The Purpose Of This Calculator

About This Investment Calculator

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This powerful calculator helps you compare the long-term after-tax and after-fee outcomes of investing in listed shares versus unlisted shares, with the ability to easily split your investment between the two options.

 

Key Features:

• Split Your Investment Dynamically:

You can allocate any percentage to listed shares and unlisted shares — allowing flexible simulations like 30/70, 50/50, 80/20, or 100% into either side.

This feature empowers you to confidently follow Everest’s strategy of asking clients for just a portion of their funds rather than requesting everything.

 

• Tax Comparison:

Compare how listed shares (taxed at income tax rates with advisor fees) perform against unlisted shares (taxed at 20% dividends tax with a 10% bonus after 5 years).

 

• Full 5-Year Projection:

See the net income, total fees paid, tax impact, and total capital growth side-by-side over 5 years.

 

• Visual Graph:

A professional bar graph instantly shows clients how their investments grow under each option.

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 •Investments used

The two investments I used in the calculator, plus a short description for each:

 

1. Listed Shares Investment

 

What it is:

• Investment in publicly listed companies through the stock market (like the JSE in South Africa).

• Growth and income (dividends) are taxed according to the South African income tax tables (progressive tax brackets).

• Advisor fees are typically deducted annually from the investment.

• Subject to market volatility — returns can fluctuate with stock market movements.

 

Short Description:

 

An investment in publicly traded shares where returns are taxed at your income tax rate, and annual advisor fees apply. Performance is linked to market conditions and can vary over time.

 

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2. Unlisted Shares Investment (Everest Type Product)

 

What it is:

• Investment in private unlisted shares — not traded on a stock exchange.

• Growth is delivered mainly through dividends, taxed at a flat 20% dividends tax (lower than most people’s income tax rate).

• No annual advisor fee deducted from the return (or already built into the structure).

• After 5 years, an additional 10% bonus is added to the original invested capital, increasing the total return.

• Typically offers fixed or targeted returns, lower volatility, and higher tax efficiency.

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3. Growth Rate

I used 12,8% for both