A trust is a legal entity which controls assets on behalf its beneficiaries. It is managed by trustees in terms of a trust deed which details how the assets should be distributed. It helps some but not everyone. Here are 3 reasons why a trust is not that beneficial...
What is inflation? ...
When you have finally succumbed to the fact that you are over your head in debt and cannot cope any further. Here is a way forward which will help to soften the blow. Step one – Open the envelope ...
Unsecured lending seems to be a quick and easy way out of a financial crisis but it’s probably a spade which digs a bigger hole for you. The old saying, “If you find yourself in a hole, the first thing you should do is stop digging”, is so applicable to debt. My wife...
South Africa is being reviewed this week by Moody’s rating agency which has a negative outlook on our economy. The probable downgrade to BAA3 will bring it inline with Standard and Poors and Fitch which have already downgraded us to their equivalent BBB-. The next...
Dying without a will has some serious implications for the loved ones that you leave behind. Especially if they are minors under the age of 18.. Many South Africans do not have a will and this means that their estates will fall under the Interstate Succession Act. The...
The budget proposals for 2016 are the most difficult to face in decades. South Africa is between the proverbial rock and hard place. High unemployment and low growth. Our economy is in stagflation and this presents very little room to manoeuvre. Our Minister of...
The global markets are in turmoil. Growth is slow, emerging markets face a currency crisis, stock markets are trading at jittery levels. Is this the time to buy or sell? Mr Miyagi, the wise old man in the movie, “The Karate Kid”, started Daniel out on his training by...
Generally speaking, when you make a financial decision the outcome is only realised some time in the future.Your advice should not be taken in isolation and as a once off decision. You need to keep in touch with the advice given by reviewing frequently to ensure it is...
A huge windfall such as an inheritance or winning the lotto or power ball is a lot more difficult to handle than you might think.Statistics point to over 70% of people who have won large lotteries having spent everything within seven years and some even filing for...
Another rate hike of 50 basis points and the probability of more on the way call for us to become more savvy with our money. We need to find ways to use money more efficiently and then divert the savings towards paying off debt sooner than later. There are two debt...
From the 1st March 2016 the options for retirement have changed. Legislation comes into play which aims to standardise the various types of retirement funds which are available to us. Namely, provident, funds, pension funds and retirement annuities. The changes will...
Debt is so easy to get into and so very difficult to get out of. Prevention is always better than cure but the reality is that we get enticed into debt over time and soon find ourselves in it way too deep. The cost of debt climbs quickly and robs us of the potential...
The beginning of a new year is a great time to update your personal balance sheet.The exercise is invaluable in your personal financial planning as it creates a snapshot of your actual worth in relation to what you own and what you owe. Your so called “Net Worth”. OWN...
Damage control for the January Blues….. It’s that time of year when we have turned the corner into the new year and need to get our finances back in order as soon as possible. Here are 3 “Don’ts” which will help you to get you off to a quick and effective...
What a year it has been! It will certainly be remembered for its uncertainty. It was a year where asset and currency swings were huge exposing the anxiety and risk of the markets.Paging through various investment data for the year the stats reveal the following...
At the risk of sounding prophetic and sounding like the Grinch, next year is likely to be tougher than 2015. This is the last week before Christmas and perhaps there is still a chance to take control of that urge to splurge. Here are some things to consider: Put on...
The traditional approach to sound financial planning is to buy a property as soon as you can instead of renting. The rationale is that you will be better off paying for your property as soon as you can with the rent you are paying to your landlord. However, there are...
Last Sunday on the Weekend Breakfast Show (702/CapeTalk), Sam Cowen cornered me to please give her some good news against the backdrop our ailing economy. I struggled for an answer and left Sam, Africa and our Sunday listeners hanging. I set out this week digging deep...
The recent increase interest rates by the reserve bank of 25 basis points leaves us with the clear direction of where the cycle is heading (1,5% over 2 years). What we are reminded of by this hike is that asset classes move in cycles and not in straight lines. We had...