Creditors: How to Secure Your Claim with a Notarial Bond
You should always take as much security for your claims as you possibly can before advancing credit or lending money to a debtor. That’s because if your debtor fails and is “liquidated” (if a corporate) or “sequestrated” (if an individual), without security you will...
Why You Should Sign a Power of Attorney Before You Emigrate or Travel
If you are emigrating, or perhaps just going overseas for an extended holiday or work contract, you may well leave behind some form of “unfinished business”. Perhaps you own a property, other assets or bank accounts needing attention, or have outstanding...
Get Rich & Stay Rich: 8 Mistakes Wealthy People Never Make
“Many folks think they aren’t good at earning money, when what they don’t know is how to use it.” (Frank A. Clark) Getting rich isn’t as hard as it sounds. Years of consistent, calculated investing are almost guaranteed to fill up your coffers. For many, the trickier...
Loss Aversion and Lifestyle Creep – How Behaviour Influences Saving
“For everything you have missed, you have gained something else.” (Ralph Waldo Emerson) Don’t be biased towards short term loss ‘Loss aversion’, from an investment perspective, refers to our tendency to avoid losses over acquiring gains. For example, we all know that...
Your Will Can’t Wait: The Tragic Case of a Mother Who Took Too Long
“We are such stuff / As dreams are made on, and our little life / Is rounded with a sleep.” (Shakespeare) We aren’t comfortable thinking about our mortality, but death comes to all of us and it is our loved ones who will suffer if we don’t make plans to look after...
The “Two Bucket” Retirement Savings System: What is it and Why is it Important?
"Many drops make a bucket, many buckets make a pond, many ponds make a lake, and many lakes make an ocean.” (Percy Ross) According to a recent survey by Just SA, only 11% of South Africans over the age of 50 feel “really confident” that their savings will last if they...
Much Ado About Regulation 28 and the Private Investor
What is Regulation 28 The management of retirement funds is highly regulated – as it should be. After all, these are your life savings we’re talking about! The key piece of legislation governing how retirement funds can be invested is called Regulation 28 of the...
The Risk That Many Investors Don’t Think About
'Liquidity risk' probably sounds like something technical that most investors don’t need to worry about. In reality, however it is something that is likely to affect everybody at some point. The liquidity of an investment refers to how quickly it can be sold. Shares...
Capital Gains Tax: 10 Common Questions Answered
1. What’s the difference between CGT and income tax? CGT is a component of your income tax. When you sell an investment, 40% of the profit is added to your income and taxed at your marginal tax rate. CGT can apply to shares, unit trusts, property, crypto currency and...
Women’s Month: Three Ways You Can Improve Your Money Health
"Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver." (Ayn Rand) In Women’s Month, it’s right to reflect on how far we have come regarding women’s rights. The equality of the sexes is pretty universally agreed. However,...
Does Your Family Need a Constitution?
“All happy families are alike; each unhappy family is unhappy in its own way.” (Leo Tolstoy) What is a family constitution? You may have heard people referring to their Family Constitution, Family Charter or Family Protocol. These are all different ways of describing...
A Simple “50-15-5” Budget Hack for Women (and Men!)
“It takes as much energy to wish as it does to plan.” (Eleanor Roosevelt) A lot of people don’t like budgeting. Many try it for a few months but give up because it’s too inconvenient. They feel it restricts their enjoyment of life and leaves them feeling guilty about...