Many first-generation yuppies have come to realise that they need to enter the property market. However, most of them find that getting a home-loan of between R1 500 000 and R2 000 000 is not always possible.
The creative ones usually find a way around this dilemma by purchasing a home in the R300 000 to R700 000 price range. The home is then used to generate a rental income. The rental is often sufficient to cover their bond repayments. This leaves many of them happy landlords.
The last blog touched on how Northwood protects clients’ wealth by adding diversity to the unit trust investment portfolios on offer. This week, we will look at creating wealth by adding more diversified investments.
Our clients know that when it comes to investments, we prescribe to the “don’t put all your eggs in one basket” philosophy. We seek to add value and diversity to all our client’s portfolios to creatively manage risks.
Ever since the news broke that South Africa’s credit rating was downgraded to junk status, our office has been inundated by calls and emails from concerned investors that listen to Finance 101 on CCFM.
Most of these investors have investments with insurance companies, and experienced a significant loss of their investment capital. However, investors with Passive Investments reported the highest losses.
When it comes to debt, there is the misconception that all debt is bad.
Not many people understand the concept of “Good Debt” vs “Bad Debt”. Continue reading
When you make an Off-Plan purchase, you are essentially buying a home that does not yet exist. There are quite a few details which need to be verified before you decide to go ahead. Continue reading
At present, the majority of financial planners in the greater financial planning industry work on a commission-based system. Here, the financial planner works their personal fee into the total cost of the policies and packages to which he or she sells their clients.
Although a typical industry standard, a financial planner working in accordance with a commission-based system faces two challenges: Continue reading
During the course of our careers, in our respective places of employment, we may receive a number of promotions and salary raises that will aid toward increasing our monthly incomes. Despite this, our incomes; or our costs to our respective companies; will never bring us wealth. Our employers will often award us a sum each month that allows us to be comfortable, or at minimum, survive the month. Wealth is created through making clever decisions and having strategic financial plans in place. To grow your wealth, you should seek to have more than one income stream, as it is those extra income streams that create wealth.
We have all faced the nightmare of looking at two quotes for investments and trying to decide between which is the better option.
Our challenges are that:
- True costs are not disclosed
- Subtle charges are not disclosed
- Strange terms such as TER or RiY are used
Lately, the South African government has been looking to address the prevalent problem in our society of both individuals and households simply refusing to save a large enough portion of their income. The government’s solution to this problem? New tax free investments made available to all!
Why is Saving Important?
It can be very tempting to go out and spend all your money as soon as you receive it but there is no denying that this strategy will have disastrous consequences in the long run. Continue reading
When an important financial player such as Allan Gray announces a sweeping policy change to their Equity Fund unit trusts, it is usually a good idea to pay attention. So what are these changes? And furthermore, why have these changes been made?
The primary change to concern yourself with if you’re an investor in Allan Gray’s Equity Fund is the decision taken by the financial firm to invest a greater percentage of their funds offshore. But Why? And is this a good thing? Continue reading