The most powerful tool in the financial world is that of compounding. It is a phenomenon which even amazed Albert Einstein who was said to call it the 8th Wonder of the World. So what is it all about?Essentially compounding is reinvesting the returns you make on an...
Endowments are policy contracts which commit you to a minimum investment period of 5 years after which the proceeds are tax free. They basically provide a so called “wrapper” around various funds of choice which may be invested in various assets, such as, equities,...
Gold has always been a storage of wealth. The lustre of gold has attracted investors for centuries. Over the best part of the last decade, however, it seems to have lost its shine. Peaking at levels just under $1800 and ounce a few years ago in 2012 to around $1100 of...
As we are still on the precipice of a downgrade relying on one ratings agency – Moody’s to keep us from falling into ‘Junk’ status we should be we’ll aware of the possible outcomes of losing our investment status. This situation is in the hands of our leaders and we...
The investment horizon is never really certain. However, the current global economic climate is definitely more uncertain than before. Economies throughout the world are battling to create employment and dig themselves out of the debt. Doubt, fear and worry loom. Yet...
Our Minister of Finance announced in the budget proposals this week an increase in withholding tax on dividends from 15% to 20% which further erodes the returns you receive from being invested in shares. This gives you even more reason to be invested in a tax free...
The road to financial independence is a journey. You know you have arrived when you find the stage in your life where you work, live and do the things you really want to because you are not reliant on being on a payroll. Imagine the freedom to do what you want to...
You work hard for your money so use it wisely. Whether you earn R10 000 or a R100 000 per month the basic objective in your financial planning is to be able to maintain the standard of living that you have accustomed yourself to no matter what life changing event...
Institutions make their money by lending money to you at a rate over the time. Simply, the long you take to pay the more it costs you and the banks thrive on it. Debt is so easy to get into and so very difficult to get out of. Prevention is always better than...
The risk of losing everything is very possible with the current heavy rains all over the country. There have been reports of severe flooding which has destroyed property and taken lives leaving families devastated and financially ruined. Insurance is the easiest way...
When deciding to invest on your own you must be prepared to do your homework. Here are some investments which you can consider investing directly into. Money Market Account ...
Most of us have an idea that we will retire at 65 and live happily ever after planning golf a few times a week and traveling around the world and back again. Nothing further from the truth when you take a look at the stats of South Africans at 65 and their degree of...
A great place to save in the short term is your home access bond. With home loans around 10% by saving extra in your bond you effectively get this rate as a return on your money.Why? Well because the bank calculates the interest owed from the average balance in your...
When you retire one day you have two basic options when choosing a pension. You either hand over your retirement fund to a product provider and let them provide a pension for you for the rest of your life or you can choose to manage your own fund through your...
Financial planning is all about making provisions for expected and unexpected events into the future. The nearest expected event on our calendar is the festive season which is just around the corner.If you haven’t been saving for this costly event during the year then...
The management of the emolument attachment order known as a garnishee order has been changed through a judgement from the Constitutional Court. Essentially the decision whether a salary can be attached by a garnishee order can no longer be made by the clerk of the...
Here are three areas women should focus on to further their investment prowess: Women are more cautiousWomen tend to be more risk averse than men when it comes to investing. Women tend to be cautious and hold their investments longer than men who look for higher...
Insure the more expensive vehicle in your name instead of your spouse as you are more likely to get better rates on the car. Many households have two cars and dad generally has the expensive 4×4 and mom the runner. Insurance companies recognise that women drivers are...
Here are 4 important financial aspects that women should be aware of when constructing a financial plan. DeathIf the worst happened to Mom then how does this affect the family? Who looks after the children and the home. The cost of finding a child minder and keeper of...
There are 3 factors which determine value of an investment.Time investedAmount investedReturn received Women are on the back foot with all three. TimeWomen live longerIn the 1800’s women lived to age 33 and men to 31.Today women live to 83 years and men to 79 years....