One of the most common question I receive is, “Where do I start investing?” With this in mind, I recently interviewed Adrian Hope-Bailie, founder of Fynbos Money, about this new investment platform, and how he aims to simplify the investment process for people who want to start putting some money away.
With thousands of unit trusts, ETFs and other investment vehicles available, it is unsurprising that people feel overwhelmed by this abundance of options.
Adrian saw that the average South African wanted things to be simplified – both in terms of options and administration – and this motivated him to create Fynbos Money.
The company focuses on emergency funds, goal-focused savings, and tax-free investment accounts.
An emergency fund is the first step to financial wellness, and we should focus on having some liquidity for emergencies. If we have this safety net, we do not have to dip into our long-term investments when unexpected expenses arise. We also need savings for short-term goals and longer-term investments.
But that means having separate accounts and investments for emergencies, short-term savings, and long-term investments. The key behind the Fynbos Money model is that it allows users to set up a single debit order that allocates funds to various savings and investment goals.
Thus, users can focus on their financial future without having the stress of managing multiple accounts.
Adrian believes that fees should reflect the value provided, and has opted for a flat-fee model rather than percentage-based fees that can eat into investment returns.
Two plans are available:
- The Roots plan is free to use but only offers access to an emergency fund and a range of five TFSAs.
- The Protea Plan is R100 a month and provides TFSAs for the whole family (including the children), as well as the ability to set other savings goals – all with a single debit order.
Listen to the full podcast, where I ask Adrian deeper questions about who is behind Fynbos Money, how they keep investors’ funds safe, how they select funds, and their future plans.
This podcast was sponsored by Fynbos Money.
Very interesting podcast. I am interested emergency savings. I just need clarity on the follwing; (i) is there a minimum account that one needs to save on monthly basis?(ii) how much are the interests to be earned for which amounts? (iii)how do I access that money when I need it? and (iv) how quickly would I get that money when I need it?
I assume you mean on the Fynbos platform? This is what they told me:
Our minimums are R100 via EFT and R500 via debit order.
The minimum one “needs” to save is a subjective question which we can’t really answer.
The emergency savings are currently returning 8.4% via the Allan Gray Money Market fund.
To access the funds you simply initiate a withdrawal via the platform.
These are done via EFT immediately and so usually pay out the same day or next day.
In an emergency we can do an instant EFT if the user requests it via our support channel.
We’ll make that something they can do via the platform soon although it may have an additional cost.