The recently published Morningstar Global Fund Investor Experience 2015 study, which analyses 25 countries that offer investment funds, highlights high fees, poor disclosure levels and advisers’ lack of fiduciary duty as some of the key issues...
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Tax-free savings accounts are not ideal for an education fund
Using your child’s tax-free savings account is not necessarily the best vehicle for their education fund. Since the launch of the tax-free savings accounts (TFSAs) there have been suggestions that this would be an ideal way to save for your child’s...
What to consider when investing internationally
By Tracy Muller, Head: Fiduciary at Nedbank Private Wealth Individuals are often driven to invest internationally for the wrong reasons, as emotions override financial acumen. They often only consider investing internationally when the rand starts...
The cost of bad habits
People often argue that the reason they don’t have any savings, or why they cannot pay off their debts, is because they simply don’t have enough money. Yet little do we realise how much our bad habits are really costing us. The real cost of smoking...
Retirement annuity tax loophole to be closed
By Tanya Lochner, fiduciary specialist at Glacier by Sanlam In the foreseeable future retirement annuities will no longer fall outside of your estate for estate duty purposes, so bear that in mind when you do your estate planning. Since 2007, a...
SA obsession with home ownership needs to be “dumbed down” a little
By John Loos, Household and Property Sector Strategist at First National Bank The 5% FNB House Price Index inflation rate suggests no apparent need for “first-time buyer panic” at present. But there is a need for first-time buyer caution, and...
Bank smart, pay less
You’ve finally graduated and landed yourself a job, and you’re loving the flexibility that comes with earning your own money. But before you know it, the money has run out and you’ve been hit with a whopping amount of bank fees. We took a look at...
Interest rate increase could make consumers more vulnerable
By Sanisha Packirisamy, economist at Momentum Asset Management. It is clear that the South African Reserve Bank (SARB) remains aware of the potential negative local effect of a rise in US rates should the US decide to hike rates this year. In the...
Are you insured against power surge damages?
If you haven’t specifically taken out cover for power surges you will receive a nasty shock when your electronic goods are fried during load shedding, as one of my readers discovered. “I have faced a huge financial setback with my gate motor, alarm...
Interpreting REITs
Abrie Joubert, Client Services Specialist at Glacier by Sanlam, looks at the finer details of a real estate investment trust (REIT) and how it affects your finances. What is a REIT? You may have noticed an entry on your investment statements and...
Previous Articles
The impact of debt on our retirement
Debt is the main reason people withdraw their retirement benefits when changing jobs, according to key findings of the 2015 Sanlam Benchmark Survey, a comprehensive annual review of South Africa’s retirement industry. After interviewing thousands of retirement fund...
What the government is doing really well in the power sector
By Rob Spanjaard, Director: Rezco Asset Management. In the fog of confusion caused by the chaos at Eskom, we lose sight of what the government has done really well in the area of power generation. Perhaps this could provide a model to get out of the morass that we are...
Is South Africa heading towards a tax revolt?
Taxpayers have been pushed too far. South Africans are becoming more belligerent about tax amid growing concerns at the apparent waste of taxpayers’ contributions through highly controversial government spending. Some commentators have speculated that South African...
Hundreds of South Africans fall victim to loan scam
It was only when Patricia received a call from Wonga’s head of communications that she realised she had been the unwitting victim of a phising scam that has so far conned over 200 people into parting with their money. Two weeks ago Patricia received an SMS from – what...
The impact fees have on your living annuity returns
For most people, cost is a primary consideration in almost every purchase decision. Except, it seems, when it comes to critical financial decisions, such as buying a savings or investment product. Many South African retirement investors therefore also overlook the...
Aggressive investment needed for sufficient retirement outcomes
What levels of real growth are needed for a comfortable retirement outcome? Are retirement funds investing aggressively enough to achieve this? Barend Ritter, Portfolio Manager at Sanlam Investments, takes a stand and makes a case for equities. In order to secure a...
When a car becomes a debt trap
If you can no longer afford your car, it's time to take action. Here are your options. Lucky wrote to me to find out whether or not he should sell his BMW for a loss as the cost of the car is having serious consequences on his other financial commitments. Lucky’s...
How best to structure the sale of a business
Chris Norris, an Audit and Assurance Partner at BDO South Africa, provides some insight into the finer financial realities of selling a business or company. Quite often, the net proceeds receivable by the owner from the sale of a business are significantly less than...
Is life insurance really for life?
The inefficient structure of existing life insurance products impact value and sustainability of cover for clients. BrightRock’s needs-matched life insurance addresses these shortcomings by pricing cover correctly for the term and trajectory required. Since its launch...
Finding hidden gems in tough times
Samantha Pauwels, portfolio manager at Cannon Asset Managers, gives investors pointers to finding hidden market gems. It seems like just last month that the oil price slipped to fresh lows and the expected benefit was widely discussed in local news. Many analysts were...