S&P Global Ratings downgraded South African local currency debt to “junk” territory on Friday, citing a further deterioration in the country’s economic outlook and public finances, sending the rand tumbling. Essentially the downgrade points to the risk investors...
If less than 10% of South Africans at 65 end up with sufficient capital to retire, then retirement is an illusion for the remaining for most of us. So what are the options? Depend on your familyThe problem is that families are under financial pressure to make ends...
On its own advice is just advice and probably not that effective. Let’s consider a retirement annuity, for example. In isolation the product has many features and benefits which provide many reasons to investIn one. A main advantage is the tax deductibility of...
In these tough times when households are under pressure to make ends meet, perhaps it time to have a closer look at loyalty programs to unlock some value to help get through. The more successful loyalty programs help you to change towards lifestyle behaviours which...
Short term solution in the current environment As our economy is technically in a recession investment options are very challenging. A great place to invest in the short term is the money market. Accounts can be opened at all financial institutions such as your...
Don’t forget dependents ...
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...