Money Matters
Issue 41

September/October 2021

Here at Stone Wealth Management, we field questions on a daily basis on various aspects of financial planning, but there are two issues that seem to surface repeatedly.

Firstly, we are often approached by clients where a parent or spouse is beginning to show the first signs of dementia and family members are anxious to know how best to deal with the practical financial aspects. In this issue, we explore a potential solution through the use of a Special Trust.

Secondly, we are asked questions around cryptocurrencies – how they are bought, how they are sold, how they are mined, whether they should be included as part of an investment strategy, what happens when the investor dies, and importantly, how will it be taxed. Many countries, South Africa included, are grappling with just how they are to regulate this complex ‘investment’. There are countless articles on cryptocurrencies however we found an article written by Ruan Botha, a Legal Adviser from Momentum, to be the most comprehensive and helpful in answering the everyday questions.

At Stone Wealth Management, we help our clients navigate the complex investment arena, helping them build their Investment Strategy to meet their individual goals.

A Solution for Managing the Financial Affairs of Individuals diagnosed with Dementia.
Although experienced differently by everyone, a main feature of the illness is the loss of mental ability and capacity to make important decisions, including financial and care decisions. This is problematic, especially where the family is unprepared or uninformed of the practical implications or where the diagnosed individual is in charge of household finances.

What is meant with the term ‘cryptocurrencies’?
A cryptocurrency (crypto) is a digital or virtual currency that is secured by cryptography (to secure transaction records) which makes it nearly impossible to counterfeit. It is intended to work as a medium of exchange – it can be used to buy goods and services or one can trade them for profit. It does not exist in physical form – so it is not like paper-money, and it is generally not issued by a central authority. There are many different cryptos around – Bitcoin was the first to be issued in 2009.
A cryptocurrency, crypto-currency, or crypto is a digital asset designed to work as a medium of exchange.

What happens if you outlive your retirement investment capital?
You simply will have to rely on your children to support you. But if they cannot afford to, or you do not have any children, then the future looks bleak.

As retirement specialists, Stone Wealth Management provides high-level retirement planning solutions to our clients that keeps them financially independent. We use world-class sophisticated financial planning and modeling tools to tailor-make Financial Plans that include calculations of the retirement investment capital required to ensure that each client achieves their life goals and retires financially independent. We present a framework of their current financial circumstances and future financial goals. This provides them with a clear perspective of their financial status, enabling them to make secure informed decisions.

A Financial Plan should form the framework for your future’s decision making. This will prevent your investment portfolio from becoming fragmented and disjointed. Your Financial Plan should not only deal with investments, but in fact all aspects of wealth management, including your succession plan and risk management plan. Without a sound Financial Plan, it’s likely that you run the risk of making decisions in isolation and potentially jeopardizing your financial future. And your future should be about enjoying your children and their families, and not depending on them.