One of the more complex financial products is a life assurance policy. You need to understand the definitions of the benefits taken and the conditions under which they will be paid out. You also need to be aware of the various exclusions that are applied. The...
Taking the option to go it alone with your investments takes some work. The financial universe is huge and navigating your way through the options takes a lot of research and study before making an appropriate choice. You could choose investments that are actively...
If you expect a higher rate of return on your savings then you need to take on more risk. Generally speaking, risk is the potential of your investment to fluctuate in value over a period in time. It is important to realise how risky your investments are relative to...
You work hard for your money and you know that you should be saving more of it. Developing a determined attitude towards savings is the first step which will get you on the road to financial freedom. So how do you start? Here are some essential questions that you...
Early to bed and early to rise makes a man healthy, wealthy and wise. A proverb which provides a strategy for the – The perfect retirement plan You probably will have to work for the rest of your healthy life. The problem of living too long is increasing...
Filing Season for 2015 has opened so its time to prepare that tax return again. For the average salary earner in South Africa, there isn’t much left to deduct on your return. Car allowance and retirement annuities are just about all that is left to consider. Travel...
South African change jobs on average 7 times in the working phase of their lives and 95 percent end up without sufficient funds when they retire. The main reason is that they cash in their pension funds instead of preserving them every time they move jobs. Every time...
An invalid will can lead to unnecessary delays and costs when it comes to winding up your estate. The problem worsens as frustrated beneficiaries and angry members of the family have to deal with the lengthy process of dying “Intestate.” That is without a valid...
The rising costs in tariffs, rates and taxes are a reality which households will have to face head on as there are no magic wands to wave to make them go away. We will have to get down to understanding theses expenses and how much they eat into our monthly incomes....
The recent World Economic Forum on Africa held in Cape Town has an important place for all countries on the continent. It aims to synergise the efforts of Africans to improve their economies. So how do we as South Africans benefit from this illustrious event? It...
Recent stats from the UK show that it costs the average British household GB 7 026 per year to raise a child from birth to 5 years old. That’s around R130 000 per annum. Research on South African middle income households show that it costs around R90 000 a year to...
Future value of your investment. If you want to know how quickly or slowly for that matter your money will double in value then simply divide the expected rate of return into 72. The result is the number of years it will take. For example: You invest R10 000 at an...
Mother’s day is all about being spoilt by the children and some mom’s will be so overwhelmed by the love and attention. Just in case you want to reciprocate, Mom’s… beware there are limitations. Be careful Mom’s not to give away your children’s inheritance too soon,...
The inflation rate is a measurement of the average cost of items which are closely monitored by the department of Stats. The prices movements of around 400 items are measured to establish the annualised inflation rate. The rate is watched closely by the Reserve Bank...
At the recent passing of a very wealthy client I spent time reflecting on of what money was all about. He had a very sizeable estate which was left to his two children as he had just lost his wife to a terrible disease shortly before he died. All he had at the end of...
Financial Independence is achieved when your investments reach a point where they can generate sufficient income for you to live off. It puts you in a space where you don’t need to earn an income any more. It empowers to do the things you really want to. Many of us...
When deciding upon an investment the main aspects to consider are: Risk – the possibility of losing capital. Return – the yield of the investment over time. This could be interest from cash deposits or bonds, rental income from property or dividends from...
Investing is a deliberate approach to making the most of your money over a specific period of time.Your investments should be balanced against your lifestyle needs – both present and future. For example, if you have a life changing event in the short term such as a...
There is value The recent tax free savings account (TFSA) presents value for everyone by escaping the taxes which are levied on interest, rental income and capital gains tax. Depending on the funds that you invest in, this could reduce the return by a few percentage...
Reason 1 – Tax effective for high tax payersFollowing last weeks topic on why you should not have an endowment it stands to reason that you will benefit from investing in an endowment if your tax rate is higher than 30%. The latest budget proposals have raised the top...