This is default featured slide 1 title
This is default featured slide 2 title
This is default featured slide 3 title
This is default featured slide 4 title
This is default featured slide 5 title
 

How to get the best deal on your personal cheque account

 Bank charges are the bane of many customers.

The latest report by the Solidarity Research Institute shows that increased competition among the nation’s banks appears to be driving fees down. But increased financial pressure on consumers means charges, albeit lower, can still be a significant burden.

So, how do you get the best possible deal on your personal cheque account?

Negotiate your bank charges

There is no law or code regulating the negotiation of bank charges. But Advocate Clive Pillay, the Ombudsman for Banking Services, says the charges levied on ordinary cheque accounts can be fully negotiated.

“In the case of a ‘big account’ with much activity and a reasonable balance, a bank would be more likely to negotiate a reduced rate, to retain the customer, than it would in the case of ‘a small account’, with little activity, such as a salary deposit each month and a number of withdrawals during the course of the month with a very low balance,” he told Moneyweb.

However, it is important to note that the bank can refuse

Top 5 Financial Mistakes Beginners Make

 There’s a lot of financial advice out there. Enough that your head starts to spin when you try to take it all in, understand it, and figure out which pieces are relevant to you.

I’d like to make it a little easier for you by pointing out some things NOT to do.

Here are five of the biggest mistakes I see people making when they first start trying to improve their financial situation.

1. Obsess Over Investment Strategy

There’s often this feeling that if you can just find the perfect investment strategy, your financial success will be guaranteed.

So you read articles, listen to the experts on TV, and tinker with your investments, all with the hope of finding an edge that puts you over the top.

But here’s the truth: the returns you earn, good or bad, have almost no impact on your bottom line until you’re a decade into the process.

What does matter, a lot, is your savings rate. It may not be sexy, but simply saving enough money is far more important than any other investment decision you can

How to Reduce The Costs in An Estate

 The death of a spouse, friend or relative is often an emotional time even before estate matters are addressed.

And truth be told, death can be an expensive and cumbersome affair, particularly if estate planning was neglected, the claims against the estate start accumulating and there isn’t sufficient cash to settle outstanding debts.

People generally underestimate the costs related to death, says Ronel Williams, chairperson of the Fiduciary Institute of Southern African (Fisa). Most individuals have a fairly good grasp of significant expenses like a mortgage bond that would have to be settled, but the smaller fees can also add up.

To avoid a situation where valuable assets have to be sold to settle outstanding debts, it is important to do proper planning and take out life and/or bond insurance to ensure sufficient cash is available, she notes.

Costs

The costs involved in an estate can broadly be classified as administration costs and claims against the estate. The administration costs are incurred after death as a result of the death. Claims against the estate are those the deceased was liable for at the time of

Get Your Annual Financial Checkup

Earlier this month, my doctor wanted to know why I hadn’t come in for my annual checkup. I was visiting her on an urgent pain matter when she asked. I admitted than I was embarrassed that my exercise program had fallen apart after an injury and that I had only started up again nine months later — just a few days before my visit.

My bad indicators were up, as she knew from my trip to the emergency room earlier in the day.

I share this kind of TMI because I see the same situation with my clients. They come in with an urgent matter, and I ask the same kind of question, and I frequently get the same response: They were embarrassed to have fallen behind in saving or debt management.

Like my doctor talking to me, I point out that financial planners are here to help clients get back on track with habits that help them reach their financial goals.

Just as a good doctor will do more during a checkup than simply take your temperature and put you on the scale, an annual checkup with a financial planner should go beyond

The Boring Secret to Getting Rich

The media likes to paint a certain picture of what it means to be rich — huge mansions, expensive cars, high-powered Wall Street or tech-startup-type jobs. If you buy into that image, being rich may feel like an impossible dream.

But the truth is that most “rich” people live very normal lives. You probably wouldn’t even know they were rich if you saw them because they don’t fit the stereotype. Most rich people are a lot like you and me. They just know a secret that, while incredibly effective, isn’t very sexy.

The secret to getting rich

The secret to getting rich is as powerful as it is unexciting: live below your means.

That’s it. The bigger the difference between what you earn and what you spend, the sooner you’ll find yourself with enough money to do what you want with your life.

Now, I realize that “live below your means” may sound obvious or trite. That doesn’t make it easy. It’s actually much harder than it sounds. Many of the people you see with big houses and fancy cars are up to their eyeballs in debt, which means they’re violating this basic

3 Ways Managing Money Is Like a Mountain Marathon

After limping across the finish line, soaking in Sharkey Hot Springs and sleeping like a log, I had a chance to reflect on the experience. As a financial advisor, I found that what I’d just gone through held some powerful lessons about managing money.

No pain, no gain

Watching a YouTube flyby of the race course last winter — a video with calming music and breathtaking scenery —I thought it looked like a great thing to do. Having done it, and having had the chance to recover for a while, I know for sure that it was. While I was doing it, though, it was painful. Like, how-the-heck-did-I-get-into-this-mess painful. Going through the pain was what I had to do to make progress.

Ever had to reallocate your portfolio in the middle of market hysteria? Buy stocks when they are down 40%? Buy bonds when stocks are up 40%? It can make you a little ill to stick to your plan in times like that, but that discipline is what makes you successful.

How about going through the painstaking process of tracking exactly how much you spend? Asking your financial planner how much his management fee plus the underlying fund fees

What College Students Need to Know About Money

The financial life of a typical college student is rather simple, but unfortunately, many students still aren’t equipped to handle money. They often arrive at college not knowing how to budget, how credit cards work or how to understand ATM and debit card fees. And while many students take out loans to attend school, they may not fully understand the implications.

In general, schools and parents tend to fall short in teaching students how to manage their money. That’s too bad, because if students understand just a few basic personal finance concepts, they will be better off during their college years — and once they head out into the real world.

Here’s a quick primer on the most important things for college students to know about their finances.

Budgeting

A budget should be based on reasonable expenses. If you begin college life thinking and spending conservatively, a low-paying first job won’t come as quite a shock.

To get started, estimate your monthly expenses (beyond room and board, assuming these are already covered). You can work with your parents to fine-tune this estimate if you aren’t sure.

If you get an allowance or expense money

4 Steps to Merging Finances with Your Partner

I work with a lot of new couples who are in the midst of merging their financial lives for the very first time. In fact, my fiance and I are in the process of doing it ourselves too.

It’s not an easy thing to figure out. There are logistics to handle, habits to change, emotions to manage, and often it feels like there is never enough time in the day for any of it.

But successfully managing money together is key to creating a happy partnership, so here are four pieces of advice as you go through this process yourself.

1. Focus on Joint Goals, Not Joint Accounts

It’s tempting to get caught up in the logistics of joining your finances. How do you create joint accounts? Which accounts should you join? What if you want to keep some money for yourself? Does that mean your relationship is in trouble?

Ignore all of that. It doesn’t matter. At least not at the start.

The Secret Way to Make Huge Financial Gains

Most personal finance advice misses a crucial point.

Lost amongst all the calls to cut coupons and skip your morning coffee is the fact that cutting costs isn’t the only way to get ahead.

In many cases, a raise can be far more powerful in helping you reach your biggest financial goals. And it may not be as hard to get as you think.

The Power of a Raise

Let’s say you currently make $60,000 per year and you’re able to negotiate a 10% raise (more on how to do this below).

Assuming that 25% of that new income goes to taxes, that means you now have an extra $4,500 to save each year, which is almost enough to fully fund an IRA.

Looking at it another way, that extra $4,500 represents a 7.5% return on investment, which is right in the range of what experts expect from the stock market.

So by negotiating a raise, you’ve given yourself a stock market-like 7.5% return. And unlike the stock market, that 7.5% return will be consistent year after year.

And if you’re investing that $4,500 each year, you’ll earn additional returns

Financial Planning and Uncertainty

Benjamin Franklin once wrote, “Tis impossible to be sure of any thing but Death and Taxes.” But even death and taxes are uncertain enough to present significant financial planning challenges.

Unfortunately, it is quite easy to conclude that financial planning is a waste of time because no one can know the future. But we do know that we’ll need to set something aside for the future, we won’t earn wages out entire life, and prices will probably continue to inflate. The only other crucial assumption we need to make in financial planning is that every other assumption we make is wrong.

Let’s face it, managing our finances and making important money decisions involve making a lot assumptions:

  • How much will I save? Spend?
  • How much money will I be making? For how long?
  • How much will I need for emergencies?
  • Should I buy or rent?
  • What if I need to move for work?
  • How much should I invest? Keep in cash?
  • How much money will I need to retire?
  • Inflation?
  • When will I retire? Will that be in a bull or bear market?
  • How much risk should I take?
  • What will the markets return?
  • How much insurance do I need?
  • How much will healthcare cost?
  • What will my

Financial Planning: Unplugged

There’s a lot of fancy talk out there when it comes to financial planning. It’s a profession that loves its jargon, calculations, and software-based projections. When it gets down to it though, confidence in your financial plan boils down to two things, knowing where you are and where you’re going.

Knowing where you are

Simply put – you need a budget. Don’t frown. Let me explain. Budgeting is not about what you can’t do with your own money, but what you CAN do. Have you ever felt guilty about a purchase? Have you ever thought to yourself in the store “ugh, I should really hold off, we’re trying to be better about this”? Do you feel like all the effort and restraint doesn’t seem to be paying off in your checkbook from month to month anyways so why bother? Know what? A properly executed budget can free you from all that. Really.

To live a better life today and tomorrow, you need a sustainable budgeting process that accounts for your needs, funds your most important and enjoyable wants, and allows you to plan for your future with hope and confidence. Yes, a spending plan is the key

Financial Advisors Have Fiduciary Duty

During a discussion with a group of financial planners, mostly fee-only “solo-preneurs,” I suggested that many of us would be extremely challenged to serve all clients as their fiduciary and provide all their needed services.

One advisor shared that she had recommended outsourcing the ongoing management of a client’s portfolio to a highly regarded, low-cost money management firm. All things being equal, she said, she couldn’t provide the services for anything close to the price of the outsource firm.

This advisor recognized that her highest and greatest good for her clients was in her financial planning skills and in serving as a catalyst to help them do what was in their best interests. She felt that their portfolio needed ongoing oversight and recommended someone other than herself to provide that service. The advisor acted in her clients’ best interests — just as all fiduciaries are required to do.

The client appreciated the thoughtfulness of the recommendation but elected to keep everything with the planner. With full disclosure and informed consent, the advisor had fulfilled her fiduciary duty.

But what is our fiduciary obligation to prospective clients, as opposed to existing clients? Investment advisors are fiduciaries under the Investment Advisers Act

6 Habits of Highly Successful Savers

1. Pay yourself first

Highly successful savers maximize their retirement plan at work, or they create one if they’re self-employed. Some self-employed people manage to put away more than $50,000 a year in a Solo 401(k). They also frequently enable and fund spousal IRAs, Roth IRAs and/or non-deductible traditional IRAs that convert to Roth IRAs.

2. Practice frugality

Many successful savers grew up in households that clipped coupons, bought things only when on sale or used, and practiced group discount behavior (multiple families sharing things). They continued these practices as adults, mirroring their parents or even taking things to a higher level.

3. Track expenses

People who closely track where their money is going can see where a change might have the biggest impact. Bloated cellphone, cable/satellite and Internet service plans are perfect examples of where families might be able to cut spending and save the difference. In my own case, I bought a new life insurance policy to replace a more expensive older policy after contacting my agent to see how I could lower this expense.

4. Attack debt

Paying off debt to free up more cash to tuck into savings is a

For a Successful Financial Plan, You’ll Spend Money

On the surface, the cost of a financial plan is simple: generally between $2,000 and $4,000, depending on its complexity and where you live.

But dig deeper and you’ll find that the plan’s success also depends on you spending time to implement it.
Consider the case of a young physician who recently came to my office inquiring about a financial plan. His primary issues were cash flow with tax considerations, debt service and investment advice. I suggested he would also need an insurance review and estate planning, since he had none. At the conclusion of our getting-acquainted meeting, my colleagues and I quoted a fee for the financial plan and what it would include. He decided to work with us.

Next we had a goal-setting meeting and collected his pertinent financial documents such as his tax return, investment statements, debt statements and more. We provided risk-tolerance questions and discussed his short- and long-term goals in greater detail. Then there was an interim meeting where we reviewed his goals — to be sure we prioritized them correctly — his risk-tolerance results and his investment analysis.

A couple of weeks later, we had a plan-delivery meeting, where we reviewed the

How to be Mindful About Costs When Planning a Wedding

I’m in the middle of wedding planning right now, and it has opened my eyes to just how incredibly expensive this whole thing can be!

I’m a frugal person at heart so the idea of spending a ton of money on one day seems a little silly to me. But it’s hard not to get caught up in all of it, and I’m finding that the costs are adding up quickly.

So, how do you have a wedding you love without spending more than you can afford? I’ve been thinking about this as I plan my own wedding. I’m fortunate that my parents have been very generous, and here are a few things I’ve learned along the way.

Plan Ahead

Yeah, I know. Big surprise that the financial planner is encouraging you to plan ahead. But there are two reasons why it’s helpful to make a plan before making any final decisions.

First, it’s amazing how quickly even the little costs add

Private versus public pay practices

Remuneration practices have far-reaching consequences, not only for individuals and companies but for the economy as a whole.

Employees’ personal finances for the most part, depend on their salaries. These salaries allow them to procure goods and services which stimulate the economy and ultimately form the life blood of the economy. These salaries, however, cannot simply be raised indefinitely in a bid to stimulate the economy (through increased demand), as the cost associated with these increased salaries will cause the cost of goods and services to rise (inflation). As a result, individuals would still only be able to purchase the same basket of goods as they did before, despite the increased salaries.

Employee remuneration is more often than not, the largest percentage of a company’s total expenditure. As a result, firms are highly concerned with their pay practices as they impact on their financial bottom line.

The pay practices of public (municipalities and State-owned enterprises (SoE)) and private sector firms differ significantly, particularly at the lower levels. According to 21st Century’s salary database, Table 1 shows the pay practices of the public and private sector at each occupational level.

Executives have been left out

Tips for teaching your children about money

For many parents, money is an uncomfortable subject. Discussing finances with your children is either too scary or too personal for many people.

However, a panel of experts at The 2016 Money Expo agreed that this is one of the most important subjects any parent has to manage. Preparing your children for their financial futures is one of the greatest gifts you can give them.

Nikki Taylor from Taylored Financial Solutions said that the earlier parents start on this journey, the easier and more effective the lessons will be.

“For me, it’s about starting them early,” said Taylor. “How do you teach children manners? You don’t wait until they are 15. You start when they are really young.”

Brand manager at Emperor Asset Management, Lungile Msibi, said that even two- and three-year olds can appreciate the lessons of delayed gratification and working towards a goal.

“Start kids when they are young with goal-based savings,” she advised. “If they want a Barbie doll, for instance, show how they can save towards that goal. That’s important because later in life they will understand that you can’t invest if you don’t have a goal.”

As

Financial planning tips for women

South Africans often don’t see the need to draft a will, especially when they are relatively young or don’t have a significant asset base.

It is estimated that at least half of the estates reported at the Master’s Office each year are of people who died intestate (without a will).

In celebration of Women’s Month, the Fiduciary Institute of Southern Africa (Fisa) discusses some financial planning considerations women should take note of.

You need your own will and have to understand the implications of your partner’s estate planning

Chairperson Ronel Williams, says in practice, Fisa often finds that where a woman does not have a lot of assets, or leads a busy life, proper estate planning is neglected.

This could have far-reaching consequences.

Where estate planning is done, it is important to not only consider current circumstances, but to plan for the future, should the situation change, she says.

One example is in cases where a woman’s husband passes away, leaves the bulk of the estate to her and she dies shortly thereafter.

“So then suddenly she does end up with having quite a sizeable estate and her will actually doesn’t

Am I Ready to Predict the Next Stock Market Crash?

From a low of 676 on March 9, 2009, the S&P 500 stands at 2,090 as of June 21, 2016. That’s a 209% increase over a period of just over 7 years.

And yet, things have been a little rocky so far this year.

The stock market dropped 9% from 1/1 to 1/20. It dropped another 6% from 2/1 to 2/11. And it fell 2% from 6/9 to 6/15.

We’re still near all-time highs, but is it possible that we’re at the top? Am I ready to predict the next stock market crash?

Of Course Not

I’m guessing you saw this coming, but no I’m not predicting the next big stock market crash.

The truth is that I have no idea what the stock market is going to do over the coming months, and neither does anyone else, no matter how loud they yell at you from the TV.

While the stock market is an incredibly powerful place to grow your money over the long term, it can be a roller coaster ride in the short term. Big upswings are followed by big downswings, leaving you to watch somewhat helplessly as

Give the gift that keeps on giving

This time of year sees both children and adults preparing their wish-lists for the upcoming festive season. But as many South Africans continue to grapple with rising debt, now is a good time to shift the focus from giving material items to providing future financial well-being.

Giving a child an investment as a gift will not only promote a culture of saving from a young age, but will also show them how you can make money grow.

There’s a powerful story of one customer’s commitment to leave a legacy for his family, and the value of sound financial advice. In November 1968, a customer made an initial deposit of  R400 into the Old Mutual Investors’ Fund and 48 years later, his investment is today worth over R600 000.

More precious than the value of his money, however, was the culture of saving and the legacy that he passed on to his children and grandchildren. On special occasions such as Christmas and birthdays, he invested a set amount of money on his children’s or grandchildren’s behalf. With this investment, his daughter was able to provide for her daughter’s schooling.

If South Africa is to develop a generation of