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...
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,...
The one big lesson we can learn from the Budget The 2015 budget proposal confirmed that we as a nation are between a rock and a hard place. It was clear that the minister needed to find every smidgeon of revenue (the rock) and try to curb expenditure (the hard place)...
Income protection policies are essential in a sound financial plan. They cover you in the event of a disability by providing a monthly income when you cannot work. They are offered by most assurers as free standing policies and through pension and provident funds as...
Before the end of the tax year (February) there is an opportunity to look at your retirement provisions and take advantage of the tax break that is available by topping up your retirement annuity. Currently, you are allowed to deduct the amounts paid to a retirement...
The misnomer commonly perceived by the “ordinary” person is that financial planning is just for the wealthy. Far from it! You see, a successful financial plan does not set out to make you rich, especially in a short space of time. Rather, it sets out a framework which...
Your credit report is available to you on-line and for free. Just a few fields to fill in with one or two security checks and your report arrives in your mailboxrating your credit worthiness. The report verifies your ID with the Department of Home AffairsDetects if...
The World Economic Forum holds is an annual event where the “Who’s Who” of the Political and Business elites of the Globe descend on a small city in the Alps called Davos. It is an opportunity to meet rich and famous key decision makers and exchange ideas and business...
The recent drop in the oil price creates opportunity for all South Africans and we should take full advantage whilst the price of petrol is low.We as a country import 95% of oil needs and therefore are totally dependent on exchange rate as oil is bought in Dollars...
Amongst the many questions asked on the Morning Breakfast Show during the year these were the most pressing. The common thread was that people were struggling to make ends meet and needed advice on how to manage their money better. Are money market accounts safe...
If you are lucky enough to get a year-end bonus you should take stock of your finances and look for opportunities where you can best allocate some of the cash. Save first then spend the rest It’s year-end and of course you have to splurge a bit. However, save a...
We are victims being preyed upon by criminals who want our money. They are creating ways and means to get information about us to enable them to access our bank accounts and credit cards. Scamming is rife and becoming more and more sophisticated as the various...
Fees as a percentage of returns become more noticeable the lower the returns Expressed as a reduction on yield. Which means that if you earn 10% and you total costs are 2,5% you actually earn 7,5%.This is the actual return which compounds over the duration of your...
Looking through the rear view mirror at the stella performance of the world stock markets over the past 4 years as they have soared into the stratosphere, one stands in bewilderment as to how they got anywhere near these heights. Furthermore, one wonders how much...