100 episodes

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 ask@justonelap.com.

The Fat Wallet Show from Just One Lap JustOneLap.com

    • Education
    • 4.9, 226 Ratings

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 ask@justonelap.com.

    Investing in China (#207)

    Investing in China (#207)

    If you listened to this episode on a single ETF strategy, you know my investment philosophy. This simple approach to investing saves me a lot of drama. When a new product comes to the market, I ask myself if it fits with my original philosophy. If it doesn’t, I can satisfy my curiosity about the product without touching my investments. This is a good way to live. 
    The new China ETF from Satrix disturbed my Zen approach. If my philosophy is to invest in all the companies in the world according to their market capitalisation, China should have much larger representation in my portfolio. I never thought about it before, since we had no direct way of investing in that economy. This new ETF changes that and gives me a lot to think about.
    In this episode of The Fat Wallet Show, Simon Chuckles Brown and I think about how to factor in the corporate governance risk that comes from investing in China. How do we get the right amount of Chinese exposure without betting the farm?
    Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Lady Kabelo:
    I just got an email about the Satrix MSCI China ETF IPO. 
    My interest is piqued because China's growth has been all the rage for years - pre-COVID anyway. I'm sure it will be again. But I have a TFSA strategy that includes the Top40, SA Property Income, and the Global 1200 so I have emerging market exposure. Also, I'm not really an early adopter. I'd probably watch what goes on with this for a while before buying.
    What would be a good reason to buy this China-specific ETF? I'm pretty sure I know you and Simon well enough to guess that you would stick with your global 1200. But might there be any merit in buying this?
    I broadly understand what an IPO is, mainly from the news on interesting IPO drama like Uber and WeWork. What is the virtue of buying at the IPO stage? For example, is there a discount there that might be worth deviating from your strategy to get good value at a bargain price? I would be afraid of buying this at IPO at an inflated price only for it to sink. Is that a real risk? If so, why do people do it? What is the appeal of this offer supposed to be? Looks to me like the only upside is being first to get it, which seems a weak benefit. 
    Win of the week: Herman
    In this week’s podcast ‘Spend money to save money’, Andrew mentioned how, whilst poor, he had to be the King of cheap, and paid the price. You made a comment about the poor being pigeon holed into buying cheap, and it costing them. And I agree.
    How often has it not been shown that the poor suffer the brunt of recessions, tax hikes, interest rate changes, and inefficient governments much more than the middle class or the rich.
    THIS got me thinking: One of the reasons we should take charge of our finances, is to prevent being at the mercy of others. Be it to a horrible boss, or service providers/retailers with nasty products. One of the many ‘luxuries’ afforded to the rich or middle class, is to have a choice in our spending.
    Thanks for making me think of this, and playing a role in helping me take charge of my financial situation.
    I own both Naspers and Prosus. Would it not be better to sell and be in cash right now? I know that there is an Income Tax implication, but am more worried about the bigger picture right now. 
    Similarly, my gold ETF (NewGold) is doing well due to markets crashing and ZAR weakness but this could all reverse in the next 6 months. 
    I've been getting all my financial advice from a podcast called howtomoney, which is in American. I wanted a South African perspective and I love your show. I've been binge listening for three days now during Lockdown.
    How do you guys feel about the EasyProperties platform?

    • 1 hr 1 min
    Spend money to save money (#206)

    Spend money to save money (#206)

    You can find the Satrix webinar we mention at the top of the show here.
    Isn’t it odd how few money conversations centre around mundane financial choices? Surely our net worth is a reflection of the small financial decisions we make every day. A rather typical experience with a contractor has me questioning my decision-making this week. Do I need to think differently about the intersection between price and quality? I asked your help and got some really excellent ideas. Simon and I think through many of them in this week’s episode of The Fat Wallet Show. 
    I loved all the feedback we got. Unfortunately my favourite new way of thinking came in after we recorded the show, but here it is:
    Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Your feedback:
    Figure out the average price and look 10-20% above that and compare features/requirements. I usually end up with something on the upper end of mid range, with the reliability of the higher end, but none of the "its the best" tax. Cost per use is the other dominant factor.
    — z3llin (@z3llin) June 25, 2020
    Oscar: If the price difference is marginal, I'd go for convenience, or for good service, or both. If the price difference is sizable, there is bound to be third party published material where this difference is explained [in detail].
    Tamara: Depends on the thing. Some things are worth paying more for because they yield a better experience or last longer than cheap alternatives (e.g. decent tools, leather boots). Other things, I take the best price I can get (e.g. refill on my gas bottle, cat scratching block)...
    There's also an element of risk that gets factored in to value equations on some stuff. I'm not going to go hunting for cut-rate medical specialists or the cheapest backyard mechanic. I'll willingly pay more if I believe it translates to better care.
    Duke of Prunes: Generally the cheapest thing with the most favourable reviews possible.
    Manus: My problem is to figure out if I really do need the thing, if I do need the thing I have to figure out how important the quality is. If quality is important I will overpay if need be.
    Overpaying because it is pretty isn’t reason enough to overpay.
    Daniel: How much I will be using it will also determine how much Im willing to spend. The more I will use something the more Im willing to pay for better quality versions.
    Rudi: If it separates you from the ground, go for quality (shoes, bed, tyres)
    Sheila: Depends .. may buy cheapest item, find it is inefficient, and revert to an expensive product. For instance - dishwashing tablets.
    Wilhelm: Some brands offer amazing quality products but also at a increased price. If I know the product will last a lifetime, I don’t mind paying extra (Stanley Flasks, LED lenser headlamps).
    Greg: I generally go for quality, my big exception is cell phones, in my mind they do the same job, so I just buy the cheaper Chinese brands for cash; I just can't justify shelling out 15k plus for a cellphone.
    Wynand: Here I actually differ. I feel I interact with this device for HOURS everyday so I soend money to make that experience a pleasant one.
    Shane: in the kitchen i can tell the difference between a R1000 pan and R90 pan. the latter is so wobbly it barely touches the stove. no more skimping on kitchenware for me , no matter what the cost 😉 i skimp on phones (R200 nokia), cars (none)
    Andrew: Cost per Use is my go to metric to guide those decisions
    When I was poor was the king of cheap for a long time and it didn't work.
    But then I started looking at the Cost per use.
    Now I am well off- by no means ready to retire. But comfortable- now I try to look for high quality stuff but usually second hand - like GPS watches, Baby stuff - prams, cots etc.
    Sometimes on certain products I buy new. 
    Down jackets for winter - super expensive when I got t

    • 57 min
    The perfect money month (#205)

    The perfect money month (#205)

    A while back my smart and handsome co-host Simon Brown did a presentation about the perfect trade. Even though I don’t trade myself, I found the presentation inspiring. As we often advocate, when it comes to this money business it’s best to focus only on what you can control.
    A conversation with Cash Club writer Njabulo Nsibande made me realise we can apply the idea of a perfect trade to our investments too. As Simon and I flesh out that idea in this podcast, we realise you can aim for a perfect month in your own finances, regardless of what you’re currently focusing on. 
    Here’s the template for the perfect money month we came up with:
    The first money that leaves your account after every pay cheque goes towards your future. Look at your money: A broad overview of your whole portfolio, as well as your individual expenses every month.  Don’t use the money you set aside. Every month you do all three of these things is a perfect month. Your challenge is to see how many months you can get in a row. Who’s game?
    Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Win of the week: Linka
    I found "Just one lap podcasts" via Stealthy's blog where I ended up after not agreeing with a financial adviser about an investment strategy and deciding if other people can understand this stuff, I can too. 
    Vigorous amounts of googling and reading showed that as I guessed, none of this stuff is rocket science, its just the way that the information is presented that precludes the general public from accessing it. Thanks for all you and Simon's contribution to unraveling the unnecessary verbose complexity the industry uses. In short, just want to say, I really enjoy the podcasts. Have started to listen to the JSE direct one as well and surprisingly, I can understand most of it!
    I recently started working for myself and registered a company. Mainly to enable future tax deductions and to keep company and personal equity separate. 
    I opened a business account with FNB. At the time it made sense to me since I was already with them. I wanted a 7 days fixed deposit account to stash the incoming payments to keep this money from being lazy money.
    However - After looking at the bank fees for the gold account (personal) + business account I am starting to dislike the numbers. Also the extra charges I missed somewhere in the fine print is really starting to annoy me.
    If I don’t need to have a business account, I can open two accounts at Capitec, which would probably be much cheaper. If this is not contrary to SARS' requirements - Capitec does not do business accounts yet.
    While being employed I was able to cover my bank charges with Ebucks, but with an irregular income, I doubt whether I will be able to maintain that level.
    My wife and I purchase the Ashburton World Government Bond ETF.
    The initial thinking was simply to get exposure to bonds. But I've been trying to figure out if we should rather purchase SA retail bonds instead of a bond ETF.
    Could you go through some differences and pros and cons of SA retail bonds versus bond ETFs.
    I understand that retail bonds provide you with a fixed interest rate (coupon), but I'm interested to know in what situations you would purchase one over the other.
    We recently had a baby and decided to start saving for her immediately. The purpose of saving is mainly for her tertiary education. 
    We decided to go 50/50 into Discretionary and her TFSA. She can choose where to draw the money from when she starts University. It will be a good learning opportunity for her. 
    For the discretionary investment we want to do cash. FNB has a “my first savings” product at 5.75% interest and no monthly or transactional fees. However, our broker also pays interest on money not invested at a rate of around 6%, but Simons says it is illegal to do this. Why is it il

    • 1 hr 5 min
    Offshore ETFs and the rand (#204)

    Offshore ETFs and the rand (#204)

    When you buy a locally-listed ETF based in another currency, two transactions happen in the background. First, your rands are converted to the other currency. The new currency is then used to buy the ETF units. Buying an ETF based in a different currency is therefore an easy way to introduce currency diversification into your portfolio. 
    In this episode we help you understand the impact of these two transactions on your portfolio when there’s currency movement. If, for example, you bought a dollar-based ETF and the rand weakens against the dollar, do you have more money or less money?
    We explore hedging and why this strategy might be seen as a currency hedge. If you’re looking at offshore ETFs for your portfolio, you don’t want to miss this episode.
    Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Tony 
    If you invest in an ETF like the SP500, does this give you protection against the value of the rand? Does the value of the ETF adjust along with the value of the rand?
    If yes, how does this process work? Are there any dollar based ETFs in SA that can be used in a tax free account?
    Win of the week: Boitomelo
    Thank you so much for your good content that has allowed most of us to make life-changing financial decisions. I cannot thank you enough. 
    Are you guys not able to have a Patreon account where those who wish to contribute to your content can do so? 
    I guess it goes without saying that any negative credit events would be tied to each of our names. If we get the bond in our own names, we (and not the business) would own the property.
    If we try to have the business receive the rent as income on a property we own in our own names (if such a thing is in any way even possible), SARS could see this as some kind of attempt at tax evasion? As I mentioned before - only completely above-board practices would suffice. 
    If we purchase the property in our own names, we could each be held fully liable for the full amount, then it would be up to the person held liable to take the other to court to recoup the balance.
    If I were to start now, with mayhem in the market, are ETFs cheaper / a great price right now, or is there anticipation of an even bigger dip, creating even better buying power?
    I’m specifically looking at Satrix MSCI / Top 40, Asburton Global 1200 and Sygnia MSCI World.
    To confuse the question even more, is there some kind of daily / weekly 'tracking number’ - to gauge if ETFs are getting more affordable?
    I discovered dividends aren’t taxed at all when shares are held in a company. However, capital gains tax is 28% on 80% of your capital gains, which is quite high. 
    I have a small company from which I pay myself a salary. From time to time I have a bit of extra money in this company.
    I’ve been buying ETFs in the company: 40% local equity (Coreshares top 50), 40% world equity (MSCI World); 10% Global property and 10% local property.
    This was before I knew about the free dividends. Now I’m thinking I should buy whatever pays the highest possible dividend - without undue capital risk and definitely not property because the distributions are taxed as income.
    In my mind, I should probably be buying the: PREFTRAX
    Do you think I should sell the above ETFs and move it all over to PrefTrax or whatever else might be better? 
    I am 31 and based in Kuwait, which offers great earning and saving potential. 
    How do I best use this money? My first investment was in property back in South Africa, which is paying for itself. I was looking to invest in a second property this year. However, some friends in the finance game suggested this was not such a great idea. They recommended I diversify investments and look into ETFs specifically.
    Would you suggest trying to open up an account with an international broker, such as interactive broker

    • 1 hr 6 min
    Pension fund withdrawals (#203)

    Pension fund withdrawals (#203)

    Under normal circumstances we would strongly caution against withdrawing from your pension fund. The reason is quite simple: the tax will make your eyes water. One decision can slash your hard-earned net worth by hundreds of thousands of rands. That’s not even factoring for opportunity cost.
    However, since we’re currently living through the apocalypse, we might have to soften our stance on this. Some members of the financial services industry are lobbying for access to pension funds during this crisis. If you’re no longer able to earn an income, you might have to make a smart decision about this. 
    In this week’s episode, we give you a sense of the different factors you have to consider before withdrawing from your pension fund. Naturally, we start with tax. We also consider the opportunity cost of the withdrawal, as well as the opportunity cost of taking on debt instead of withdrawing. 
    We also spend some time making sense of the benefits of share incentive schemes.
    At the beginning of the episode, we mention emergency loans. These are the conditions you have to meet to qualify, and these are credit providers registered with the National Credit Regulator.
    Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Clara
    I am currently in my notice month. I’ve worked in local government for 13 years. I'm quite in a spin as to whether I should cash out my pension before 55, leave it or move to a provident fund. 
    After long deliberation and getting some financial advice, I have decided to take the plunge and withdraw the cash, pay the tax, cut my losses and move on.  
    Firstly I wanted to ensure that my pension will not be used to fund our government-owned companies, the possibility of junk status, the weakening rand after junk status and the management /administration fees that will be due to my portfolio manager for my provident fund if I choose to go that route. 
    I wanted to "do the right thing" - to give my 30days notice as required by employment act, but this honorable decision has bitten me in the back and I have lost R200,000 in my pension fund in the last 30 days. 
    I don't want to make hasty decisions in ‘’panic mode’’ and withdraw as quickly as possible. The withdrawal will only happen in 2 -3 weeks, so I’ll lose much more, pay taxes on the little I have left after our market dropped. 
    At this stage I am thinking of not withdrawing the funds, moving it to a provident fund, letting it recover as much as it can for a year or so, monitor the Rand/CAD$ exchange rate and take it from there.
    But I’m afraid all the current negative elements such as junk status etc will have a much more negative impact. 
    If I pay my pension fund into a provident fund it will still be affected by the markets, but maybe it will recover a bit before withdrawing the funds.
    I don’t need the funds and thought to put it in a pension fund in Canada.
    Although I am aware that all markets are affected, growth will probably not be better in Canada.
    Win of the week: Kerry
    Also Serena
    You can do a transfer of the units held in your Allan Gray fund to an Allan Gray fund held on the  Sygnia platform. Sygnia offers a number of Allan Gray Funds on their alchemy platform. 
    I did a section 14 transfer in September 2019 of the units held in my Allan Gray Balanced fund. Allan Gray need to convert it from a Class A to a Class C first before transfer. 
    I did this for two reasons . I held this balanced fund in Allan Gray for over 15 years and did not want to lock in lack of performance of the last five years. I was also concerned about the volatility of the market during the time of the transfer process.
    Over the following 7 months, I’ve switched out of the Allan Gray Balanced fund on the Sygnia platform when the price was appropriate. I switched into a combination of ETFs and the Skeleton 70 fund,

    • 1 hr 1 min
    Brushing up your strategy (#202)

    Brushing up your strategy (#202)

    Many of you come to us fresh as daisies. You start listening in anticipation of your first pay cheque. A clean slate means you can set your financial situation up in a way that makes sense to you at the outset.
    Those of us who aren’t so lucky have to turn our financial patchwork into a structure of some integrity. This episode is about that. Inspired by 39-year-old Dunga, we help you figure out what might be missing from the financial setup you already have. We cover everything from debt as a risk to protecting your assets to how to analyse your ETF portfolio. 
    Amazingly, we don’t touch on fees. Since that’s most of what we talk about most of the time, why we miss it in this episode I can’t say. We do, however, cover the amount at which you should consider moving your retirement annuity to OUTvest, who is our preferred partner in all things retirement. (Because we’re cheap and they’re cheap.)
    Subscribe to our RSS feed here. Subscribe or rate us in iTunes. Dunga
    My biggest fear isn’t the markets or that my portfolio isn’t balanced enough, but that I may be stuck in the habit of withdrawing my investments every 3-5 years. 
    The temptation is to withdraw my investments and use them for short-term needs. I've never had or received twenty, thirty or forty thousand rand. The longer my investment grows, the bigger my temptation becomes. What I feel I really need are ways to avoid this temptation because I think it will only become bigger as my investments grow.
    He has disability cover, a hospital plan and he’s taking out critical illness cover in July. He has 8 ETFs and 1 ETN, an RA with iTransact which is made up of 8 different ETFs. He holds Satrix Indi, CSSP500 and 1nvest SP infotech in both. 
    He also has three long-term savings products with Old Mutual. One is to save for a house deposit, one is to save for his kids’ education and one is to save for a wedding. 
    My motivation for still buying Old Mutual is that it gives me the discipline to save because of the penalties for early withdrawals. The etfs are a welcome distraction so I end up forgetting about the old mutual products.
    In August he wants to start a new portfolio with an additional 10 ETF products, which includes gold, palladium, rhodium, Africa and Global property, the Nasdaq 100 and world government bonds. If he implements this strategy, he will hold 27 different ETFs.
    My reasoning for buying so many ETFs is first diversification and secondly to see for myself those which will perform better than others. in 3-5 years I may weed those which I feel are not doing good.
    Win of the week: Zola
    I was listening to the latest podcast episode and I was shocked to hear Javid wanting to invest in defence stocks, because of the war that could have taken place between the US and Iran. I know that by listening to this podcast we are all capitalists trying to make money but goodness, surely, we shouldn’t be trying to make money off people being bombed.
    Which brings me to my question: how does one try to invest in ETFs that are in line with one’s beliefs? Is there a way of finding a collection of stocks for example that invest in renewables or even companies owned by women? Something like Shariah-compliant funds?
    So I have an RA with 10x. Recently Outvest have released an interesting product in the RA space.
    Can you possibly do the number crunching for me, by virtue of an example, and tell me at what minimum value should my RA with 10x be before I switch it over to Outvest?
    What I’m implying is that up until a certain value, my RA will do better with 10x. But then when it surpasses that value, it will do better with OUTvest.
    I bought a property last week. I’ll have to put down a big deposit within the next 2 months. In order to pay my deposit I will have to sell my ETFs and unit trusts. Because of the Ma

    • 1 hr 6 min

Customer Reviews

4.9 out of 5
226 Ratings

226 Ratings

2Lie Mav ,

Amazing show!

Love these two! Informative and funny. Great teachers. Thank you 👏🏾👏🏾

FattieFan ,

great show!

Kristia and Simon manage to break down financial jargon meant to confuse you (when all it is, truly, is a scam, in too many cases! a scam to rid you of all your hard earned money!)

Still not quite comfortable with all the finance terms etc. and applying all the lessons is so much easier said than done. But, some action is better than inertia. Thank you both!

Joe@130963? ,


Financial whit that is giving great advice and thoughts to ponder on. How I wish this was around in my early years of working

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