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...
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...