Question 1

What is AI-enabled financial advice?

Accepted Answer

AI-enabled financial advice means a human financial advisor uses artificial intelligence tools to deliver faster, more accurate, and more personalized recommendations. At Bauer Bersella Advisors, our team leads all client relationships and strategic decisions, but AI agents assist with portfolio analysis, risk modeling, and research—so you get advice in hours, not weeks, with institutional-grade rigor. This is different from robo-advisors (fully automated, no human) and traditional advisors (manual processes). It's human-led advice, amplified by AI technology.

Question 2

Is Bauer Bersella Advisors a robo-advisor?

Accepted Answer

No. We're a human-led advisory firm that uses AI as a tool, not a replacement. You work directly with our team—real people who understand your goals, tax situation, and life circumstances. AI helps us analyze your portfolio faster and model thousands of scenarios, but every recommendation is reviewed and delivered by a human fiduciary. If you want fully automated investing, robo-advisors like 10X Investments might suit you. If you want personal financial advice supercharged by technology, that's us.

Question 3

What's the difference between AI-enabled and AI-first financial advice?

Accepted Answer

AI-enabled means humans lead, AI assists. AI-first means AI is the primary service delivery mechanism. At Bersella, our system architecture is built on AI (AI-native infrastructure), but our brand and service model is human-led. You get a human advisor making decisions with AI doing the heavy lifting on data analysis, compliance, and research. Think of it as a surgeon using robotic assistance—the human is still performing the surgery. We position as AI-enabled because clients want accountability from a person, not an algorithm.

Question 4

How is Bauer Bersella Advisors different from traditional financial advisors?

Accepted Answer

Speed: We deliver portfolio reviews faster because AI handles data aggregation and scenario analysis. Transparency: Our fees are published online with no hidden costs. Technology: We use AI agents for research, compliance checks, and risk modeling—you get institutional-level analysis at boutique pricing. No conflicts: We're independent (not owned by a bank or insurer), so we recommend what's best for you, not what pays us commissions. Accessibility: We focus on making sophisticated advisory services accessible to professionals and entrepreneurs, not just ultra-high-net-worth clients.

Question 5

Who is Luca Bersella?

Accepted Answer

Luca Bersella is the CEO of Bauer Bersella Advisors. He spent 5 years as a Solutions Architect at a UK fintech before taking over his family's 35-year-old wealth management firm (Bauer Reuvers & Associates) in Cape Town. His mission: rebuild traditional financial advisory with AI as the operating system—so clients get faster, smarter, more transparent advice. He's an evidence-based investor and a full-stack builder (he codes, designs, and runs the business). He's a Chartered Accountant CA(SA) and believes in building publicly—sharing the journey of transforming a legacy firm into an AI-enabled advisory practice.

Question 6

What are Bauer Bersella Advisors' fees?

Accepted Answer

We charge a transparent annual advisory fee based on assets under management, typically around 0.5% per year. We may charge a one-time fee for new investments depending on circumstances. No hidden costs, no commissions from product providers. For new clients, we offer a free initial consultation. Because AI handles routine analysis, we can charge less than traditional full-service advisors while giving you more attention. We're constantly working to reduce your overall costs by negotiating better rates with providers and optimising your tax situation.

Question 7

Is Bauer Bersella Advisors FSCA regulated?

Accepted Answer

Yes. We operate under FSP license 539 issued by the Financial Sector Conduct Authority (FSCA) in South Africa. This means we're bound by fiduciary duty under the FAIS Act—we must act in your best interest, disclose all fees, and maintain professional indemnity insurance. AI is a tool we use internally; all advice is subject to human review and regulatory compliance. We're financial advisors first, technologists second.

Question 8

What is a financial advisor and what do they do?

Accepted Answer

A financial advisor is a professional who provides personalised financial guidance to help you achieve your financial goals. At Bauer Bersella Advisors, we provide comprehensive financial planning including retirement planning, investment management, tax optimization, estate planning, and risk management. We're an authorised Financial Services Provider (FSP 539) regulated by the Financial Sector Conduct Authority.

Question 9

How do I choose a financial advisor in South Africa?

Accepted Answer

Look for advisors who are independently licensed (FSP registered), transparent about fees, and have a fiduciary duty to act in your best interests. Check their FAIS disclosure, ask about their experience with clients similar to you, and ensure they explain things in plain English. Independence from banks and product providers is crucial—it means they recommend what's best for you, not what earns them the most commission.

Question 10

What is the difference between a financial planner and a financial advisor?

Accepted Answer

In South Africa, the terms are often used interchangeably, but financial planners typically focus on comprehensive life planning (retirement, estate, tax), while financial advisors may focus more on investment management. At Bauer Reuvers and Associates, we provide both services as part of integrated financial advice—we look at your complete financial picture to create a holistic strategy.

Question 11

Do I need a financial advisor if I have a small portfolio?

Accepted Answer

Financial advice is valuable at any stage. While we typically work with clients who have R1 million+ in investable assets, good financial advice early can help you build wealth more efficiently. Even with a smaller portfolio, proper tax planning, retirement contributions, and avoiding costly mistakes can significantly impact your long-term financial success.

Question 12

How often should I meet with my financial advisor?

Accepted Answer

We recommend comprehensive reviews at least twice a year, with quarterly check-ins for significant portfolio changes or life events. However, you can reach us anytime between scheduled meetings. Major life events (marriage, divorce, inheritance, retirement, starting a business) should trigger an immediate review of your financial plan.

Question 13

What is the 4% rule for retirement?

Accepted Answer

The 4% rule suggests you can withdraw 4% of your retirement savings annually without running out of money. However, this American rule doesn't account for South African inflation rates, tax structures, or local market conditions. We create personalised withdrawal strategies based on your actual expenses, inflation expectations, and investment returns rather than relying on generic rules.

Question 14

How much should I save for retirement each month?

Accepted Answer

Most South Africans should save 15-20% of their gross income for retirement, but this varies significantly based on when you start, your current age, desired retirement lifestyle, and existing savings. Starting in your 20s, 15% may suffice; starting in your 40s may require 25-30%. Our retirement calculator can give you a personalised savings target based on your specific situation.

Question 15

What is offshore investing and should I do it?

Accepted Answer

Offshore investing means holding investments in foreign currencies and markets outside South Africa. It provides currency diversification, access to global companies, and protection against rand weakness. South Africans can invest up to R1 million offshore annually (plus R10 million with tax clearance). We typically recommend 30-40% offshore exposure for most clients as part of a balanced portfolio.

Question 16

What is a living annuity vs a life annuity?

Accepted Answer

A living annuity lets you control your investments and withdrawal rate in retirement, with flexibility to adjust and leave funds to heirs. A life annuity guarantees income for life but offers no flexibility or inheritance. Most of our clients choose living annuities for control and growth potential, but life annuities can suit those wanting guaranteed income with no investment decisions.

Question 17

How does tax-free savings work in South Africa?

Accepted Answer

Tax-free savings accounts (TFSA) allow you to invest up to R36,000 per year (R500,000 lifetime limit) with no tax on interest, dividends, or capital gains. This is in addition to retirement annuities. TFSAs are excellent for medium-term goals (5-15 years) or as part of retirement planning. We help clients maximise both retirement annuities and TFSAs as part of a complete tax-optimisation strategy.

Question 18

What is estate planning and why is it important?

Accepted Answer

Estate planning ensures your assets pass to your chosen beneficiaries efficiently and cost-effectively when you die. It includes wills, trusts, beneficiary nominations, life insurance, and estate duty planning. Without proper planning, your estate can face 20%+ estate duty, executor fees of 3-4%, and lengthy delays. We help structure estates to minimise taxes and ensure your family is protected.

Question 19

How does AI-enabled financial advice work?

Accepted Answer

AI-enabled financial advice combines human expertise with artificial intelligence tools. At Bauer Reuvers and Associates, our advisors use AI to analyse large datasets, identify tax optimisation opportunities, and create more accurate financial projections—but all recommendations are made by qualified human advisors. This means you get faster, more thorough analysis while maintaining the personal relationship and accountability of traditional financial advice.

Question 20

What returns can I expect from my investments?

Accepted Answer

Historically, balanced portfolios in South Africa have returned 10-12% per year over the long term (20+ years), though this includes significant volatility. Conservative portfolios may return 7-9%, while aggressive portfolios might achieve 12-15% but with higher risk. Past performance doesn't guarantee future results. We focus on building diversified portfolios matched to your risk tolerance and time horizon rather than chasing returns.

Question 21

When should I start financial planning?

Accepted Answer

The best time to start is now, regardless of your age or wealth. Starting in your 20s gives you the power of compound growth. Starting in your 40s-50s means making smart catch-up strategies crucial. Even in your 60s, proper planning can optimise retirement income and estate transfer. The cost of not planning—missed tax benefits, poor investment choices, inadequate insurance—far exceeds the cost of good advice.

Question 22

What is FAIS disclosure and why does it matter?

Accepted Answer

FAIS (Financial Advisory and Intermediary Services Act) disclosure is a legal document explaining how your advisor is compensated, what products they can sell, and any conflicts of interest. It's crucial because it reveals whether your advisor is independent or tied to specific product providers. As an independent FSP, we're required to act in your best interests and disclose all fees transparently—this protects you from biased advice.

Question 23

How much money do I need to retire comfortably in South Africa?

Accepted Answer

This is our most asked question. While everyone's needs differ, most of our clients need between R10-25 million to maintain their lifestyle in retirement. The exact amount depends on your spending, health, and goals. We have a free 2-minute calculator that gives you a personalised answer.

Question 24

Can I leave Bauer Bersella Advisors if I'm not happy?

Accepted Answer

Absolutely. We're so confident in our service that we offer a unique guarantee: if you're not satisfied, we'll refund all fees from the previous 12 months. There are no lock-in contracts or notice periods. Your investments are always in your name, making transfers seamless if you decide we're not the right fit.

Question 25

What makes an independent financial advisor different from a bank?

Accepted Answer

Unlike banks, we don't have products to sell you. We're truly independent, which means we can recommend the best solutions from any provider. Our only agenda is your financial success. We work with over 30 institutions to find the best options for you, not what earns us the most commission.

Question 26

How much does financial advice cost?

Accepted Answer

Our fees are completely transparent and are typically around 0.5% per year of assets under management. We may charge a one-time fee for new investments depending on circumstances. We're constantly working to reduce your overall costs by negotiating better rates with providers and optimising your tax situation.

Question 27

What happens to my investments if I want to emigrate?

Accepted Answer

This is a common concern for South African investors. We help clients navigate the complex emigration process, including tax clearance, foreign investment allowances, and transferring wealth efficiently. We'll ensure you understand all implications and help structure your investments for your new country while complying with SA regulations.

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Complete Guide to Financial Advice

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