Behind a Smile with Dr. Shauntel Ambrose
I host a podcast that shares the secrets behind some of the most resilient healthcare businesses worldwide, innovative products, savvy strategies and daily inspiration to reach your ultimate in your healthcare career. I interview the movers and shakers of healthcare who courageously push boundaries. Whether you a start-up, or needing a push to keep going or a family business or looking for mentorship without the business know-how. This is an all-inclusive, keeping it real, not for the faint-hearted, haters or the nay-sayers live your best life as a member of a global community in healthcare podcast!
Behind a Smile with Dr. Shauntel Ambrose
Crafting Your Future: Financial and Professional Growth
Unlock the secrets to building a solid financial future with insights from Yatisha Babulal, our esteemed finance expert. Discover the crucial steps to crafting a robust investment strategy, including the significance of understanding your time horizon and the power of saving early. Inspired by Warren Buffett's wisdom, we explore the impact of saving before spending and delve into the tax implications of your investment choices. Learn how to maximize your financial growth by choosing tax-efficient vehicles and aligning your investments with your estate planning goals through thoughtful beneficiary selection.
Beyond financial mastery, we venture into personal and professional growth strategies tailored for healthcare practitioners. Explore how to build your personal brand, diversify your business endeavors, and pursue your career passions with innovative job crafting techniques. We stress the importance of self-care and introduce amazing products designed to support your journey. Gain valuable insights on connecting with industry leaders, overcoming challenges, and exceeding expectations. Join our community where your aspirations are nurtured, and your success is our shared mission.
Hello and welcome to Behind a Smile. I am Dr Chantal Ambrose and I am a dentist. I host a healthcare business podcast where I interview healthcare practitioners around the world, sharing tips on how to improve your healthcare practice, innovate and grow, while living your best life. We share products and information from healthcare partners that can help you in your practice journey, be it a startup, a family-based business or a multidisciplinary healthcare team. Most of the information provided here is based on personal experience and opinions. Of the information provided here is based on personal experience and opinions, so please supplement what you learn here with approved research, studies and professional advice.
Speaker 1:Thank you to everyone who has subscribed and I invite you to join our community. If you haven't, we would love to hear from you. If you would like to be on the show, drop me a mail at behindasmile2 at gmailcom. Let's make it happen together. Hi everyone, it's Dr Ambrose here and we have Yathisha Bawala, who is our go-to person for everything finance-related, giving us a little bit of advice on how to have a more healthy financial existence. So you know our tips for today that we are wanting from you, yathisha, is what do we do with investments now? Where is the start, where is the finish and where is the middle? Awesome.
Speaker 2:Thank you so much, doc. Thank you so much for having me. I'm really looking forward to, I suppose, the series of podcasts that we will have around finances. But lovely broad topic that you asked me on investments, okay, so when it comes to investments, I think it's important for you to also be a little bit financially savvy when it comes to advice given from advisors in the industry. So I think, when it comes to investments, there's a few things that you need to be aware of, right? So usually you will have a savings goal. For example, I want to invest or save my money up for a holiday in December next year. So now that determines your time horizon. So our time horizon, then, is just about a year, so that you need to take into account now as to where that money is. So you can't then obviously go into five-year investment, because the risks are obviously. They need to come to one-year time horizon. So that's important in terms of what is your time horizon for investing, to determine where you'd actually be invested. So that's the first thing to consider. And then there are also two golden rules in terms of investing. So one of the big things and this can also just tie a little bit into retirement, which we can always chat about at a different stage is to start as early as possible with savings and investments and start with as much as possible. Savings and investments and I think you know, like Warren Buffett said, is spend, sorry, save first and then spend what's left, and not the other way around, because you need to make sure you're protecting your assets and your cash. Okay, so that was it. So time horizon and then save as much as possible and start as early as possible.
Speaker 2:Then it's also important to know what are the tax implications of my investments, because that's a big thing, it's something we cannot avoid and it's something we also need to be very wary of when we come in here, right? So investments in different asset classes will obviously reap different sort of rewards, and one of them is interest. So interest you are allowed currently 23,800 rand. That is sort of a rebate when it comes to interest that you allowed in the year. So where? And that's if you under the age of 65. So so in the scenario, 40 years old in the year, I earned 23 800 from my investments in interest. That's fine. There's no tax payable on that. Should your interest then be sort of 30,000 for that tax year, you are taxed on that difference at your margin tax rate. So that's important. So if you are in a higher tax record, that's going to affect you when it comes to the interest over and above the rebate amount that you allow. And then if you're over the age of 65, that yearly rebate is R64,500. Right. So that's also something to be wary of when it comes to taxes.
Speaker 2:And also when we look at investments, something that also might be important is maybe beneficiaries, because you also need to think about what happens to this investment. Should I pass away? So the thing is, in certain instances it's going to form part of the estate and then the rest of it follows. Is it due to your below, etc. So that's also something we can touch on in another session on estate planning. So beneficiary is something you might want to look at. If you do want a beneficiary on your investment, look at those sort of vehicles accordingly.
Speaker 2:And I think one other thing that I want to touch on is just to bear in mind, still related to taxes, is the capital means, tax on investment, right? So this is also something that you should be wary of and not be surprised that you know at the end of my five years that I had been invested. Oh, there's no taxes to pay, right? So capital gains tax is realistic and and that's actually the growth on your investment. So there are inclusion rates that we talk about now. So let's use an example If your growth on your investment happens to be, say, 100,000, the inclusion rate is 40 percent.
Speaker 2:So that means on that world, we are in tax on just 40 percent of the 100,000 and luckily, that tax capital concept is 18 percent, right? So it's not at your marginal tax rate, or individuals at 18 percent. So it's not at your marginal tax rate, it's at your individual's 18%. So that's also something important to bear in mind when it comes to investments. So the taxes like I said, you want to look for tax-efficient vehicles to invest in, and that's also how you can not miss out on the opportunity to invest in tax-free investment. So this is something that hasn't been around forever. It's been recently around, in the last five years or so that the tax-free investments were introduced, and that is a huge, huge bonus for us when it comes to investments. So you are allowed 36,000 Rand per tax year to invest into tax-free investments and currently 500,000 in your lifetime to invest in tax-free investments. So this is great because any growth on it is exempt from the capital gains taxes. Any interest on there is also exempt from taxes. So it's an excellent, excellent vehicle to utilize pool investments.
Speaker 2:And I just also want to highlight something important here is that you know some people will think I've invested. Here's my tax-free that's sitting at 20,000. Let me withdraw 10,000 from it, right, because I might need that money. That does not then allow you an additional 10,000 to it. So just remember that you will still have that. So 36,000 rand limit for the year. It doesn't increase because you've done a withdrawal on your interest. So just be aware of that. It's also just you. You know it's also meant to be a long-term, you know, because at least you've been. Long-term growth and rewards in that investment. Doctor, do you have any questions about it?
Speaker 1:Yeah, you know, listen, I think that that has summed it up in a microcosm, because you know if you start somewhere and if you have a goal in sight.
Speaker 1:I love the way you just really categorize it into what are you really aiming for? Are you aiming for retiring or are you aiming for holiday? So is it a short term or is it a medium term goal or is it a long term goal? Because I think you have to base that not only on the goal, on the amount of time that you're doing and the amount that you're putting in, but it also has a tax repercussion, and you know. That's why we need to look towards people like yourself that you know and PPS, because what they've done is they were able to give us a little bit of a background, of knowing now how it is that we can aim towards financial health. So, thanks very much. That, I think, is a great start, and we're looking forward to the rest of our series with you so that we can start getting all of these things that we avoid in life done Absolutely.
Speaker 2:Happy to hold your hand through it all.
Speaker 1:Thank you so much for that yes, and we're very grateful for it.
Speaker 1:Thank you, have a good one everyone, take care Bye-bye, grateful for it, thank you, have a good one. Everyone, take care, bye-bye, thank you. Have you ever wished you could be rubbing shoulders with the best just to get through your worst? Never get the promotion and exceed the requirements. Join us to hear about strategies to build your brand, diversify your business, pursue your career passions with job crafting and self-care for healthcare practitioners. Hear about great products that can help you to get to where you always wanted to be. So remember you are, are heard and you are seen, and on this platform, you are absolutely invited. Let's make it happen together.