Should You Pay Off Your Home Loan?
Good reasons to pay off your home loan The most compelling reason to accelerate the payment of your home loan is the savings you’ll make on the interest component of the repayments. South African mortgage rates are currently high, with the average rate at approximately 10%. Depending on the value of your home, the interest […]
The Ins and Outs of Buying Offshore Property
Many South Africans are tempted by the prospect of investing in property overseas. Earning a rental income in foreign currency is seriously appealing. It may also be reassuring to know you’ve got somewhere else to live if it ever comes to that. But it’s essential to understand that you don’t immediately have residential rights in […]
How to Invest When There’s So Much Bad News
“Panic is highly contagious, especially in situations when nothing is known and everything is in flux.” (Stephen King) South African investors have every right to feel concerned. The local economy is facing a heap of problems, and growth has slowed to almost nothing. The recent weakness in the rand has only made things worse. The […]
Don’t let Money Ruin Your Relationship
“I don’t care too much for money, for money can’t buy me love.” (The Beatles) For many couples, money is a regular source of tension. And, unfortunately, this can have serious consequences. In a study by researchers from Utah State University and Kansas State University published in 2012, the researchers found that financial arguments in […]
R is for Rebalancing
Ready, set, go… When you first meet your advisor, you’ll provide all your financial details (yes, this can be daunting) and discuss your short, medium and long-term objectives. You’ll also be asked about your attitude to risk, to determine your individual risk profile. Armed with this information, your advisor will allocate your funds to a […]
Who is Influencing Your Financial Decisions?
Last year Kim Kardashian paid more than $1 million to settle a case with the US financial regulator. She had been charged for promoting a crytpo asset on Instagram, without disclosing that she had been paid $250 000 to do so. The law in the US states that anyone who has been paid to promote […]
What is True Wealth?
Many people think that the more money they have, the more they can buy, and therefore the happier they will be. True wealth, however, is not just about living standards. Being wealthy is as much a mindset as it is a measure of what you have in your bank account. It is about understanding that […]
Much Ado About Risk
“The biggest risk is not taking any risk.” (Mark Zuckerberg) So, what is risk, exactly? Investment risk can be defined as the probability of loss relative to the expected return on any investment. It’s a measure of the level of uncertainty of achieving the returns expected by an investor. Systematic and unsystematic risk Investment risk […]
Five Ways to Teach Kids About Money
Any good habits can be bred at a very young age. Learning positive attitudes towards money is no different. Research has found that children understand financial concepts much sooner than many of us realise. The University of Cambridge has found that by the age of seven children will have developed ideas about money that will […]
Compound Interest: The Eighth Wonder of the World
“If you understand compound interest, you basically understand the universe.” (Robert Breault) Don’t be simple One of the best ways to understand compound interest is to know what it’s not — the appropriately named simple interest. This easy example illustrates the difference between the two. Mr X decides to invest in an account that pays […]
