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...
Inflation discounts the value of your money over time.The official inflation rate or CPI is an average rate of price movements based on a set weighted basket of goods and services over time.The average rate points to how your value of you money is discounting over a...
What is the best investment for you? Is there such a thing as best? How do you go about choosing one?Best is only found in the rear view mirror. Therefore best is only known when you’ve passed it and you can look behind. So best cannot be predicted into the future....
The FAIS Act was enacted on the 30th September 2004 and from this date onwards all advice is regulated to protect the consumer and the advisor for that matter. Protection for the consumer Advice must be qualified and appropriate.Full disclosure and transparency must...
Assurance covers you for just in case, providing you with capital to cover the financial loss you may experience as a result of the life changing event.It’s expensive if nothing happens, but is probably the best financial decision that you make should something like a...
In a recent interview with National Treasury, the concern was that most of us are not saving our retirement funds when we change jobs. The discussion pointed to fees and the impact the costs have on returns. Fees were singled out as the reason why people are not...
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 of winning a 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 bankruptcy. How devastating...