You should be worried.
Well, there's one industry in South Africa that's in absolute shambles. In fact, I would go as far as to say, this industry plays a huge role in how you live (even survive) in the future.
That's why you shouldn't ignore what I'm about to show you…
The numbers don’t lie…
Less than 10% of working Sout... ››› more
Regular readers will recall I wrote an article a few weeks ago, which claimed that investing the full Tax Free Savings Account (TFSA) allowance for your new-born child would turn him into a billionaire by the time he retired.
Even after the effects of inflation, this investment would mean R200,000 per month income, in today's money.
An explosive claim, I know, but one that I can back up wi... ››› more
Tax year end is fast approaching.
This means, next week Wednesday, your tax breaks for the 2017/2018 year will expire.
Fortunately, it's not too late to maximise all your benefits before you lose them.
But don't worry, because today I'm going to show you how to do this…
Three tax breaks every investor receives
As a private investor you receive three main tax breaks:
... ››› more
I've been looking at ways to reduce my donations to the Nkandla Fund (SARS income tax)…
I have no objection to pay tax - when the government that receives that money makes use of it responsibly. But that's not the case at this stage.
And by putting off paying tax (legally) I can get my money to work for me faster than when I give nearly half of that away to the tax man.
Now instead o... ››› more
The JSE Top 40 closed the week down 1,5%.
Higher commodity prices; Gold, Silver and Brent Oil were up more than 2%, while Platinum managed 1,6%. These were not enough to save the Resources Index (down 3%) from a stronger Rand. Industrials and Financials were also softer.
Anglogold up 9,3% and Harmony 9,5% responding to a firmer Gold Price (up 2,5%).
PSG rallied 6%, see comment below. ... ››› more
Since my last article on the subject of structured products I have received a number of enquiries from readers asking for more information. Due to the overwhelming response I decided to do this follow-up article and go over the most frequently asked questions.
First, for those who may not have read the original, here is a brief recap. I discussed a currently available structured product with ... ››› more
The Davis Tax Committee (DTC) has issued an invitation for submission, by the public, on a proposed South African wealth tax. You are likely familiar with taxes on income (PAYE) or even spending (VAT), but you have likely never encountered a true wealth tax.
A wealth tax, as the name suggests, is a tax on your wealth.
There are three basic forms discussed in South Africa. The first two, de... ››› more
In a recent report from ETF.com data released shows that the US have had $250 billion worth of cash inflows into ETF's during 2017 alone!
According to an estimate by The New Yorker, around 20 percent of the market in the US is made up out of JUST ETF's.
And “When you factor in “closet indexing”—when individual or institutional investors pursue indexing strategies without declaring... ››› more
There are just two certainties in life: Death and taxes. Unfortunately, these are also the two topics people find most unpleasant to think about.
For higher net worth individuals, understanding your taxes is almost as important as understanding investments. If you're a high income earner in South Africa, a return of 11% can be equal to one of 20% under the correct tax treatment.
Many reader... ››› more
In 1995, SARS collected just over R127 billion in tax revenue.
Today, that figure stands at R1.14 trillion.
By 2018, SARS aims to collect R1.26 trillion in tax revenue.
In short, SARS is coming after more of your money.
And they will do everything in their power to get their greedy hands on as much of your money as possible.
But what if I told you…
Th... ››› more
Last week's sentiment remained positive and markets continued their rally. President Trump's first days in office are being closely monitored and provide plenty for traders to digest.
The JSE Top 40 closed the week up 0,8%, but retreated slightly on Friday along with generally softer developed markets; for the year to date the JSE is up 7,7%.
Kumba rallied 27% after it provided a product... ››› more
When you first decide to invest in a property the excitement pumps you up. Your heart starts racing, you already see the cash rolling in…
But before your ambitions run away with your good judgement you should take a step back and evaluate whether the property you're looking to invest in will provide you with growth - or is it a cash-trap that'll suck your wallet dry.
What to look for in ... ››› more
It's coming to that time of year when many people may have an end of year bonus to look forward to.
Whilst your first thought may be to go out and splash it, you should resist the temptation.
So what should you do with your bonus instead?
Read on to find out…
What you can do with your bonus
There are definitely ways you can put your bonus to better work than splashing it on u... ››› more
If you've been thinking of buying a new car, think again.
Buying a new car is generally a bad investment because it depreciates in value quickly and has high monthly costs.
Like most bad investments you make, the decision to buy a new car is ultimately driven by your emotions. You want to be the envy of your colleagues, friends and family pulling up in a spanking new vehicle.
Slick car... ››› more
Just imagine the shock I got when I read that, “59% of TFSAs have been opened at banks, and the majority of investments are in cash.”
Really? Cash investments? That really worries me.
Think about this…
Investing in a tax-free deposit account from the major South African banks will give a return between 6%-8%. But consider that inflation is sitting at 6.1% and not going to stop th... ››› more
Investing in South Africa today is proving to be a challenge for even the best investors. We have to deal with constant attacks to our investment capital.
Scam artists, investment fees, taxes, increasing cost of living as well as political decisions both local and internationally all seem to be aligned to do one thing, eat away at the wealth we are trying so hard to build.
The current situ... ››› more
If you've been acting on the share recommendations the FSPInvest team delivers every month in publications like The South African Investor, Real Wealth and Red Hot Penny Shares, then you're probably making handsome investment returns right now.
Soon, these investment returns will spark interest from SARS, and soon they'll come knocking asking for their share of your profits.
Your broker is... ››› more
In the last three weeks, one question constantly comes up in conversation with my friends, “What do you prefer, unit trusts or ETFs (Exchange Traded Funds)?”
My quick answer is always ETFs. But then I'm bombarded with follow up questions asking, “What's the difference and why do you like them so much?”
So, today, I want to put these questions to rest and explain once and for all, why... ››› more
Have you ever asked yourself, “Will you live as well as your parents did when you retire?”
That's a question thousands of South Africans ask themselves everyday when they reach retirement. The sad truth is, the answer is probably always, “No, I won't”
And, it's no surprise...
You know the statistics that say, only a quarter of South Africans will retire comfortably. The rest wi... ››› more
Rich South Africans pay expensive lawyers, accounts, tax planners and investment managers to ensure they legally pay as little tax as possible.
Now I know what you're thinking: “That's great, but not everyone can afford these expensive advisors.”
Well I've got good news for you: You don't need the help of expensive accountants, tax advisors or investment managers. Because all the tax inc... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.