Morake writes: A friend of mine’s home loan is nearly paid off and she wants to know if she should close the home loan or keep it open. What is the procedure to closing a mortgage? Do you have to pay transfer duties to get the title deed? Maya...
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When would you trust your child with a lump sum?
If a member of a retirement fund passes away leaving minor children, the trustees of the fund are required to determine whether or not to pay out the child’s portion of the fund directly to the surviving parent or guardian, or whether to transfer...
Beware of pyramid scheme MMM
I have received many reader queries about MMM and whether or not it is a safe investment. For example, Seraki writes: “My friends and colleagues are making a lot of money every month through this MMM, and I am tempted to join. I know that there are...
Beware of telephonic agreements
Max writes: I was called by a company who promised to send me a discount card that I can use for airtime, electricity and groceries. I asked for a written offer so that I could check their address and contact details. Soon afterwards an amount of...
Remote jamming could jam your insurance claim
You’re at your local shopping centre, the kids are screaming and you’re rushing to get your shopping done as quickly as possible so you hurriedly press the remote button to lock your car and run into the centre. But have you double-checked that...
Is now a good time to buy a house?
Rebecca writes: I am a 36-year-old professional and single mother of two. I had planned that this would be the year that I would buy my own modest home. I have been listening to financial experts on TV saying that first-time home buyers must delay...
To Trust or not to Trust
Trusts may be one way to protect your assets from creditors but it is not something you should enter into lightly as the negatives could outweigh the benefits of protection. Mpho wrote to me to argue the point that a trust would have been able to...
Should I pay my mortgage a few days early?
Ridwan asks: I have been told that by splitting my monthly installment into two payments over the month, for example the 15th and the 30th of the month, I can save on interest as interest is calculated daily so the payment on the 15th reduces the...
How your money values are undermining your goals
Someone recently related a story to me about a member of his community who had fallen on hard times and had lost everything. He had gone from being an ultra-wealthy businessman to struggling to make ends meet. He had come to his friend for some...
How to cut down on your data usage
I’m a lot better at financial management than managing my cellphone data, but the reality is that data is money and for most of us, our smartphones are like a dripping tap, using data we are not even aware of. I received some useful tips on...
Previous Articles
What information can banks buy from a credit bureau?
Andy writes: What information are banks able to buy from credit bureaus about my financial history and standing and what do they use it for? Credit bureau TransUnion replies: When someone applies for credit from a lender, such as a bank, the lender will purchase that...
The rising cost of education
A recent study by Sanlam done amongst mothers with children aged between 3 and 15 shows that some parents go as far as holding down two jobs to put their children through private schooling, which they perceive to be the best legacy they can give their children. “Our...
The ins and outs of making a UIF claim
Retrenchments are likely to become even more commonplace in the current economic environment as companies downsize and try to contain costs where possible. If you don’t have retrenchment insurance and need funds to tide you over until you are able to find another job,...
Can a poor credit record affect your chances of getting a job?
Katlego asks: To what extent does your credit record affect your chances of getting a job and can an employer run a credit check? If you have a bad credit record does this affect your prospects and does a good one increase your chances? Maya replies: According to the...
Phase in or take the plunge?
Nervous investors may be considering phasing-in their investments, but does it make sense? At the time of writing this article, the market was down around 15% from its high in April 2015, the rand continued to fall to the dollar at 35% weaker than a year ago and the...
Loan scams continue
Tebogo writes: I applied for a R200Â 000 loan from a company called Blue Financial Services. They told me the loan was approved and I had to pay a R200 administration fee, which I did. Then they sent me a lawyers letter requiring an amount of R3Â 750 for cost of...
The impact of tax increases on your R1000
By Ricardo Teixeira, COO of BDO Wealth Advisers With South Africa precariously placed on the cusp of a credit rating downgrade, being able to demonstrate to the global credit rating agencies that ‘SA Incorporated’ is solvent and growing has been a key focus of the...
Time is ticking on disclosing your foreign assets
By Kezia Talbot, Legal Advisor at BDO Wealth Advisers For those taxpayers with undisclosed foreign assets, time is running out. With the introduction of FATCA and a global standard for the automatic exchange of information between countries’ tax authorities, it is...
Budget 2016: What do the Capital Gains Tax changes mean?
By Hedley Lamarque, Certified Financial Planner at BDO Wealth Advisers If you have been planning on cashing in an investment (such as shares or unit trusts) in the short term, then it would be better to do it before the end of February 2016, due to changes in capital...
Why your bills are rising faster than inflation
Whenever Statistics South Africa (StatsSA) releases the consumer price index (inflation) figure, I always wonder whose basket of goods they are using, because I can assure you that my living costs are increasing well above the 5.2% CPI recorded for the year to...