While borrowing money is generally a bad idea, a student loan is an exception. For individuals who work hard, get their qualifications and manage their loan repayments, a student loan can lead to wealth creation. According to Advtech, within two...
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Asset classes: which were the top performers in 2014?
2014 was a risky year for the short-term investor. Some asset classes started out outperforming others in their category but ended up at the bottom of their class. Shaun Ruiters, head of strategy and client solutions at Sanlam Investments Retail...
Financial tools to keep you on track in 2015
In today's Internet age, keeping yourself on track financially has never been easier. There are a range of websites, smartphone apps and online financial tools to help you along the way. Track expenses and create a budget Find a way to track your...
Making sense of interest rates
Last week, consumers received good news from the South African Reserve Bank (SARB) that the repo interest rate would be kept at 5.75%, which means that the retail rate at which consumers are offered credit, would stay at 9.25%. Absa provided this...
The JSE: mind the gap
The JSE continues to trade at record levels alongside a depressed South African economy. David Leslie, a director of Belmont Asset Management, explains the logic behind this apparent contradiction. It’s no secret that the South African economy is...
The fine art of franchising
You want to be your own boss and becoming a franchisee seems like the perfect way to do it. Before you go racing off to make your fortune, though, there are a few things you need to bear in mind. Zanele Mvelase was on the executive fast track in...
Should I pay off my bond with my pension?
If you cashed your pension in to pay off your bond make sure you replace it over time. Sego writes: I have R100 000 from my pension fund which I cashed out last year. I am 30 years old and have a retirement annuity which I took out recently. Should...
Momentum Financial Wellness Competition winner
Monday was the last day for the Maya on Money/ Multiply competition and congratulations go to our winner Afika Soyamban who will receive R2 500 in Dis-Chem vouchers. After completing the Momentum financial wellness assessment Afika committed to...
How does one invest in dividends?
Understand the difference between investing and trading. Sidwell writes: I read your article entitled "Using dividends to earn an income". I'm currently one of the many people who in fact invest for "share prices". Investing in share prices is...
How small businesses can manage increased risk this holiday season
Santam provides some safety tips for small-business owners to avoid becoming victims of crime at a time when profits need to be maximised. As the busy holiday season approaches, small businesses often find themselves more vulnerable to security...
Previous Articles
Should you pay school fees in advance?
by Niel Fourie, Public Policy Actuary, Actuarial Society of South Africa The short answer to the question "Should you pay school fees in advance" is: not if you have other short-term debt. Most schools have informed parents of the new school fees for 2015, which...
The financial Armageddon we call the “festive season”
Remember those days when you looked forward to the Christmas holidays? Long lazy summer days eating lychees and mangos; waking up on Christmas morning to gifts under the Christmas tree; a family feasts where you ate until you were ready to burst. When did that all...
Investing a lump sum near retirement
Make sure your retirement is taken care of before you help out your adult children. Themba writes: I have just sold my home for just over R 1 000 000 and would like advice on how to invest the money in a responsible way. In December this year I will also be receiving...
Settle your mortgage or invest the capital?
By Ferdi Booysen, Head of Strategic Relationships at Old Mutual Wealth The higher interest-rate cycle begs the question: is it currently better to use your investable funds to pay off your mortgage or to add to your retirement savings? Recent interest-rate hikes – and...
Japan remains compelling global investment
Urvesh Desai, Portfolio Manager and Strategist for Old Mutual Investment Group's MacroSolutions boutique, outlines why he believes Japan is still a very positive investment story. By reducing investment exposure to Japan based purely on two quarters of negative GDP...
Buying a car in December
By Nicholas Nkosi, Head of Vehicle and Asset Finance – Personal Markets, at Standard Bank It is natural to think about the joys of starting the New Year in your dream car when your bank account is filled with an end-of-year bonus. However, is it advisable to buy a...
Using dividends to earn an income
When it comes to passive income most people think of property, yet a share portfolio can also be used to generate an income – one that is well diversified, tax efficient and does not require any tenant management. When it comes to investing in shares most people focus...
Concerns with eFiling and erroneous tax registration
Concerns about SARS eFiling have been raised in the first annual report issued by the Office of the Tax Ombud. In several cases bank details were changed on the eFiling system resulting in a refunds being paid into a third-party bank account. In other cases fraudulent...
Preparing for life’s surprises
Our parents’ experiences can teach us a great deal about how we should be making plans for our own futures. My mother, who is now 75 years old and relies on a pension, has seen her food bill increase from R500 per month to R1 200 in just six years – that is a 140%...
Smart beta under the spotlight
Over the past few years, passive investment funds have burgeoned into a range of styles and types, many of which were not around 20 years ago. The real interest today is in the more sophisticated, but largely misunderstood smart beta funds. What exactly is smart beta?...