For the first time in my career as a financial advisor, I am now seeing the actual pitfalls of being financially over geared. We all fall prey to this when we buy cars, houses, businesses and second properties at over inflated prices, pushing our monthly expenses to the maximum, in the expectation that our incomes [...]

Investors who are still building up capital are “net consumers” of investment units – i.e. they are accumulating investment units. They should thus be delighted when the cost of investment units goes down, which is exactly what has happened over the past year as markets have dropped off.

Living annuities are popular investment vehicles that offer flexibility to retirees. However these types of investments require frequent servicing, to ensure that capital is not eroded. In light of current market conditions, clients run a greater risk of capital erosion and advisers are encouraged to review all clients currently invested in linked life annuities.
Recent commentary [...]

Continued…
When does payment to the ex-spouse occur and who pays the tax?
Until recently, the non-member ex-spouse had to wait until the benefit accrued to the member spouse before s/he received his/her part of the benefit under the divorce award. The effects of inflation and the fact that no growth was added to the defined pension [...]

Many people do not realize that their retirement fund benefits form part of the estate which is subject to divorce proceedings. The ex-spouse can actually claim an enforceable divorce award directly from that fund. This aspect of the law can be quite confusing, so we are going to attempt to unbundle it and set it [...]

Use this breath of fresh air to strengthen your personal financial balance sheet.
Tito Mboweni’s announcement on Tuesday 24/03/2009 that interest rates will be reduced by 100 bps came at just the right time for most people. On a million rand bond, your payments are roughly R700 / month less. So since the December 2008 rate [...]

A revised tax table has now been issued by SARS.
On withdrawal from a retirement fund the first R22 500 is tax-free. Thereafter the withdrawal amount is taxed as follows:
R0- R300000 at 18%
R300 001 to R600 000 at R54000 + 27% of the amount above R300 000
R600 001 and above at R135 000 + 36% of [...]