New draft legislation aims to give SARS the power to put you in jail if you make a mistake with your tax return. The draft bill seeks to remove the concept of “intent” which in criminal law needs to be proven that you wilfully broke the law. Removing this from...
Filing Season for 2020 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...
DebtBusters quarterly analysis for Q2 2020 clearly shows how consumers’ exposure to debt has significantly deteriorated over lock down with higher-income earners in particular under debt pressure. This is borne out by the increase in unsecured debt, which on average...
A linked investment service provider (LISP) is probably one of the lessor understood investment vehicles. Most investment houses have them and have been around for a while. What are they?They are investment platforms which offer access to a universe of investment...
The South African Reserve Bank (SARB) cut interest rates by another ,25% on Thursday which is brings the total reduction in interest to 3% for 2020. The repo rate which is applied to banks is now 3,5% and prime lending rate applied to consumers is now 7%. The lowest...
In depressed economy returns on various investments are weak if not negative. The South African Stock Market year to date is -2,3% with a total return of 0,6%. Fees become more noticeable when returns are low as they appear to reduce your returns leaving less for...
A retirement annuity is an investment for your long term financial future. It is the vehicle which will provide an income for you once you retire. South Africans do not have a safety net to fall into. You are on your own despite the number of years you have paid your...
Warren Edward Buffett is an American investor, business tycoon, and philanthropist, who is the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of US$88.9 billion as of December 2019, making...
This has been a strategy applied by investors in the stock market over the years. It is a classic market adage which is also known as the Halloween Theory as the time to re-enter the market is after Halloween. (End of October). The saying dates back to old...
Changes were gazetted on the 1st June governing conditions regulating living annuities. This is an attempt to help retirees more access to their funds if they have been affected financially by the lockdown through COVID 19. What is a living annuity?When you retire you...
After more than 60 days in lockdown we have had a long time to think about many things, including money. We’ve seen how important it is to have enough to get by. Those who lost some or all of their income had to learn how to stretch their provisions to meet with their...
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, the COVID...
RSA Retail Bonds are an option for those seeking that little extra interest from their strained savings. Effectively, you are lending the government money on a short term basis of 2, 3 and 5 year options where the interest is fixed and you are guaranteed your money...
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...
If less than 10% of South Africans at 65 end up with sufficient capital to retire, then retirement is an illusion for the remaining for most of us. So what are the options? Depend on your familyThe problem is that families are under financial pressure to make ends...
Financial Independence is achieved when your investments reach a point where they can generate sufficient income for you to live off for the rest of your life. It puts you in a space where you don’t need to earn an income any more. It empowers to financial support...
What are they? You get to invest for as little as a few hundred rand into a large investment pool which is managed by a fund manager according to a specific objective. The investment is priced in units (hence the name) based on the value of the fund. There are around...
The lock down will give us plenty of time to explore the internet for useful websites which will give you some practical financial insights. Here are some sites that I have compiled to help you while away the hours. Investment Planning ...
Government has been on point dealing with the Corona Virus pandemic. They have rallied effectively mobilising South Africans to prepare for the onslaught of this crisis. Social distancing is the plan. Relief on the way ...
Work off your debt The more interest you pay the less you have to save and the more opportunity you lose to compounding your wealth into the future. Money lenders make money out of debt through interest and time.The longer interest is paid over time the more the...