Real Client Case Study That Uncovered R1.6M in Avoidable Tax
The Enough Club Podcast
407 views
Book a meeting with me if you want to run the actual numbers on your individual situation:
↳ https://shorturl.at/uOkU5
She came to us believing she couldn't retire until 65. Maybe 70.
She was wrong.
She's 55. Senior executive at a listed company. R10 million in her pension fund. A salary of R250,000 a month. R50,000 sitting spare every single month — parked in a money market account because nobody ever told her what to do with it.
In this episode, Bryan opens his actual financial planning software and walks through a real client case study — numbers, graphs, scenarios, tax implications, and all. No theory. No rules of thumb.
Just the exact process a flat-fee financial planner uses to answer the question: invest or pay off debt first?
What you'll see modelled in real time:
What happens when you invest that R50k surplus every month instead of paying off the bond — and how long the money lasts
What happens when you throw everything at the bond first — and how long the money lasts
Why the difference between the two scenarios isn't what anyone expects
The tax trap hiding inside the "just invest more" option — and why getting to the same outcome costs R1.6 million extra in tax
The single lever that moves retirement from age 86 to age 101 — and it's not earning more or spending less
The answer Bryan expected going into this planning session wasn't the answer that came out of it.
The case study makes more sense if you've seen EP14 first — that's where we show why most South Africans are solving the wrong equation:
↘ Invest or Pay Off Debt? The Tax Calculatio...
If you've ever wondered whether your financial plan is actually optimised for your situation — or whether you've been making decisions based on someone else's rule of thumb — this is the closest thing to sitting in a real planning meeting without booking one.
3 Comments
Real Client Case Study That Uncovered R1.6M in Avoidable Tax
The Enough Club Podcast
407 views
Book a meeting with me if you want to run the actual numbers on your individual situation:
↳ https://shorturl.at/uOkU5
She came to us believing she couldn't retire until 65. Maybe 70.
She was wrong.
She's 55. Senior executive at a listed company. R10 million in her pension fund. A salary of R250,000 a month. R50,000 sitting spare every single month — parked in a money market account because nobody ever told her what to do with it.
In this episode, Bryan opens his actual financial planning software and walks through a real client case study — numbers, graphs, scenarios, tax implications, and all. No theory. No rules of thumb.
Just the exact process a flat-fee financial planner uses to answer the question: invest or pay off debt first?
What you'll see modelled in real time:
What happens when you invest that R50k surplus every month instead of paying off the bond — and how long the money lasts
What happens when you throw everything at the bond first — and how long the money lasts
Why the difference between the two scenarios isn't what anyone expects
The tax trap hiding inside the "just invest more" option — and why getting to the same outcome costs R1.6 million extra in tax
The single lever that moves retirement from age 86 to age 101 — and it's not earning more or spending less
The answer Bryan expected going into this planning session wasn't the answer that came out of it.
The case study makes more sense if you've seen EP14 first — that's where we show why most South Africans are solving the wrong equation:
↘ Invest or Pay Off Debt? The Tax Calculatio...
If you've ever wondered whether your financial plan is actually optimised for your situation — or whether you've been making decisions based on someone else's rule of thumb — this is the closest thing to sitting in a real planning meeting without booking one.
On paper, investing in an aggressive fund while carrying the debt should give a better outcome, but there is no guarantee of a steady 10-12% annual growth in that period. Fees & tax will also erode investment value.
Paying off the debt, gives a guaranteed return, with no risk, tax , or additional cost (other than opportunity cost).
The other real risk is in employment duration. Senior managers are often at risk of being forced out of their company by restructuring & cost cutting exercises. This risk would probably also involve a retrenchment package (+ve) but would also affect the tax liability of any future lump sum withdrawals from the pension fund.
Having a “Plan B” for employment is important once you pass age 55 unless you have already reach FI.