An Investment Portfolio Without a Plan is Meaningless – The Human Side Of Money Presented By Client Care
Today most of the public still see a Financial Planners job to be picking investments, portfolio management and managing money. In reality, this task is not even second to what a real planner should be doing. A real financial planners’ primary role is exactly what the title says, financial planning.
The truth is that a portfolio has no other rational function than as a servant of a plan. The highest and noblest function of an advisor is planning for their clients. Likewise, the widely accepted assumption is that the primary determinant of investment success is portfolio performance, but it’s not, investor behaviour is, and this is where a real financial planner adds immeasurable value.
The second most important function of a planner is as a behaviour modifier, helping clients refrain from making emotional big mistakes that will destroy their well thought out plan. This is not to say that one’s investment portfolio is not important, it is, but only to the extent that it funds your plan which consists of your own unique personal goals and dreams.
Simple examples of goals are a retirement income that you can’t outlive or funding your grandkids tertiary education. These goals will vary and be unique to every person or couple. Everyone’s plan will be different, so should the accompanying investment portfolio based on a client’s available resources available and time.
This misunderstanding by most is understandable as the financial services industry serves itself with the narrative it spreads through it’s marketing strategies, implying that “they” have the golden bullet when it comes to investing. Another truth that I will touch on another time is that long term real-life returns are more dependent on asset allocation than fund selection.
Make sure that you have a plan that drives your investment portfolio, not the other way around. I see so many situations where the client’s money is the “client” and not the individual/couple or their family. Trust me if you don’t have a real plan, it is probably because this part takes time, honest and sometimes tough conversation and needs an understanding of who YOU are.
Are you worth it?
Dirk Groeneveld, Certified Financial Planner
t. 083 261 9287
Recent columns:
- Let’s talk about your budget
- Enjoy yourself, it’s later than you think!
- Financial Planning, What It Really Is
- Planning Retirement Properly: Turning Wealth Into a Life Well Lived
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Disclaimer:
This article is for information purposes only and does not constitute financial advice in any way or form. It is important to consult a financial planner to receive financial advice before acting on any information contained herein. Client Care and PWM and its directors, officers, and employees shall not be responsible and disclaim all liability for any loss, damage (whether direct, indirect, special or consequential) and/or expense of any nature whatsoever, which may be suffered as a result of, or which may be attributable, directly or indirectly, to the use of, or reliance upon any information contained in this article.
St Francis Soccer Club Players Enjoy Educational Port Visit
The young players of St Francis Soccer Club recently enjoyed a memorable and educational outing to Port St Francis, thanks to an initiative organised by the Kromme Enviro Trust.
The visit provided the boys with an opportunity to learn more about the local maritime industry while gaining insight into some of the organisations that play an important role in the St Francis community.
Learning About the Fishing Industry
The day began with a guided tour of Port St Francis led by Ant Sherren, who introduced the group to the local fishing industry.
Sherren shared valuable information about the harbour, commercial fishing operations and the contribution the industry makes to the local economy. The visit helped the youngsters gain a better understanding of an important sector that supports many families in the area.
Discovering the Work of the NSRI
The next stop was the National Sea Rescue Institute (NSRI) station, where the boys were welcomed by Garth Shamley.
During the visit, they learned about the lifesaving work carried out by NSRI volunteers and the vital role the organisation plays in keeping people safe on the water. The presentation highlighted the importance of teamwork, dedication and community service.
A Special Treat to End the Day
To round off the outing, PJ from the St Francis Ski Boat Club treated the young visitors to a delicious meal of calamari and chips.
The lunch provided a perfect ending to a day filled with learning, exploration and community engagement.
The Kromme Enviro Trust thanked all the hosts for their generosity, hospitality and willingness to share their knowledge with the boys.
Special thanks were also extended to SPAR for its ongoing support in helping create valuable opportunities and experiences for the young players of St Francis Soccer Club.
Read more: Meanwhile In St Francis – How To Survive Winter In SFB
Kouga Showcases Smart Technology at Eastern Cape ICT Summit
Kouga Local Municipality reinforced its commitment to smarter governance and improved service delivery when it hosted the Eastern Cape Municipal ICT Summit in Jeffreys Bay from 7 to 8 May 2026.
The summit brought together municipal leaders, ICT professionals and governance experts at Mentors Country Estate to explore how technology can strengthen local government and improve services for residents.
Municipal Leaders Focus on Digital Transformation
Held under the theme Connected, Intelligent, Secure and Citizen-Centric Municipalities, the summit attracted delegates from municipalities across the Eastern Cape.
Representatives from the Eastern Cape Department of Cooperative Governance and Traditional Affairs (COGTA), the State Information Technology Agency (SITA), Provincial Treasury and several ICT industry partners also attended.
Welcoming delegates, Kouga Deputy Municipal Manager Dawie de Jager said collaboration and innovation remain essential as municipalities adapt to growing service delivery demands and rapidly evolving technology.
Governance and Service Delivery Take Centre Stage
Eastern Cape COGTA Head of Department Dr Vuyo Mlokothi delivered the keynote address, highlighting the Local Government Professionalisation Framework and the importance of strengthening governance systems and institutional capacity.
Throughout the summit, delegates examined how ICT can improve governance, financial management and operational efficiency.
Discussions focused on:
- Cybersecurity resilience
- Integrated municipal systems
- ICT governance structures
- Alignment with the Municipal Standard Chart of Accounts (mSCOA)
- Protection against cyber threats, fraud and corruption
Kouga Recognised as a Digital Benchmark
A major highlight of the summit was Kouga Local Municipality’s web-based Collaborator system.
The platform supports electronic records management, correspondence tracking, workflow management, council agenda automation and policy management.
Kouga Showcases Smart Technology
Kouga also demonstrated how artificial intelligence is being used within the system to improve administrative efficiency and strengthen records management processes.
As a result, Kouga was selected as a benchmark municipality for its electronic document management system.
Challenges and Opportunities Identified
Delegates acknowledged several challenges facing municipalities across the province.
These include:
- Limited funding for ICT modernisation
- Fragmented digital systems
- Cybersecurity vulnerabilities
- Digital skills shortages
Participants agreed that strong ICT governance, integrated systems and sustained investment are essential to building efficient and citizen-focused municipalities.
Industry experts from organisations such as ISACA South Africa, Orion Cyber and Konecta shared insights into digital transformation, smart city development, governance frameworks and risk management.
Action Plan for Future Innovation
The second day of the summit focused on systems integration and compliance matters.
Topics included records management, free basic services administration, municipal human resources planning and e-recruitment systems.
The summit concluded with a programme of action aimed at strengthening ICT governance, improving institutional coordination and accelerating digital innovation across Eastern Cape municipalities.
Kouga Local Municipality reiterated its commitment to using technology to build smarter, more efficient and more responsive local government for residents.
Kouga Approves 2026/2027 Budget to Keep Services Flowing and Infrastructure Growing
Kouga Local Municipality has approved its 2026/2027 Medium-Term Revenue and Expenditure Framework (MTREF) Budget, placing infrastructure investment, financial sustainability and reliable service delivery at the centre of its plans for the next three years.
Council approved the budget during a virtual Ordinary Council Meeting on 28 May 2026 in accordance with Section 24 of the Municipal Finance Management Act (MFMA), following an extensive planning and public participation process aligned with the municipality’s Integrated Development Plan (IDP).
The approved budget aims to meet growing service delivery demands while maintaining financial stability in a challenging economic environment.
Focus on Infrastructure and Sustainability
Kouga Executive Mayor Hattingh Bornman said the municipality had adopted a responsible budget that balances current needs with future growth.
“This budget is about protecting services that communities rely on every day while continuing to invest where it matters most. Every allocation was carefully considered to ensure that we remain financially resilient while maintaining momentum in infrastructure upgrades, asset maintenance and service delivery,” he said.
The budget aligns with National Treasury MFMA guidelines and prioritises infrastructure investment, maintenance backlogs, operational efficiency and revenue growth.
Operating Revenue Increases to R1.554 Billion
Total operating revenue for the 2026/2027 financial year will increase by 6.28%, or R91.8 million, compared to the previous adjusted budget.
This brings total operating revenue, excluding capital grants, to R1.554 billion.
Rates and service charges are projected to increase from R1.031 billion in 2025/2026 to:
- R1.107 billion in 2026/2027
- R1.183 billion in 2027/2028
- R1.272 billion in 2028/2029
Main Revenue Sources
The municipality’s primary operating revenue streams for 2026/2027 are:
- Electricity: 33.39%
- Property rates: 21.03%
- Operating grants and subsidies: 14.4%
- Water: 8.13%
- Wastewater management: 5.05%
- Waste management: 3.64%
Bornman said the municipality worked hard to limit tariff increases wherever possible.
He noted that electricity bulk price increases are determined by NERSA, while bulk water increases are approved by the Nelson Mandela Bay Metropolitan Municipality.
Operating Expenditure Set at R1.621 Billion
Operating expenditure for 2026/2027 amounts to R1.621 billion, representing an increase of 4.88% compared to the previous adjusted budget.
Key Expenditure Drivers
Major expenditure categories include:
- Bulk electricity purchases: 29.88%
- Contracted services: 9.59%
- Depreciation: 6.69%
- Inventory consumed: 6.34%
- Debt impairment: 6.3%
- Operational costs: 6.27%
The operating budget will be funded mainly through service charges, which account for 50.22% of revenue, followed by property rates at 21.03% and grants and subsidies at 14.4%.
Tariff Adjustments From 1 July 2026
The following tariff increases will take effect from 1 July 2026:
- Property rates: 4.5%
- Water: 6.5%
- Sanitation: 5%
- Refuse removal: 5%
- Electricity: 9.01% average increase in income
- Environmental Management Fee: 5%
Capital Budget Totals R79.6 Million
The approved capital budget for 2026/2027 amounts to R79.618 million.
Most of the funding will come from government grants and subsidies due to limited internal funding availability.
Bornman said strategic capital investment remains essential for future growth.
“Although the capital budget environment remains constrained, we continue to prioritise projects that deliver meaningful impact and visible improvements for communities.”
Property Rates Relief Remains in Place
The municipality has retained several relief measures for qualifying residents.
These include:
- Exemptions up to R100 000 for qualifying Equitable Share recipients
- Relief for residential properties valued at up to R400 000
- Rebates of up to R200 000 for residents aged 60 and older with a gross household income below R15 000 per month
Expanded Support for Vulnerable Households
Kouga has increased its free basic services threshold from two state pensions to R7 500 per month.
Free basic electricity allocations have also increased from 50kWh to 75kWh.
Eligible households will continue to receive:
- 9 kilolitres of free water per month
- Free minimum sanitation services
- Weekly refuse removal
The total value of free basic services and indigent property rate rebates amounts to R75.294 million for the 2026/2027 financial year.
Budget Balances Current Needs and Future Growth
Bornman said the approved budget demonstrates Kouga’s commitment to balancing immediate service delivery requirements with long-term financial sustainability.
“Our responsibility is to respond to today’s challenges while planning responsibly for tomorrow. This budget enables us to continue delivering services, supporting vulnerable residents and building a municipality that is financially stable, resilient and ready for future opportunities.”
The full 2026/2027 MTREF Budget is available on the Kouga Local Municipality website under the Documents section.
Read more: Meanwhile In St Francis – How To Survive Winter In SFB
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