Flipping banks! Was chatting with a client yesterday who was relating his sorry tale of applying for a bond…here are the facts; you decide if this is ok! Net income – R45000, bond applied for R1075000 on 10th Jan 2011 (house value – R1.56million, deposit – R485000). The banks replied as follows: ABSA – “our bond people are off until Feb so we can only let you know then”. Nedbank – “your...

Living annuities have received a lot of press in the past while and much of it has been critical of the product (sometimes rightly so). The issue has mostly been around the erosion of income because of poor fund selection and an income draw that is too high and thus not sustainable. This has resulted in ASISA producing a revised code for Living Annuities that was introduced in Sep 2010. The intention is noble but in my opinion, the added...

“They prowl the empty streets (at night), waiting in fast cars and on foot”* looking for unsuspecting consumers. Yes, it’s that time of year again when Retirement Annuity salesmen are on out in full force. February is “traditionally” RA month as it signifies the end of the tax year and anyone needing to put money into an RA has until the end of the month to do it. RA’s have received a lot of press (not all of it good) and...

Black is the new gold – at least that’s what Woolworths want us to believe… Been thinking about credit cards quite a bit recently and wondering if there is a “best” option. So I have been looking at some of the offerings and the first one I am writing about is the “new” Woolworths Black credit card. On the face of it, it seems quite appealing. Assuming you earn enough to qualify for the card (I think it is >R500k...

I remember, as a kid, reading about Doctor Dolittle and the fantastic “pushmi-pullyu” a gazelle-unicorn cross with two heads (one of each) at opposite ends of its body. Whenever it tried to move, both heads went in opposite directions and as a result it went nowhere. I had to apply for a tax clearance for foreign investment for a client of mine and could not help but think how the current tax clearance process reminded me of the...

I remember reading a small book (about 15 years ago) called “The Greatest Salesman in the World” by Og Mandino – I remember the book making a real impression on me at the time and in particular I remember the following… “I will persist until I succeed. I was not delivered unto this world in defeat, nor does failure course in my veins. I am not a sheep waiting to be prodded by my shepherd. I am a lion and I...

I attended the launch presentation of ETFSA towards the end of November. Exchange traded funds are increasing in popularity both globally as well as locally so I thought I had better find out more. ETFSA is an investment platform which provides access to all the ETF’s in SA and also plans to make a an ETF retirement annuity an option. While I can see the role that ETF’s can play in an investor’s portfolio there are a few misquoted...