Why Changing Funds May Not Be Wise

changing-fundsOur previous blog posts dealt with some of the practical implications of the 2012 Budget as far as South African investors are concerned. Having dealt with the issues of interest rate exemptions and changes in taxes on dividends and capital gains, We now move on to some practical advice for all South Africans who have equity investments: The fact that switching between funds is not normally a good investment strategy. Continue reading

South Africa’s Best Unit Trusts

unit-trustsMost responsible brokers and financial advisors recommend investing over the long term. Unlike day-trading and short-term investments which often see investors losing money as they chase the ‘next big thing’ on the stock market, long term investment allows your portfolio to grow at a stable rate over the years and decades, while guarding your investments against short-term fluctuations in the markets. Continue reading

The Tax Implications of a Rental Property

rental-property-taxRental properties are evergreen investments in South Africa. From family homes and apartments in established suburbs to sought-after coastal properties that attract a significant rental premium, this asset class offers the stability of property with the potential to earn good monthly returns as the value of the property increases over time.

If you are a rental property owner or are thinking of investing in one, bear in mind that a secondary rental property is not without its tax implications. By understanding how to declare income and expenses on your rental property, you’ll be able to take advantage of your investment without worrying about taxation difficulties. Continue reading

Is Gold On The Way Up Again?

gold-priceRecently, the gold price broke through the $1600 level for the first time in decades. Increasing concerns about the debt crisis in Europe and a possible crisis in US debt have investors worried about the global economic recovery, while China’s growth figures have dropped for the first time in decades. Is gold a favourable investment in these uncertain times?

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Embracing Reality: The Cynic’s Financial Guide

Money guideWhile it may be beneficial to have a positive outlook on life, when it comes to finances a healthy dose of realism goes a very long way! Here are a few financial realities that will help you in your planning:

Unequal financial marriages never last. Unless you and your partner are both financially independent, relationship or marriage problems will eventually arise even in the happiest of couples. Strive for financial independence; it is the surest path to equality in your relationship.

Your salary alone won’t make you wealthy. No matter how much your boss pays, you will never successfully create wealth without investments. Plan your investments and be disciplined in your spending. In the long term you will build a solid base of personal wealth that will allow you to live the way you want to. Continue reading