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...
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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....
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...
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...
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...
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...
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...
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...
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...
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...
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New retirement products for a new reality
Recent innovations around retirement products address the issue of how to leave a legacy while still guaranteeing your income in retirement. People generally have two fears when it comes to retirement: firstly, whether they will have sufficient income in retirement,...
Don’t let your financial adviser bully you
By Kagisho Mahura, investment and retirement planning specialist at Gradidge-Mahura Investments. I had a discussion with a client a few months ago that has sensitised me to the power dynamics that exists between financial advisers and clients. The client was a senior...
Car insurance – mind the gap
There are two major purchases you will make in your lifetime for which entering into debt can be justified: one is the purchase of property and the other is the purchase of a car. If you buy a car through bank finance, you will find that taking out comprehensive car...
What determines the short-term direction of equity markets?
Until very recently, global equity markets have been on a steady upward trajectory. Market indices, from America’s S&P 500 to the local FTSE/JSE All Share Index, reached all-time highs. Correlations between equity markets globally, as well as correlations between...
Too young to get ill?
A person under the age of 35 is more likely to claim for income protection or disability than death. While life cover may not be a priority, protecting your future income should be. When Greg, aged 35, was rushed to hospital after a virus attacked his heart, it gave...
Tax Ombud gives a voice to taxpayers
The first Tax Ombud report raises important concerns with SARS processes and has already made a difference to ordinary taxpayers in resolving outstanding issues. In its first six months of operation, from 1 October 2013 to 31 March 2014, the Tax Ombud office assisted...
Bequeathing property in your will – how it can go wrong
By David Knott of Private Client Trust, the fiduciary services division of Private Client Holdings, and a member of the Fiduciary Institute of South Africa. When it comes to leaving fixed property to someone in your will, unless you have had professional assistance in...
Finding your financial feet after a divorce
Considering that almost three marriages end in divorce in South Africa, and research indicates that women are the hardest hit financially after divorce, finding your financial feet after this devastating event can be one of your lifelines. According to Financial...
Are loans a good investment?
Last month we wrote about the growing global phenomenon of peer-to-peer social lending, which links borrowers and lenders directly, bypassing banks and their fees. RainFin, which was the first peer-to-peer online lending platform in South Africa, announced recently...
Talking to your child about money
What is it about money that makes it so difficult to discuss with our children? While many taboos around discussing sex, drugs and politics have broken down, for some reason money remains a topic that many parents feel uncomfortable talking about. So how do you go...