By Paulo Senatore and Franco Barnard, Ashburton Investments One hundred rand invested in 1995 would be worth R1 400 today, if dividends were reinvested. Where dividends were drawn and not reinvested, the same R100 would be worth only R855. Albert...
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How a boiler room scam works
If an overseas broker calls you out of the blue to sell you shares, you don’t need to ask - it is a scam. Two months ago Ross received a call from a trader supposedly working for a Shanghai-based stockbroking firm. Ross was told that he had been...
Can I look after my own pension?
Nelson wants to cash in his pension in the hope that he can invest it for better returns. “I have been employed by the government for about 20 years. Recently the government sent a letter showing the amount I would receive if I retired, resigned,...
Consumer Protection Act: When can you demand a refund?
The Consumer Protection Act provides significant protection for consumers; the Act does not, however, remove the obligations of consumers when undertaking an agreement. “A small business hired a hall for an event scheduled for 7pm on a Saturday...
How to save for your child’s education
Choosing to save for your child’s education ahead of your own retirement plan may be a risky strategy but it is understandable given the rising costs of education. According to the Old Mutual Savings and Investment Monitor, 54% of South Africans...
Bankrupted by the body corporate
Sectional title is often the more affordable way to buy a home but it comes with its own challenges and you need to be a proactive resident to ensure your body corporate is run properly. A City Press reader was recently informed by her body...
New Retirement Annuity product still too costly
The launch of Itransact, a new index tracking retirement annuity, highlights the growth in passive investing but the costs are still too high. This week Itransact launched the first retirement annuity to invest in exchange traded funds (ETFs)....
Breaking the myths around buying a new car
Leave the buying of new cars to people who don’t understand maths, or to those for whom status is worth more than building wealth In the book The Millionaire Next Door: The Surprising Secrets of America’s Wealthy, authors Thomas J Stanley and...
The best gift to give your children
Think differently about what makes a great Mom The truest thing ever said about becoming a parent was by author Elizabeth Stone who said deciding to have a child was to “decide forever to have your heart go walking around outside your body." Most...
Investment scam: If it seems too good to be true, it usually is
A reader alerts us to a new scam “I was making some research on investments and come across the company called Zantech Trading. They say if I invest from R10 000 once off I will get 25% dividend of the capital back for 12 months. In other words I...
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Saving towards a 5-year goal
A reader wants advice on where to save towards buying a property. “My mother, sister and myself would like to open a savings or investment plan whereby together we would contribute R900 monthly and increasing it by R300 yearly or bi-annually for five years. We want to...
Card fraud: don’t transact in the open
Free internet connectivity provides an opportunity for fraudster. Free internet services are the hunting grounds of fraudsters who use remote devices to log keystrokes on your laptop when you transact online, says Henk Vermeulen, card fraud specialist at FNB. “Free...
Understand income vs growth
Which investment is right for me, asks a reader “I am 27 years old and currently working as a petrol attendant at a garage. I am interested in investing for income purposes. I saw that Old Mutual has an investment scheme called Income For Life which requires a minimum...
Financial literacy: lessons from abroad
Last month I spoke at the Financial Literacy & Education Summit, an annual global conference sponsored by Visa that addresses issues around financial literacy. Engaging with global experts not only allows one to share country experiences but is also a benchmark...
Getting out of debt is about a change in attitude
“In 2011 after getting advice through City Press I managed to pay off all my debt. I have since gotten married and we bought a house and a car. Now we are in debt and a financial mess. I have two credit cards totaling R27 000, an overdraft of R21 100 plus a revolving...
Make April 27th your Debt Freedom Day
The 27th of April is Freedom Day in South Africa, marking the annual celebration of South Africa's first non-racial democratic elections in 1994. Since political freedom, South Africans have striven to correct the wrongs of the past. South Africa currently has 19.69...
The best way to preserve your pension
David Elliott of Marriott Asset Management explains how to choose between a preservation fund and a new employer’s pension fund when moving jobs When you change jobs, you receive a pension pay-out, but the best thing to do with these funds is to keep them invested for...
Why money matters are gender biased
As a panelist at the global Financial Literacy and Education Summit, to be held in Chicago on April 17, I will be joining other personal finance journalists from around the world to provide a perspective on women and financial literacy. This has led my thoughts to the...
Rising costs of car ownership
With steep increases in the price of petrol, the running costs of your car could be as much as your monthly instalment. Last month South African motorists faced the largest ever petrol price increase with the cost of petrol increasing by a massive 81c per litre. The...
Lessons from an entrepreneur
Creating a successful business requires two important elements: identifying a gap in the market and managing your finances, which includes keeping debt to a minimum. After working as a sports commentator during the 2010 World Cup, which enabled him to travel the...