrapped in murky fee structures and its frustrating trying to get to the bottom of it, adds Brits.

Wealthport is an award-winning administration platform founded a decade ago to break the stranglehold that established platforms had on the market.

We can do some things that our competitors cannot, says Brits. What sets us apart is that were independent. We have no allegiance, agreements or links with asset managers. Brokers who are tied to product providers can sell only those products, and that denies the client access to potentially far superior products that are better suited to their needs. We make our money purely off platform fees.

We dont push just one product provider but will offer advisors a broad universe of solutions that they in turn can offer their clients.

Guarding independence

By closely guarding its independence, Wealthport has built a powerful and growing business.Funds under management grew 52% in 2021.

This exceptional growth story is underpinned by the flexibility to add and subtract funds. We go through proper due diligence on all funds and businesses we have relationships with, and we build long-term relationships, says Brits.

Traditional platforms offer a limited ability to combine various investment instruments. This presents a gap for greater variety that is happily filled by Wealthport, which offers exchange-traded funds (ETFs), unit trusts, structured products model portfolios and retail investment hedge funds in a number of investment vehicles, such as tax-free savings accounts, endowments, retirement annuities and preservation funds. Hedge funds used to be for the very wealthy with an entry threshold of around R1 million but have since become accessible to retail investors, who can participate for as little as R1 000 a month.

ETFs have become a popular addition to many portfolios, something Wealthport is able to offer. Traditional investment platforms are limited in their ability to trade ETFs.

Were very flexible in adding ETFs and unit trusts to our platform, says Brits. Anything an advisor requests, we can add or take off as we please. That expands the universe of options for advisors.

We dont require financial advisors to commit to large minimum investment amounts.

Wealthport charges a standard fee 0.4% for the first R3 million, and 0.3% thereafter with room for negotiation. The fees are competitive, and hence the company is loath to horse-trade.

Questions to ask your financial advisor

My question to financial advisors is this: if you can get a portfolio of solutions that are more cost effective and fitting to your clients financial plan on one platform relative to another, why arent you giving your clients access to that?

Some ETFs we host are 0.5% cheaper than actively managed unit trusts. You have access to model portfolios that contain ETFs. Clients are becoming more sensitive to fees and if you can save 0.5% in annual fees and include the savings in performance fees usually charged, that can impact overall fund performance by anywhere between 10% and 15% over 20 years, says Brits.

Brits has a few other questions clients should be asking their financial advisors:

We have about 140 ETFs listed on our platform, and we can get more if requested, he adds.

Brits relates the story of one financial advisor who put clients into an oil ETF after the oil price crash of 2020, and then sold out four months later when he reasoned that oil had hit its peak. It is these kinds of opportunities that ETFs present and that are usually denied to clients due to the limited universe of investment options available on most platforms.

Vested interests run deep within the financial services sector, so getting financial advisors to change behaviour requires a push from clients, who are becoming far more informed on the range of products and their relative costs.

Despite this, many clients remain tied to their brokers, in much the same way as banking clients are reluctant to switch. Switching is admin-intensive and time-consuming, but advisors dont need to make this switch rather they should think about whether there are better options for the new business they bring in. Options take away the non-independence that we are speaking about, says Brits.

Due diligence

Wealthport subjects all new funds and businesses to a thorough due diligence and negotiates institutional rates with investment managers, ensuring only quality and best-priced investment products are listed on its platform.

Non-independent advisors are unable to offer their clients the choice, agility, platform accessibility and fee structure that independent advisors can, according to Brits. This explains the huge growth in funds under management in recent years.

Wealthport has representation in the Western Cape and Gauteng, but services the whole of South Africa.

Brought to you by Wealthport.

Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.

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The high cost of non-independent investment advice - Moneyweb

This artist sketch depicts Mississippi Solicitor General Scott Stewart, standing while speaking to the Supreme Court, Wednesday, Dec. 1, 2021, in Washington. (Dana Verkouteren via AP)

January 22, 2022 marks the 49th anniversary of the Supreme Courts decision in Roe v. Wade. But this year, young women/people facing pregnancy could face significant harm as the first generation in half a century to enter adulthood without the fundamental right to make the decision whether to continue a pregnancy.

Debbie Esparza

In the last 50 years, weve made tremendous strides in improving the economic outcomes, educational attainment, health and safety for women in this country. All of that stands to be undermined by the Supreme Court.

Women/people who are denied an abortion are four times more likely to live in poverty than women who can access care. Restrictions on abortion care will hurt working-class and low-income women/people the most.

Punitive abortion restrictions like those in Texas disproportionately affect women of color, LGBTQ persons, young women, immigrants, low-income people, and others who have difficulty accessing health services.

The YWCA is a trusted voice to some of the most vulnerable communities in the country. Here in Arizona, YWCA Metropolitan Phoenix provides important programming for women, people of color, and seniors, and weve been doing it for the last 110 years.

Our programs include preparing and distributing meals to home-bound and isolated older adults. We also help women and their families gain financial independence by providing free financial education courses and financial coaching. We challenge systemic inequality through our advocacy program by hosting workshops for the public to attend, partnering with organizations like the Womens March to advocate for womens rights, and supporting bills like the John Lewis Voting Rights Advancement Act to dismantle barriers and ensure freedom, justice, peace, and dignity for all.

Every person has the constitutional right to make decisions regarding their reproductive health.

Congress needs to pass the Womens Health Protection Act and solidify the right to access abortion services free from burdensome and often medically unnecessary restrictions. This bill will also protect providers, ensuring everyone has continued access to safe abortion care.

You can support the Womens Health Protection Act to make sure no one has to cross state lines to receive this critical medical care. Write to your members of Congress today.

Debbie Esparza is the YWCA Metro Phoenix CEO.

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Overturning Roe V. Wade after 49 Years will have devastating impacts on young women - Arizona Capitol Times

By The EastAfrican

Depending on how one might want to look at it, the African Union is either on the cusp of its 60th anniversary in fifteen months time, or celebrating 20 years of existence this coming week. Preceded by the Organisation of African Unity in May1963 when 32 independent African states signed up to the OAU Charter; the Organisation of African Unity metamorphosed into the African Union in February 2002.

Among others, the main objectives of the AU and its predecessor the OAU, was to free Africa of the remaining manifestations of colonialism, and to promote unity and cohesion among African states.

Yet as African leaders troop into Addis for the 35th ordinary session of the African Union, the pan African organisation, faces a critical test that will make or break it. From political instability to financial uncertainty, the AU is still in the trenches. In west Africa, the AU is juggling a crisis that has seen six military takeovers of government in the past two years alone.

Despite initiatives such as the 0.2 percent import levy that was meant to deliver financial independence, the organuisation still depends on external funding for up to three quarters of its budget. That automatically negates the aspiration for independence that is often expressed in popular slogans at annual gatherings.

The present crisis is poignant because to the average African, it has more to do with the choices of the present than the legacy of a century of colonialism. In Burkina Faso and Mali, the putschists were welcomed by citizens because they presented themselves as being opposed to the lingering threads of colonialism that still make supposedly independent states hostage to colonial master France.

Coupled with the Covid-19 pandemic and economies that were already on their knees, African leaders are under pressure to rethink and renegotiate or dismantle a status quo that is becoming increasingly unacceptable to their subjects.

If there are any lessons to learn from recent events, one is that African citizens are becoming more assertive and expect better than empty promises from their leaders. For instance, since it was adopted more than two years ago, only 32 states have signed up to the African Free Continental area AFCTA. The single African air transport air transport market SAATM, remains earth-bound despite the few dozen countries that have signed up to it accounting for more than two-third of air traffic on the continent.

Recent sanctions against military coups have had limited success because of the absence of effective transmission paths between member states. Weak commitment to, and wanting observation and respect for basic human rights, has also undermined the authority of the AU.

It would be premature to write off the AU. The organization stands for ideals that cut across the generations. Its challenges are clear for all and sundry to see. What remains now is for leaders to walk the talk, if they hope to remain relevant. A lot of the productive energy that is currently wasted in avoidable conflict, needs to be redirected towards progressive implementation of the continental agenda so that citizens can live and feel the AU.

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EDITORIAL: The AU @20, a time to walk the talk - The East African

By Louis Kalumbia

Dar es Salaam. CCM chairperson Samia Suluhu Hassan, who doubles as the President of the United Republic of Tanzania, yesterday unveiled the government and party achievements as Africas longest ruling political party marked its 45th anniversary.

In celebrations held in Musoma, Mara Region--the birth place of the founding Father of the Nation Julius Nyerere--the Head of State listed key achievements as including maintenance of peace and security, furthering democracy and good governance as well as promoting investment through construction of large, medium and small-scale industries.

Speaking at the live broadcast event, President Hassan said the implementation of the Julius Nyerere Hydropower Project (JNHPP) aimed at providing reliable electricity to support the countrys industrialisation agenda.

Strengthening transport and transportation services and implementation of the on-going standard gauge railway (SGR) are among the successes, she said, adding that come 2025, their implementation will be at a higher percentage.

Improving roads and bridges, aviation services and airports construction as well as transport in marine and lake bodies through construction of ships and ferries for passengers and cargo transport are the other areas, she added.

In the education sector, the CCM leader said infrastructure for education delivery such as classrooms; special schools; secondary schools, vocational and education training centres, laboratories, teachers houses, and many others were being constructed across the country. According to her, construction of dispensaries, hospitals, health centres in the wards, districts, regional and referral levels, distribution of medical equipment and training of experts are implemented to improve the health sector.

We have also managed to properly supervise the outbreak of Covid-19 and provide jabs to citizens. I reinstate my call that citizens should go for free vaccination provided countrywide, she said.

Furthermore, she said the government invested in production and distribution of clean and safe water that has reached 75 percent and that the journey towards supply of 85 and 95 percent to rural and urban Tanzania was going on.

Priority is on the agriculture, livestock keeping and fishing sectors, therefore, cashew and cotton farmers were this season given subsidized inputs contributing to increased yields, she said.

According to the Head of State, further investment has been made in the construction of warehouses, cilos and value addition factories for agriculture and livestock products.

The CCM chair said 10 percent of approved budgets by council is being allocated for economic empowerment to the youth, women and people with disabilities (PwDs).

According to her, special windows for loans disbursement have been introduced by different banks, the project by the Tanzania Social Action Fund (Tasaf) and enactment of policies and laws aimed to protect the interests of citizens against small sized financial institutions have been started.

The government is also supervising the Savings and Credit Co-Operative Societies (Saccos) and Cooperative Unions (CUs) for the interests of citizens, she said.

Furthermore, President Hassan said the CCM administration continues with the formalisation of the informal sector in order to benefit Tanzanians and broaden efforts of economic inclusion.

Following these efforts, Tanzania was in August 2019 declared to enter the low middle economy, six years before anticipated time, she said.

The Head of State said achievements recorded by CCM include construction of a political and ideological college in Kibaha, Coast Region, introduction of membership electronic registration and recording financial independence.

She said the independence has enabled the party to increase salaries of officers and significantly service its loans.

Briefing on the membership electronic registration process, the partys secretary general, Mr Daniel Chongolo, said it aimed at maintaining membership records, increase revenue base and enable distributed cards to be used in provision of social services.

He said party members have increased to 12 million from 500,000 in 1977 during the union of the Tanganyika African National Union (Tanu) and African Shiraz Party (ASP).

Delivering a message from the Communist Party of China (CPC), an officer whose name couldnt easily be accessed said the 45th anniversary would be a starting point for CCM to alleviate social economic and national development to the new heights.

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Samia lists success stories supervised by the ruling CCM - The Citizen