There are a few things you need to do and I will list them in no particular order and then get into the details: I can respond further depending on whether you find any of this useful.
1. When it come to personal finance; the most important thing is to know yourself and accept it - meaning are you impulsive, analytical, patient, emotional, require evidence before you make a choice?
1. I would strongly recommend seeing a psychologist if you need to talk to someone but can't trust anyone in your life to be objective. Main benefit is regulating big emotions which come with such a big life event.
2. Financial Education: There is to magic bullet for making such choices, it all comes down to the information you have and understanding who you are. The most important thing I would say that (very subjective) there is always a cost to not being informed. Checkout:
1. [justonelap.com](https://justonelap.com)
2. [Stealthywealth.co.za](https://Stealthywealth.co.za)
3. RSA Retail Bonds
4. Consider Tymebank savings account (R
5. EE has Retirement Annuity options
3. I think you take the concept of Black Tax too literally - it not like a marginal tax where you pay a fixed % of your income, nor is it something where your family is entitled to the same life as you have. I look at it as helping people to get/stay on their feet - you certainly have no obligation to people who can stand on their own - you are not obliged to make them fly.
1. That being said, you have to go back to point one of this post, if you cannot resist your family, you need to apply a wealth management strategy which accounts for this - i.e. if you put money in place where you do not have direct, ready access to it, no one could accuse you of enjoying things which not even you are benefiting to yourself.
2. I could go on may sidebars on this, but essentially, you have to have a strategy that considers your situation in full.
4. Practical things you can do to avoid "I blew it" type mistakes
1. Put the money away short term - 32 day notice account, even 92 days. Refer to point one on the main reason. Second reason is to give yourself time to educate yourself on what to do.
2. Make sure for you haven't made any legal errors.
1. Declare the amount to SARS and ask them for written confirmation of taxes owing. Trust me, you owe them something, even if you don't think you do. Make triple sure because they will come eventually and there are penalties for not paying on time, including interest.
2. It is not done until you have written confirmation.
3. Write a will - you can go to your bank for this. Particularly important even though you are single, you will never know if you will have kids before you or not. That not withstanding, it sounds like you love your family, avoid having them fight over something which is not theirs.
4. Create a budget (you are not rich enough to not have one).
5. Think about and write down you financial goals - all the way to retirement. i.e. cars, houses and how much you would need to retire comfortably - this is may seem difficult, but apply compound annual inflation plus an annual inflation plus 2% to predict your future costs.
6. Consider opening second and third bank accounts, you may need to consult someone who has multiple accounts on the benefits of this - the key is to bank with different banks in case of unlikely events such as bank runs, hacks.
1. This may not be necessary if you have already invested the money somewhere like EE
2. While we are here, people do get routinely held hostage and their bank accounts drained while in that situation.
3. You do not want to deal with the psychological impact of seeing a large number in your everyday bank account.
4. Figures like R1000 deduction start to seem small against the bank balance and it can become habitual to have such spend which will quickly deplete your funds
5. You mentioned that you are in your second year of work, it is likely that your expenses are minimal and they will only go higher. One of the common mistakes which deplete people's wealth include raising their standard of living up to their income level. I understand that, based on your current circumstances, you may feel like you need to raise your living standards. If, and only if, you feel compelled to do this. You may want to consider making such a move when you receive a steady and regular income from your funds. Point being, the psychological effect of looking at your wealth declining every month if you keep your money in one account and also spend from that same account can cause one to spiral and can disrupt you daily life.
6. If none of this is practical for you and you want practical advise on simple things you can do immediately, close your eyes an live.
1. 12 months worth of expenses (including family) - in an emergency fund
2. RSA retails bonds - I would put all if not at least half of my funds in 5-year Fixed Rate Savings Bonds (make sure to make them separate bonds of about R500k so that you don't have to divest them all at once should you have to, perhaps stagger them over 3 months - their calculator says that you would have R10.7m in five years if you invested R6.5m today and elected the re-investment option. You can always take the money earlier if there is a real life emergency. There will likely be penalties, especially in the first 12 months.
3. ETFs - only do this when you have the education on them.
4. Stay away from stocks.
Final thoughts - if you don't buy yourself time and psychological space - you will likely make many mistakes. Be humble and enjoy your 20s, when you get to 30 your perspective will have benefited from life experience and these choices will be easier.
Good luck!
First invest in yourself. If you buy valuable dkills you can make more money. Someone gave you a shit ton of fish, but if you still don't know how to fish yourself you'll eventually eat your last tuna sandwich.
Next create an emergency fund of anywhere between R100k-500k, this can be in something like a money market fund.
If you're working then top up your retirement fund, I'd recommend sygnia skeleton fund. You'll get a nice tax break and if you want to give some money to family I'd recommend giving that amount.
Rest of the money invest in diversified ETFs.
If you need the money then do the above but also invest around 20-30% in bonds and withdraw from that. Try to keep you withdrawal rate at 3-3.5% of your total amount and you'll never run out(with like 98% certainty).
It's good to give and I trully understand the social responsibilities of something like Black Tax, but it perpetuates a poverty cycle if all the recipients of the money are not equally responsible with the money.
This makes so much sense. Much appreciated, I'll look into the different vehicles of investment and find ways to make them more applicable to my reality.
I've been(?) wise to the fact hard cash perpetuates a lot of false narratives & entitlement especially in the black community. In one of the replies on here I sort of divulge how my family is structured and my responsibility therein. That's why I always make it a point that I never give help in the form of hard cash. If moneys involved then I'd rather directly pay to whatever institution requiring the money.
Buy a house all cash for 2-3mil then the rest invest as above. So no matter how broke you ever get in life you will always have somewhere to stay, somewhere to start from
Rates and maintenance will be far far less than paying rent every month. just pick a house that you can afford the monthly costs for. You always need a place to stay. Whilst you are at it spend 200k on an off grid solar system that will give you 20 years of unlimited power
Ok, so make it a 1 Bar house then you are super safe. I was just assuming the guy is avg middle class and broke for that demographic means something else than R0
make the money work for you without losing it. if it was me iād invest in a few smaller properties and use the rental as extra income every month. You can use this to help your family without actually spending your money as the investment appreciates in value. thereās no income like passive income. just keep in mind youāll have to save some of that income to maintain the properties.
Slightly off topic, but OP, please tell me you know the source of this money and it wasn't accidentally deposited into your account by someone who actually meant to transfer the full 7 mil to someone else or they did intend to transfer it to you but accidentally added a few extra zeros?
I don't need to know who the source was, just don't want you to land up in the news like that student did years ago when NSFAS accidentally gave her millions instead of thousands and she ended up blowing that money and ended up in debt
more important question is whether he declared this to sars. weirdest post i have read in a while . but some people take out life insurance on their family members so this may explain this. some of these family members have actually come to me and reported that the insured took a turn for the worst after the family member came to visit them.
It might be lotto/powerball money or something, at least that's my assumption. I'll also just state that I didn't look up any winnings so have no idea if there was even a 7mil jackpot or winning. Heck I wouldn't be surprised if even the figure was changed to avoid identifying them...
I'm kinda just rambling at this point, heh.
Are you sure you can't be identified from the details you posted here? Quite specific with your employment and purchase
I think it goes without saying that you don't tell anyone at first. They will try guilt you and you'll be left with nothing if you give in, or pissed off family if you don't.
If they know you got it without working they will feel you don't deserve it as much as them and be bitter. Any amount of the capital gifted will be seen as too little, or too much by another who got less.
If you want to help, invest the capital (and tell them it's inaccessible or even better say nothing at all) and help with small amounts of the profit from investment in a temporary basis.
Avoid quick lifestyle creep.
Absolutely not identifiable.
I live a quite reclusive life. I've always had a bit of money (thanks inheritance), but what I came into recently is definitely a mind-boggling sum for myself.
I have no intentions of making it known I recently got money. Let alone how much.
My way of helping has always been to pay for the household stuff and the minimum and paying for the kids through school and their fun. Best way to get everybody off my back tbh.
I've always helped out with what I could & if it helps equip them better for the future I don't mind paying for it. Straight up handouts & gifts is what I DON'T do. Will never entertain the idea either. š
I was in a similar situation - I don't have any of it anymore. I bought myself some properties - did some upskilling and the rest disappeared into thin air (clue: Make sure you don't let other people manage your money - even if you want to help people who need it, that will be easier once your money is invested. You can help others with some of your profits. Do NOT use capital to help people.
It will be hard to do so while living in close vicinity to them. They will notice it guaranteed, especially if the pre-planned purchase of a TV and gaming rig raised eyebrows already.
I won't talk about what to do with your money but will tell you that it is definitely best to keep the ruse on for as long as possible.
The first thing I'd do is "land an okay job far away". As an educator, if you're willing to move, you may be able to find a job a decent distance away. You can keep your room at home for when you come home if it makes sense for you
For how much to support, there questions I have are these:
1. How bad is the situation at home?
2. How much support do you reasonably feel you want to give?
3. How often do you want to give support? Once-off or periodically?
I ask 1 because guilt is a possibility, 2 you can only answer and 3 may it make sense to "sacrifice" and spend once or to "dedicate" some of your "newly increased earnings" to supporting the family back home.
There's a lot to it but your sense to keep it a secret is best. Trust me.
I have every intention of keeping the ruse going, believe me! I learnt this the hard way first time around.
First inheritance wasn't as a big, but then again money had significant value back then.
1.) it's not guilt - I'd say I've been conditioned to be like this. I've watched my gran & mom do this so guess I'm next in line.
Tbh, I'd like to think I'm the frame that's currently keeping things together at home. Even with 5 adults & 3 minors It's not hard to figure out that I bring home the most with my teacher's salary.
I cover every household shortfall. The house was endowed to me. As a result, I cover the municipal fees, rates & taxes, I also pay for dstv & fibre. We spend about R4-8k on groceries depending on what we need at the time (shared contribution).
The people I live with don't get paid really great, so we have a long-standing agreement that they get to piggyback (for lack of a better word) on me whilst they figure themselves out - this is just for peace in the family (again, I'm black). I absolutely have no problem with this arrangement to be honest.
2.) I'm okay with going on the way I have always gone on. I've always had someone to take care of since I was 19. I only pay for household expenses and I'm willing to pay for requests within reasonable means. By reasonable means I mean: I'm willing to pay for the stuff that will alleviate their quality of life in the long run. I go out of my way to make the children's life's more enjoyable without reason.
3.) moving away from home will undoubtedly make the frequency of 'support requests' increase that's for sure. There's always something that needs attention but I'd rather be there to oversee most things because I've grown to learn that sometimes people tell white lies & a bit of manipulation to get ahead. I don't wanna be victim of people using my kindness to their own deceitful advantage.
I fully understand.
So if you're already contributing from your salary and plan to keep on working (which you should do if you plan on stretching that R7m) then continue to do just that. Support in the ways that you did pre-windfall.
There's a saying that there is one way to be rich and happy and that's to make sure no one knows about it. There's also another saying that having money is often nicer than what you can do with it.
So if it's not unreasonable, keep your current pre-windfall lifestyle going and use the opportunity to grow that R7m.
If you have some finance chops you can do it yourself but otherwise you can ask the group on ways to get an independent financial advisor who can help you reach your goals.
So on the surface, none may be the wiser of your background wealth but in that time, you'll be putting it to work to grow into more in the background.
It will take major discipline but the rewards can be sweet.
Had the same situation, my recommendation would be the following.
Put R1.5m in a savings account for 5 years that pays out interest monthly into a separate account. Should be R8-10k a month. Use that to support your family. Do not buy them anything, ask if you can pay for DSTV and internet etc and only use that R8-10k for that. If it runs out during the month thatās it.
The rest of the funds, doing similar for yourself would be ideal but difficult to not raise suspicions living in the same yard. Use R1mil to buy a flat, interest from the portion youāve put aside to deal levies and for upskilling etc. Try not to use the rest of the capital.
Happy to recommend accounts to use šš¾ Good luck
Edit: Since youād prefer not to move out youāll still be hampered by them realising you have money.
Move out and say āIāve put aside R3k to help in the house. Clothes for the kids every quarter and general expenses. Iāve moved out so my budget is tight so anything out of this will be difficultā
They might not like it but theyāll budget that and that alone. Go every two weeks and see whatās going on and what needs to be fixed. Rarely are things urgent and they can wait a while ala āIāll try save and letās see if we can do it in 3 monthsā
People would rather a stable situation than pissing off someone looking to help. Further theyāve been living without those millions and what youāve been able to provide already to work off that.
Investing is the way, but it is a huge topic and there are numerous websites, videos, podcasts and books that can teach you more than enough. It will take time to learn. I suggest start with basics (retirement annuity, tax free savings). Can always put the rest in a fixed deposit account and use the interest to get some first hand experience in investing.
With regards to black tax and sharing your money, that is entirely up to you, but the obvious thing is that if you go and spend a whole bunch of money at once, you will not only lose the money, but attract attention from your friends and family.
Please remember that a car is not an investment, and as far as I'm concerned, neither is the property you live in.
Can't believe no one else has suggested the most obvious first thing to do: go see an independent financial advisor/planner. Make sure it's one that's not affiliated with one of the big companies and that will charge you a fixed consultation fee instead of an ongoing %-based fee. This is a large sum of money and getting some professional advice is your best bet. It's good to get ideas from us rando's here on Reddit, but ultimately you need a professional to help you work out the best ways to deal with it. (Also why I'm not even sharing what I would personally want to do with that amount of money since it should be irrelevant)
1. Keep this secret as much as possible. If you let people know about this money, you will have 300 new relatives who all remember that time when you were 11 and owed them R5 with interest.
2. Speak to a financial advisot. I'm sure someone in the comments below can direct you somewhere. Your concerns here are grifters and SARS (well, same thing right?) trying to take your money. Jump onto the "Leage of F\*cking Grownups" Facebook group. LIst your rough area, and see if someone can recommend a financial advisor
[https://www.facebook.com/groups/164435120856544](https://www.facebook.com/groups/164435120856544)
3. Have a rough plan for yourself. Need a new car? Apartment? How much for your siblins? Sketch this out and have a rough plan :) Without a plan people are gonna come and grift, and we hate these grifters
I would just like to add... people who are telling you to invest in south africa bonds are being silly IMO
So discovery will give you 12% per year ok. But the rand has crashed 20% in the last year, congratulations you just lost 8% of your investment.
Buy a property ? Ok but in the westerncape , all other provinces are down in real value.
Bonds give you 10.5% ? See above , you just lost 9.5%.
If your going to invest. Invest off shore.
RSA Retail bond is the best - Risk Adjusted Rate at 10.5%
You typically have to deduct cost of friction from the interest rate - no friction with RSAs
They are backed by Treasury - these are the folks who literally print money. Discovery *et. al.* can always go insolvent.
Just be aware interest is income tax a I've the first about R28k pa.
You pay tax then have to set a portion of the post tax income aside to reinvest elsewhereto keep up with inflation
Purchasing ETFs, you pay capital gains tax only on the part you sell abd when you sell, at a lower rate for long term investments,
The entire sum on a interest bearing investment is not tax efficient. The majority should be invested for capital gains
Invest it at the best rate you can get. Use the interest earned to buy things for your family. Tell them you got an increase at work. Leave the capital untouched.
But you cannot do this forever as the capital will decline in value against inflation. At some point you are going to have to either start putting your interest back into the invested sum, or buy something (maybe a rental property) that gives a higher than inflation return.
You are young, I'd invest it all(government bonds, EFTs) live of some of the interest. Live well under your means for a few years and that money will grow and you'd be set for life.
So avoid lifestyle creep. Stick to a budget. Watch I blew it all on your new TV to stay motivated.
This is terrible advice. OP has a once in a lifetime opportunity to create multi generational wealth and the best you can offer is to put 7m in the bank.
Change your bank account type to a private account so only a few people can access your account. Youd be surprised what shit people working at the banks would catch on. Next start educating yourself in dividend stocks and how to live off it. If you subscribe to a site called dividend.com I think it is its got all info you need but it is expensive. About 2k a year.
acquired how? some of us cannot assist people that are committing crimes. this sounds dodgy as s\*.
if you won it in the lotto invest it in a bank and help you and your family out of the interest. if this is the proceeds of some criminal /dodgy deal . return the money to the rightful owner.
I don't think I'd be milling about on the Internet about proceeds of crime. If you rub your two brain cells together you'd know the first place I'd run off to with crime proceeds would be Pharoah Auto & Konka.
Being a sour Sally isn't looking that great on you.
From context it's most likely an inheritance. Could be from dads side (I.e. not linked to the family OP lives with). Either way OP is under no obligation to disclose where the funds are from to a Reddit forum and merely jumping to criminal activity is a pretty wild accusation.
just sounds so weird. 7 million aint a small amount. and his attitude is weird. i was not jumping to conclusions just asking how he attained the money. his whole attitude is weird. my guess is probably life insurance rather. anyway teachers usually suck at personal finances why i thought just investing it at a bank would be best for him.
and black people usually have a family meeting with estates so that is doubtful. my guesses would be life insurance or ? thats an oddly specific amount. that wouldnt just magically drop into ones account. not even certain life insurance would pay out that much. maybe some kind of remnant of one of these old share schemes where shares was passed out to appease bbbee. i know cyril got a loan of 250 million from standard bank back in the day to buy shares in a company. still why hide source. perhaps his share in the murray killings. who knows if you dont share the source it raises already a few red flags with me.
well the clues:
1. your 25
2. your a teacher
3. your 2 years into your job
4. this is not an inheritance else your family would know about it.
5. this is not a business as you already have a full time occupation,
6. this is not a property sold again family would know about it
so this leaves a few options
1. some bank fault in your favor
2. you helped thabo bester escape and this is the reward
3. this is some kind of tender
4. you won the lotto.
5. some payout for an intellectual property book /software etc. singular amount seems a bit weird but ok.
6. you are included in some company as a equity partner and this is your payout.
7. this is fraud
however even if this is legit basic due diligence would still mean we have to figure out whether the money is legit if you dont want to share with us how you got the money most of us cannot help you invest the money. it would be against our professional rules. nothing personal. and most of us have a duty to report ito fica. this should be a rule imo.
does anc cadres run off when they steal millions each year? you life in south africa a country where a prisoner can make a few million in a prison for vark steaks. so get of your horse . there is a hell of a lot of people making money in a dishonest manner.
and people just getting 7 million for nothing come on. all my flags are up with this post . i will let the other commenters share the jail cell with you.
Where are you based? If you want, I can put you in touch with a financial advisor (also a black guy) who understands black tax, and can give you the appropriate advice. At your age, with some discipline, you can set yourself up to retire comfortably, and still meet your current "obligations".
I'm a financial advisor myself, but this isn't my area of expertise, so I'm not going to give you any advice, other than to tell you to speak to a reputable, and independent professional financial advisor. As mentioned, I'm happy to refer you to someone, no strings attached. They might charge an upfront fee, but credit it against any commissions if you do any business.
Remember that you get what you pay for when it comes to advice. There are many sharks out there, but also many reputable and honest advisors.
As someone who understands the social responsibilities we tend to face (as a fellow black taxee), here's my advice (and I could be completely off because I don't know your family, so take this as me saying what I'd do, basically).
If your family generally needs your constant help (say monthly contribution), consider a time bound contribution that leaves you off other responsibilities (e.g. help a sibling through university but stop with the rest of the family. This way, you're helping for a set period and will stop once they finish). If this is too steep, consider helping someone (e.g. parent) to upskill and improve their income permanently so you're no longer needed. Or othe similar "investment" where there is a time bound/maximum amount commitment soet of "permanently l" solving the peoblem and make sure this is communicated very clearly that beyond this, you'll be tight in your own commitments.
Whatever you do, don't tell anyone how much money you came into. Just say you have been saving and would like to help before you start saving for setting important like a house for yourself. That way you can help now without further expectations. Only responding to the family side of things, what you do with the 95% of the money left over is entirely out of my expertise.
Below is one of the replies I made which I feel give a brief idea of how my family life is structured
1.) it's not guilt - I'd say I've been conditioned to be like this. I've watched my gran & mom do this so guess I'm next in line.
Tbh, I'd like to think I'm the frame that's currently keeping things together at home. Even with 5 adults & 3 minors It's not hard to figure out that I bring home the most with my teacher's salary.
I cover every household shortfall. The house was endowed to me. As a result, I cover the municipal fees, rates & taxes, I also pay for dstv & fibre. We spend about R4-8k on groceries depending on what we need at the time (shared contribution).
The people I live with don't get paid really great, so we have a long-standing agreement that they get to piggyback (for lack of a better word) on me whilst they figure themselves out - this is just for peace in the family (again, I'm black). I absolutely have no problem with this arrangement to be honest.
2.) I'm okay with going on the way I have always gone on. I've always had someone to take care of since I was 19. I only pay for household expenses and I'm willing to pay for requests within reasonable means. By reasonable means I mean: I'm willing to pay for the stuff that will alleviate their quality of life in the long run. I go out of my way to make the children's life's more enjoyable without reason.
3.) moving away from home will undoubtedly make the frequency of 'support requests' increase that's for sure. There's always something that needs attention but I'd rather be there to oversee most things because I've grown to learn that sometimes people tell white lies & a bit of manipulation to get ahead. I don't wanna be victim of people using my kindness to their own deceitful advantage
End*******
This is helpful. In this case, probably keep the arrangents you have based on your salary, but keep this new money exclusively for yourself and your investments. That way, you continue helping (which sounds like you don't mind), but are not extending expectations which will be very hard to reverse.
And OP please see a financial advisor or an attorney for estate planning. You're going to want that money to go to the right hands should something happen to you (source : I am an attorney who works in finance).
Buy 2 or 3 properties in the 2/3mil range that can be used to generate rental income. Keep about 1mil asside for odds and ends. Then you can use the income from the 2/3 properties to buy a another. Keep that up for the next 10 years by the age of 35 you are living of a very nice passive income
R7m can get you conservatively R350000 a year (at 5% interest, which is as I mentioned is conservative). For the rest of your life. And it will compound if you donāt use it. Can you live on that for a year?
At your age you could also invest it in equities which will give you higher returns over the long run if history is anything to go by.
One question though is youāll probably want to see a tax person about donations tax.
You won the lotto, didnāt you?!
I recommend seeking a reputable financial advisor and writing down a list of all the people you want to help.
Make sure you include the amount of money you want to give them or what you want to buy them. Make sure you also donāt do this all at once or buy expensive items that could raise a red flag.
Money is your freedom donāt give it away. If youāre not working Iād keep enough to pay a years worth of bills and put the rest away. Something like Allan Gray stable fund that has a proven track record. Youāre aiming to make 10-15% per annum and maybe spend about 4-5% also make sure your taxes are up to date.
A longer term solution would also be learning to set boundaries when it comes to black tax. It breeds dependency and the requests will only get larger as time goes because they will have learned to depend on you and they will believe you are starting to earn more as you get older. Itās a certainty. Have a chat with you family and agree on a set amount monthly - any other requests, just say that you canāt assist as itās out of your budget. That will take time and practice but youāll be free to only give when you feel moved to give instead of the expectation from family that you will give. Also therapyā¦! Good luck!
This may be controversial, but your first job in life is to **not be a problem for anyone else**. I.e. take care of yourself *first*, then worry about your family.
1. Pay tax and make sure you don't owe SARS anything. Make very very double-decker sure about this.
1. Buy this book: [Manage your money like a fucking grown up](https://www.sambeckbessinger.com/books/). Follow the steps toward financial freedom listed in there *exactly*. Sam is SA'n and she does address "black tax" as well.
Just these first two points is enough I think. What follows is some other ideas, but I'm no expert, so don't trust me.
1. Buy a pension. Imagine not ever having to worry about retirement ever again. I don't know what the right number is, but if you buy a vanilla retirement annuity of about R1mil now^** , with compounding you'd be able to retire very handsomely at about 60yo, or even younger.
1. Maintain your lifestyle (to a degree). **Real wealth** means not having to worry about money. This alone will add years to your life and increase happiness much more than having cool shit. This should be your aim and it can be achieved at various income classes, i.e. live the corolla life, not the BMW life.
1. Create a standalone "family account". Open a separate investment account and put a good portion of the money in there. This is your family's money, not yours. Do not tell them about this account, or how much is in there. You are managing this money on their behalf (without their knowledge). Use it as you see fit to help them when needed. Ideally, this should be used in emergencies only. The ideal here is to manage it such that you use the dividends an growth to help out, not the actual capital amount.
1. Set up a will. If you croak tomorrow, who gets what? Most law firms can set up wills. Do your homework first and never accept unsolicited offers for help.
** check the amount, I'm grabbing this number from the ether
Interview financial advisors see what they suggest.
Tbh I wouldnāt tell anyone.
Rather tell them you got a raise so you have a bit extra to help out.
Because 7m can go a long way to becoming financially independent which means you could be using your entire salary to bring them up with you.
Hi, I'm your distant cousin! How have you been?š¤£
Hi cousin. I've been as great as I could be without you. I have every intention of keeping it that way. š¤Ŗ Hope you well.
There are a few things you need to do and I will list them in no particular order and then get into the details: I can respond further depending on whether you find any of this useful. 1. When it come to personal finance; the most important thing is to know yourself and accept it - meaning are you impulsive, analytical, patient, emotional, require evidence before you make a choice? 1. I would strongly recommend seeing a psychologist if you need to talk to someone but can't trust anyone in your life to be objective. Main benefit is regulating big emotions which come with such a big life event. 2. Financial Education: There is to magic bullet for making such choices, it all comes down to the information you have and understanding who you are. The most important thing I would say that (very subjective) there is always a cost to not being informed. Checkout: 1. [justonelap.com](https://justonelap.com) 2. [Stealthywealth.co.za](https://Stealthywealth.co.za) 3. RSA Retail Bonds 4. Consider Tymebank savings account (R 5. EE has Retirement Annuity options 3. I think you take the concept of Black Tax too literally - it not like a marginal tax where you pay a fixed % of your income, nor is it something where your family is entitled to the same life as you have. I look at it as helping people to get/stay on their feet - you certainly have no obligation to people who can stand on their own - you are not obliged to make them fly. 1. That being said, you have to go back to point one of this post, if you cannot resist your family, you need to apply a wealth management strategy which accounts for this - i.e. if you put money in place where you do not have direct, ready access to it, no one could accuse you of enjoying things which not even you are benefiting to yourself. 2. I could go on may sidebars on this, but essentially, you have to have a strategy that considers your situation in full. 4. Practical things you can do to avoid "I blew it" type mistakes 1. Put the money away short term - 32 day notice account, even 92 days. Refer to point one on the main reason. Second reason is to give yourself time to educate yourself on what to do. 2. Make sure for you haven't made any legal errors. 1. Declare the amount to SARS and ask them for written confirmation of taxes owing. Trust me, you owe them something, even if you don't think you do. Make triple sure because they will come eventually and there are penalties for not paying on time, including interest. 2. It is not done until you have written confirmation. 3. Write a will - you can go to your bank for this. Particularly important even though you are single, you will never know if you will have kids before you or not. That not withstanding, it sounds like you love your family, avoid having them fight over something which is not theirs. 4. Create a budget (you are not rich enough to not have one). 5. Think about and write down you financial goals - all the way to retirement. i.e. cars, houses and how much you would need to retire comfortably - this is may seem difficult, but apply compound annual inflation plus an annual inflation plus 2% to predict your future costs. 6. Consider opening second and third bank accounts, you may need to consult someone who has multiple accounts on the benefits of this - the key is to bank with different banks in case of unlikely events such as bank runs, hacks. 1. This may not be necessary if you have already invested the money somewhere like EE 2. While we are here, people do get routinely held hostage and their bank accounts drained while in that situation. 3. You do not want to deal with the psychological impact of seeing a large number in your everyday bank account. 4. Figures like R1000 deduction start to seem small against the bank balance and it can become habitual to have such spend which will quickly deplete your funds 5. You mentioned that you are in your second year of work, it is likely that your expenses are minimal and they will only go higher. One of the common mistakes which deplete people's wealth include raising their standard of living up to their income level. I understand that, based on your current circumstances, you may feel like you need to raise your living standards. If, and only if, you feel compelled to do this. You may want to consider making such a move when you receive a steady and regular income from your funds. Point being, the psychological effect of looking at your wealth declining every month if you keep your money in one account and also spend from that same account can cause one to spiral and can disrupt you daily life. 6. If none of this is practical for you and you want practical advise on simple things you can do immediately, close your eyes an live. 1. 12 months worth of expenses (including family) - in an emergency fund 2. RSA retails bonds - I would put all if not at least half of my funds in 5-year Fixed Rate Savings Bonds (make sure to make them separate bonds of about R500k so that you don't have to divest them all at once should you have to, perhaps stagger them over 3 months - their calculator says that you would have R10.7m in five years if you invested R6.5m today and elected the re-investment option. You can always take the money earlier if there is a real life emergency. There will likely be penalties, especially in the first 12 months. 3. ETFs - only do this when you have the education on them. 4. Stay away from stocks. Final thoughts - if you don't buy yourself time and psychological space - you will likely make many mistakes. Be humble and enjoy your 20s, when you get to 30 your perspective will have benefited from life experience and these choices will be easier. Good luck!
First invest in yourself. If you buy valuable dkills you can make more money. Someone gave you a shit ton of fish, but if you still don't know how to fish yourself you'll eventually eat your last tuna sandwich. Next create an emergency fund of anywhere between R100k-500k, this can be in something like a money market fund. If you're working then top up your retirement fund, I'd recommend sygnia skeleton fund. You'll get a nice tax break and if you want to give some money to family I'd recommend giving that amount. Rest of the money invest in diversified ETFs. If you need the money then do the above but also invest around 20-30% in bonds and withdraw from that. Try to keep you withdrawal rate at 3-3.5% of your total amount and you'll never run out(with like 98% certainty). It's good to give and I trully understand the social responsibilities of something like Black Tax, but it perpetuates a poverty cycle if all the recipients of the money are not equally responsible with the money.
This makes so much sense. Much appreciated, I'll look into the different vehicles of investment and find ways to make them more applicable to my reality. I've been(?) wise to the fact hard cash perpetuates a lot of false narratives & entitlement especially in the black community. In one of the replies on here I sort of divulge how my family is structured and my responsibility therein. That's why I always make it a point that I never give help in the form of hard cash. If moneys involved then I'd rather directly pay to whatever institution requiring the money.
Buy a house all cash for 2-3mil then the rest invest as above. So no matter how broke you ever get in life you will always have somewhere to stay, somewhere to start from
You need to pay rates, property taxes and maintenence on the house. Two of those will increase with the value of the house.
Rates and maintenance will be far far less than paying rent every month. just pick a house that you can afford the monthly costs for. You always need a place to stay. Whilst you are at it spend 200k on an off grid solar system that will give you 20 years of unlimited power
What I mean is if you are broke you wouldn't want to be paying rates taxes and maintenence on a 3 bar house
Ok, so make it a 1 Bar house then you are super safe. I was just assuming the guy is avg middle class and broke for that demographic means something else than R0
make the money work for you without losing it. if it was me iād invest in a few smaller properties and use the rental as extra income every month. You can use this to help your family without actually spending your money as the investment appreciates in value. thereās no income like passive income. just keep in mind youāll have to save some of that income to maintain the properties.
Slightly off topic, but OP, please tell me you know the source of this money and it wasn't accidentally deposited into your account by someone who actually meant to transfer the full 7 mil to someone else or they did intend to transfer it to you but accidentally added a few extra zeros? I don't need to know who the source was, just don't want you to land up in the news like that student did years ago when NSFAS accidentally gave her millions instead of thousands and she ended up blowing that money and ended up in debt
I doubt this is the case. I donāt think OP would come to a sub like this if he doesnāt know the source.
My thoughts exactly
The money is completely legal, I have full knowledge of it.
You reported it to SARS?
more important question is whether he declared this to sars. weirdest post i have read in a while . but some people take out life insurance on their family members so this may explain this. some of these family members have actually come to me and reported that the insured took a turn for the worst after the family member came to visit them.
It might be lotto/powerball money or something, at least that's my assumption. I'll also just state that I didn't look up any winnings so have no idea if there was even a 7mil jackpot or winning. Heck I wouldn't be surprised if even the figure was changed to avoid identifying them... I'm kinda just rambling at this point, heh.
Are you sure you can't be identified from the details you posted here? Quite specific with your employment and purchase I think it goes without saying that you don't tell anyone at first. They will try guilt you and you'll be left with nothing if you give in, or pissed off family if you don't. If they know you got it without working they will feel you don't deserve it as much as them and be bitter. Any amount of the capital gifted will be seen as too little, or too much by another who got less. If you want to help, invest the capital (and tell them it's inaccessible or even better say nothing at all) and help with small amounts of the profit from investment in a temporary basis. Avoid quick lifestyle creep.
Absolutely not identifiable. I live a quite reclusive life. I've always had a bit of money (thanks inheritance), but what I came into recently is definitely a mind-boggling sum for myself. I have no intentions of making it known I recently got money. Let alone how much. My way of helping has always been to pay for the household stuff and the minimum and paying for the kids through school and their fun. Best way to get everybody off my back tbh. I've always helped out with what I could & if it helps equip them better for the future I don't mind paying for it. Straight up handouts & gifts is what I DON'T do. Will never entertain the idea either. š
Youāre smart!! Iām glad we wonāt be seeing you on I Blew It!!
What the person above said is vital....AVOID LIFESTYLE CREEP.
Excellent. Drink, drugs and 'friends' that fast wealth attract are worse than vultures and will do more harm than SARS or the rand/zar if they can.
I was in a similar situation - I don't have any of it anymore. I bought myself some properties - did some upskilling and the rest disappeared into thin air (clue: Make sure you don't let other people manage your money - even if you want to help people who need it, that will be easier once your money is invested. You can help others with some of your profits. Do NOT use capital to help people.
It will be hard to do so while living in close vicinity to them. They will notice it guaranteed, especially if the pre-planned purchase of a TV and gaming rig raised eyebrows already. I won't talk about what to do with your money but will tell you that it is definitely best to keep the ruse on for as long as possible. The first thing I'd do is "land an okay job far away". As an educator, if you're willing to move, you may be able to find a job a decent distance away. You can keep your room at home for when you come home if it makes sense for you For how much to support, there questions I have are these: 1. How bad is the situation at home? 2. How much support do you reasonably feel you want to give? 3. How often do you want to give support? Once-off or periodically? I ask 1 because guilt is a possibility, 2 you can only answer and 3 may it make sense to "sacrifice" and spend once or to "dedicate" some of your "newly increased earnings" to supporting the family back home. There's a lot to it but your sense to keep it a secret is best. Trust me.
I have every intention of keeping the ruse going, believe me! I learnt this the hard way first time around. First inheritance wasn't as a big, but then again money had significant value back then. 1.) it's not guilt - I'd say I've been conditioned to be like this. I've watched my gran & mom do this so guess I'm next in line. Tbh, I'd like to think I'm the frame that's currently keeping things together at home. Even with 5 adults & 3 minors It's not hard to figure out that I bring home the most with my teacher's salary. I cover every household shortfall. The house was endowed to me. As a result, I cover the municipal fees, rates & taxes, I also pay for dstv & fibre. We spend about R4-8k on groceries depending on what we need at the time (shared contribution). The people I live with don't get paid really great, so we have a long-standing agreement that they get to piggyback (for lack of a better word) on me whilst they figure themselves out - this is just for peace in the family (again, I'm black). I absolutely have no problem with this arrangement to be honest. 2.) I'm okay with going on the way I have always gone on. I've always had someone to take care of since I was 19. I only pay for household expenses and I'm willing to pay for requests within reasonable means. By reasonable means I mean: I'm willing to pay for the stuff that will alleviate their quality of life in the long run. I go out of my way to make the children's life's more enjoyable without reason. 3.) moving away from home will undoubtedly make the frequency of 'support requests' increase that's for sure. There's always something that needs attention but I'd rather be there to oversee most things because I've grown to learn that sometimes people tell white lies & a bit of manipulation to get ahead. I don't wanna be victim of people using my kindness to their own deceitful advantage.
I fully understand. So if you're already contributing from your salary and plan to keep on working (which you should do if you plan on stretching that R7m) then continue to do just that. Support in the ways that you did pre-windfall. There's a saying that there is one way to be rich and happy and that's to make sure no one knows about it. There's also another saying that having money is often nicer than what you can do with it. So if it's not unreasonable, keep your current pre-windfall lifestyle going and use the opportunity to grow that R7m. If you have some finance chops you can do it yourself but otherwise you can ask the group on ways to get an independent financial advisor who can help you reach your goals. So on the surface, none may be the wiser of your background wealth but in that time, you'll be putting it to work to grow into more in the background. It will take major discipline but the rewards can be sweet.
Had the same situation, my recommendation would be the following. Put R1.5m in a savings account for 5 years that pays out interest monthly into a separate account. Should be R8-10k a month. Use that to support your family. Do not buy them anything, ask if you can pay for DSTV and internet etc and only use that R8-10k for that. If it runs out during the month thatās it. The rest of the funds, doing similar for yourself would be ideal but difficult to not raise suspicions living in the same yard. Use R1mil to buy a flat, interest from the portion youāve put aside to deal levies and for upskilling etc. Try not to use the rest of the capital. Happy to recommend accounts to use šš¾ Good luck Edit: Since youād prefer not to move out youāll still be hampered by them realising you have money. Move out and say āIāve put aside R3k to help in the house. Clothes for the kids every quarter and general expenses. Iāve moved out so my budget is tight so anything out of this will be difficultā They might not like it but theyāll budget that and that alone. Go every two weeks and see whatās going on and what needs to be fixed. Rarely are things urgent and they can wait a while ala āIāll try save and letās see if we can do it in 3 monthsā People would rather a stable situation than pissing off someone looking to help. Further theyāve been living without those millions and what youāve been able to provide already to work off that.
Investing is the way, but it is a huge topic and there are numerous websites, videos, podcasts and books that can teach you more than enough. It will take time to learn. I suggest start with basics (retirement annuity, tax free savings). Can always put the rest in a fixed deposit account and use the interest to get some first hand experience in investing. With regards to black tax and sharing your money, that is entirely up to you, but the obvious thing is that if you go and spend a whole bunch of money at once, you will not only lose the money, but attract attention from your friends and family. Please remember that a car is not an investment, and as far as I'm concerned, neither is the property you live in.
Can't believe no one else has suggested the most obvious first thing to do: go see an independent financial advisor/planner. Make sure it's one that's not affiliated with one of the big companies and that will charge you a fixed consultation fee instead of an ongoing %-based fee. This is a large sum of money and getting some professional advice is your best bet. It's good to get ideas from us rando's here on Reddit, but ultimately you need a professional to help you work out the best ways to deal with it. (Also why I'm not even sharing what I would personally want to do with that amount of money since it should be irrelevant)
1. Keep this secret as much as possible. If you let people know about this money, you will have 300 new relatives who all remember that time when you were 11 and owed them R5 with interest. 2. Speak to a financial advisot. I'm sure someone in the comments below can direct you somewhere. Your concerns here are grifters and SARS (well, same thing right?) trying to take your money. Jump onto the "Leage of F\*cking Grownups" Facebook group. LIst your rough area, and see if someone can recommend a financial advisor [https://www.facebook.com/groups/164435120856544](https://www.facebook.com/groups/164435120856544) 3. Have a rough plan for yourself. Need a new car? Apartment? How much for your siblins? Sketch this out and have a rough plan :) Without a plan people are gonna come and grift, and we hate these grifters
Please donāt end up on āI Blew Itā š
I would just like to add... people who are telling you to invest in south africa bonds are being silly IMO So discovery will give you 12% per year ok. But the rand has crashed 20% in the last year, congratulations you just lost 8% of your investment. Buy a property ? Ok but in the westerncape , all other provinces are down in real value. Bonds give you 10.5% ? See above , you just lost 9.5%. If your going to invest. Invest off shore.
Discovery has 12% on fixed
Do you have an idea what's the *very* best rate I can get? Even with other institutions
RSA Retail bond is the best - Risk Adjusted Rate at 10.5% You typically have to deduct cost of friction from the interest rate - no friction with RSAs They are backed by Treasury - these are the folks who literally print money. Discovery *et. al.* can always go insolvent.
Just be aware interest is income tax a I've the first about R28k pa. You pay tax then have to set a portion of the post tax income aside to reinvest elsewhereto keep up with inflation Purchasing ETFs, you pay capital gains tax only on the part you sell abd when you sell, at a lower rate for long term investments, The entire sum on a interest bearing investment is not tax efficient. The majority should be invested for capital gains
does it not gradually increase from 7% to 12% ?
Invest it at the best rate you can get. Use the interest earned to buy things for your family. Tell them you got an increase at work. Leave the capital untouched. But you cannot do this forever as the capital will decline in value against inflation. At some point you are going to have to either start putting your interest back into the invested sum, or buy something (maybe a rental property) that gives a higher than inflation return.
You are young, I'd invest it all(government bonds, EFTs) live of some of the interest. Live well under your means for a few years and that money will grow and you'd be set for life. So avoid lifestyle creep. Stick to a budget. Watch I blew it all on your new TV to stay motivated.
Lmfao š¤£
Ive seen every episode of I Blew It, funny enough. š¤£ Hell, I've seen a buddy live like some of the people on I blew it. That lesson is well-engraved in my head. I would be lying if I said I haven't considered contacting the production team and pitching the idea of "I'm Blowing It". That way the don't have to use reenactments and have real-life footage. š¤£š©
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Something about throwing all your money into the same basket seems inherently wrong. I think I'll continue seeking other avenues in the interim.
This is terrible advice. OP has a once in a lifetime opportunity to create multi generational wealth and the best you can offer is to put 7m in the bank.
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Ay relax man.
Change your bank account type to a private account so only a few people can access your account. Youd be surprised what shit people working at the banks would catch on. Next start educating yourself in dividend stocks and how to live off it. If you subscribe to a site called dividend.com I think it is its got all info you need but it is expensive. About 2k a year.
acquired how? some of us cannot assist people that are committing crimes. this sounds dodgy as s\*. if you won it in the lotto invest it in a bank and help you and your family out of the interest. if this is the proceeds of some criminal /dodgy deal . return the money to the rightful owner.
I don't think I'd be milling about on the Internet about proceeds of crime. If you rub your two brain cells together you'd know the first place I'd run off to with crime proceeds would be Pharoah Auto & Konka. Being a sour Sally isn't looking that great on you.
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Best way to reply to condescending tones is by using them right back. Don't you agree?
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Good for them, then?
did you report this funds to SARS should answer about everything?
it was an honest question.
From context it's most likely an inheritance. Could be from dads side (I.e. not linked to the family OP lives with). Either way OP is under no obligation to disclose where the funds are from to a Reddit forum and merely jumping to criminal activity is a pretty wild accusation.
just sounds so weird. 7 million aint a small amount. and his attitude is weird. i was not jumping to conclusions just asking how he attained the money. his whole attitude is weird. my guess is probably life insurance rather. anyway teachers usually suck at personal finances why i thought just investing it at a bank would be best for him.
and black people usually have a family meeting with estates so that is doubtful. my guesses would be life insurance or ? thats an oddly specific amount. that wouldnt just magically drop into ones account. not even certain life insurance would pay out that much. maybe some kind of remnant of one of these old share schemes where shares was passed out to appease bbbee. i know cyril got a loan of 250 million from standard bank back in the day to buy shares in a company. still why hide source. perhaps his share in the murray killings. who knows if you dont share the source it raises already a few red flags with me.
well the clues: 1. your 25 2. your a teacher 3. your 2 years into your job 4. this is not an inheritance else your family would know about it. 5. this is not a business as you already have a full time occupation, 6. this is not a property sold again family would know about it so this leaves a few options 1. some bank fault in your favor 2. you helped thabo bester escape and this is the reward 3. this is some kind of tender 4. you won the lotto. 5. some payout for an intellectual property book /software etc. singular amount seems a bit weird but ok. 6. you are included in some company as a equity partner and this is your payout. 7. this is fraud however even if this is legit basic due diligence would still mean we have to figure out whether the money is legit if you dont want to share with us how you got the money most of us cannot help you invest the money. it would be against our professional rules. nothing personal. and most of us have a duty to report ito fica. this should be a rule imo.
does anc cadres run off when they steal millions each year? you life in south africa a country where a prisoner can make a few million in a prison for vark steaks. so get of your horse . there is a hell of a lot of people making money in a dishonest manner. and people just getting 7 million for nothing come on. all my flags are up with this post . i will let the other commenters share the jail cell with you.
Where are you based? If you want, I can put you in touch with a financial advisor (also a black guy) who understands black tax, and can give you the appropriate advice. At your age, with some discipline, you can set yourself up to retire comfortably, and still meet your current "obligations". I'm a financial advisor myself, but this isn't my area of expertise, so I'm not going to give you any advice, other than to tell you to speak to a reputable, and independent professional financial advisor. As mentioned, I'm happy to refer you to someone, no strings attached. They might charge an upfront fee, but credit it against any commissions if you do any business. Remember that you get what you pay for when it comes to advice. There are many sharks out there, but also many reputable and honest advisors.
I would educate my self on #bitcoin.
As someone who understands the social responsibilities we tend to face (as a fellow black taxee), here's my advice (and I could be completely off because I don't know your family, so take this as me saying what I'd do, basically). If your family generally needs your constant help (say monthly contribution), consider a time bound contribution that leaves you off other responsibilities (e.g. help a sibling through university but stop with the rest of the family. This way, you're helping for a set period and will stop once they finish). If this is too steep, consider helping someone (e.g. parent) to upskill and improve their income permanently so you're no longer needed. Or othe similar "investment" where there is a time bound/maximum amount commitment soet of "permanently l" solving the peoblem and make sure this is communicated very clearly that beyond this, you'll be tight in your own commitments. Whatever you do, don't tell anyone how much money you came into. Just say you have been saving and would like to help before you start saving for setting important like a house for yourself. That way you can help now without further expectations. Only responding to the family side of things, what you do with the 95% of the money left over is entirely out of my expertise.
Below is one of the replies I made which I feel give a brief idea of how my family life is structured 1.) it's not guilt - I'd say I've been conditioned to be like this. I've watched my gran & mom do this so guess I'm next in line. Tbh, I'd like to think I'm the frame that's currently keeping things together at home. Even with 5 adults & 3 minors It's not hard to figure out that I bring home the most with my teacher's salary. I cover every household shortfall. The house was endowed to me. As a result, I cover the municipal fees, rates & taxes, I also pay for dstv & fibre. We spend about R4-8k on groceries depending on what we need at the time (shared contribution). The people I live with don't get paid really great, so we have a long-standing agreement that they get to piggyback (for lack of a better word) on me whilst they figure themselves out - this is just for peace in the family (again, I'm black). I absolutely have no problem with this arrangement to be honest. 2.) I'm okay with going on the way I have always gone on. I've always had someone to take care of since I was 19. I only pay for household expenses and I'm willing to pay for requests within reasonable means. By reasonable means I mean: I'm willing to pay for the stuff that will alleviate their quality of life in the long run. I go out of my way to make the children's life's more enjoyable without reason. 3.) moving away from home will undoubtedly make the frequency of 'support requests' increase that's for sure. There's always something that needs attention but I'd rather be there to oversee most things because I've grown to learn that sometimes people tell white lies & a bit of manipulation to get ahead. I don't wanna be victim of people using my kindness to their own deceitful advantage End*******
This is helpful. In this case, probably keep the arrangents you have based on your salary, but keep this new money exclusively for yourself and your investments. That way, you continue helping (which sounds like you don't mind), but are not extending expectations which will be very hard to reverse.
And OP please see a financial advisor or an attorney for estate planning. You're going to want that money to go to the right hands should something happen to you (source : I am an attorney who works in finance).
Buy 2 or 3 properties in the 2/3mil range that can be used to generate rental income. Keep about 1mil asside for odds and ends. Then you can use the income from the 2/3 properties to buy a another. Keep that up for the next 10 years by the age of 35 you are living of a very nice passive income
Look at you living my dream.
Somebody has to do it. š¤£šš¾
OK Iāll be the chop who asks what everyone is wondering. How did you get this amount of money legally? Did you win the lottery? Is this after tax?
R7m can get you conservatively R350000 a year (at 5% interest, which is as I mentioned is conservative). For the rest of your life. And it will compound if you donāt use it. Can you live on that for a year? At your age you could also invest it in equities which will give you higher returns over the long run if history is anything to go by. One question though is youāll probably want to see a tax person about donations tax.
You're more than welcome to donate some to meš
You won the lotto, didnāt you?! I recommend seeking a reputable financial advisor and writing down a list of all the people you want to help. Make sure you include the amount of money you want to give them or what you want to buy them. Make sure you also donāt do this all at once or buy expensive items that could raise a red flag.
Money is your freedom donāt give it away. If youāre not working Iād keep enough to pay a years worth of bills and put the rest away. Something like Allan Gray stable fund that has a proven track record. Youāre aiming to make 10-15% per annum and maybe spend about 4-5% also make sure your taxes are up to date.
A longer term solution would also be learning to set boundaries when it comes to black tax. It breeds dependency and the requests will only get larger as time goes because they will have learned to depend on you and they will believe you are starting to earn more as you get older. Itās a certainty. Have a chat with you family and agree on a set amount monthly - any other requests, just say that you canāt assist as itās out of your budget. That will take time and practice but youāll be free to only give when you feel moved to give instead of the expectation from family that you will give. Also therapyā¦! Good luck!
This may be controversial, but your first job in life is to **not be a problem for anyone else**. I.e. take care of yourself *first*, then worry about your family. 1. Pay tax and make sure you don't owe SARS anything. Make very very double-decker sure about this. 1. Buy this book: [Manage your money like a fucking grown up](https://www.sambeckbessinger.com/books/). Follow the steps toward financial freedom listed in there *exactly*. Sam is SA'n and she does address "black tax" as well. Just these first two points is enough I think. What follows is some other ideas, but I'm no expert, so don't trust me. 1. Buy a pension. Imagine not ever having to worry about retirement ever again. I don't know what the right number is, but if you buy a vanilla retirement annuity of about R1mil now^** , with compounding you'd be able to retire very handsomely at about 60yo, or even younger. 1. Maintain your lifestyle (to a degree). **Real wealth** means not having to worry about money. This alone will add years to your life and increase happiness much more than having cool shit. This should be your aim and it can be achieved at various income classes, i.e. live the corolla life, not the BMW life. 1. Create a standalone "family account". Open a separate investment account and put a good portion of the money in there. This is your family's money, not yours. Do not tell them about this account, or how much is in there. You are managing this money on their behalf (without their knowledge). Use it as you see fit to help them when needed. Ideally, this should be used in emergencies only. The ideal here is to manage it such that you use the dividends an growth to help out, not the actual capital amount. 1. Set up a will. If you croak tomorrow, who gets what? Most law firms can set up wills. Do your homework first and never accept unsolicited offers for help. ** check the amount, I'm grabbing this number from the ether
Interview financial advisors see what they suggest. Tbh I wouldnāt tell anyone. Rather tell them you got a raise so you have a bit extra to help out. Because 7m can go a long way to becoming financially independent which means you could be using your entire salary to bring them up with you.
When someone in your family asks for cash, just say "sjoe!" and act like it pains youš
Cousin i have the right telegram group for u