Mine is in line with Skoobuza - Opportunity cost - Interest lost on R100k - Benefits - Free banking (just some fees on forex transaction) - I spend about 20k on my credit card. Make up most of my points on FNB Chanel Island accounts ($ and Pound accounts - Also zero cost if you keep to the minimums)
Bank fees in total = R210, I pay my CC clean so I don't pay any interest thanks to the 55 days interest free period, I don't spend a fortune, I spend as much as I always did, I did a rough calculation the other day and taking opportunity costs and everything into account I am still making R500+- profit
Doing the same, it's when you read more and more articles like this that you realise it is the way to go! Sure 10% of active managers out-perform the index (before factoring in fees), it's probably more around 5% once you allow for their fees. How is the average person let alone financial adviser going to pick the 5% when it is never a consistent 5% and everyone claims they can outperform the index?
Agree with PJJ & Gemini-I bank smart and all opportunity costs taken into account. Level 5 every month-Avg R1200 ebucks every month + free RMB banking@ R470pm = R1670 gain. Loss in interest in maintaining R100k balance@7% R580pm, hence net gain=+-R1000pm plus all perks of private banking. I do not have credit products. Wife is a secondary card holder(no fee) and all spend gets channeled via my account.Monthly spend is nothing out of the ordinary.
Paragraph 16 states "...with its reliance on coal-fired power stations, it’s not governmentally friendly either...."
If even something like this can slip by, how accurate is any of your other "facts"???
As the great Charles D Ellis (Winning the loser's game author) said at a Satrix/CFA conference last week:
"no one likes to be average.... but if you invest in the index, you will perform in the top quartile over the long term".
Are you direct offshore? Or via asset swap? If direct, when we die, are your investments treated as part of your local estate (i.e no foreign tax issues and foreign executors ans foreign will issues).
Do they have good service, lets say i have questions or do a switch? Or need an old tax certificate? Or need to update my beneficiaries etc etc
If you reply positive on all of these then i unknowingly went the more expensive route on LISP...
>PJJ & Gemini. What does it cost you each month in fees and interest and what is the return in bucks? You also have to spend a fortune on your card, so include the monthly cost of the card too in the calculation.
And just yesterday Hanekom the turncoat, has waxing away about the national parks being the jewel of our tourism and had to be looked after to promote tourism.
classic ANC move, left hand not knowing what the right is up to.
They purged all of the organisational knowledge in the SOE's with their rapid seizing of control in mid 90's.
Anyone who has ever read a management textbook, would shudder at the thought of losing all the best technocrats in government in less than 5 years.
ANC set the bar back to zero and had to learn from doing, which can work at a blue collar level, but in infinitely complex organisations (infinitely complex to any one individual, thus we need boards of multi disciplinary professionals to run them, not one smart ol chap) this cannot and clearly did not work.
Those who held the reigns initially had the benefit of a small/limited handover, but then had to manage a bunch of newly em-placed incompetents which burnt them out and they left, you then had new hands everywhere without the requisite experience. I personally feel the organisational decline and incompetent organisational culture is now so firmly entrenched, that when they believe they are delivering on an exceptional basis, its still an absolute fail against what the benchmark should be... Roll on idiocracy...
It would be great if a tax expert reader could do a Q&A on exactly how the foreign tax credit works in a typical mix of:
SA business income
SA interest and dividend income base
Foreign interest income not subject to withholding
Significant foreign dividend income in US subject to 15% withholding
SA retirement annuity
SA medical deductions
I can find no clear rule that works out the sequence of what can be offset against what, or how the carry forward of disallowed foreign tax credits is traced and re-applied in future periods.
I have asked a tax partner, we looked through four examples and none of the four made sense or were consistent.
How ironic. This ANC Government claims to be pro-poor yet, after a good start in the late 1990s, absolutely EVERYTHING that it now does is anti-poor: Anti-Investment, anti-growth and anti-employment:
Uncertain property/asset rights, excessive personal and corporate taxation, laughably capricious “twin peaks” regulation, administered prices, minimum wages, inscrutable apartheid-era forex controls, derisory mining, financial and other “charters”, oppressive labour laws - all over-layed by an almost complete break down in law and order, theft, corruption and state capture.
No wonder the poor are getting poorer.
We read these stories every day and NOTHING happens...
So whats the point in writing them?
It’s all a charade.
Going through the motions.
Discussing it at the weekend braai.
Shaking our heads.
And then moving on with our lives knowing that nothing is going to happen...except taxes will go up
And when someone is arrested the tax payer spends years helping defend these people. After all they can afford the best lawyers.
If I were a journalist I would start to wonder why I am writing all these stories. Is it just to depress us?
Good article. It's actually around 10.5% pa, if interest is taken annually, compounding to 13% effective after 5 years. But certainly misleading advertising.
Nevertheless, after investigating myself over the past few days and looking at the actual rates, I'll still be putting some money in there later today. And sorting out the CGT on the old investments next year.
As you say, Patrick, it's still a great rate. So are their 2 year and 18 month rates. Would just be nice if they were honest and open about the realities of the numbers, so non-financial people could compare options properly. Would be wonderful if all other banks would do the same.
I agree 100 % . I would think that one should value your SA assets , which typically would be your home , business and maybe other investment properties ,and local shares or unit trust investments . Then add up your off shore assets or global unit trust investments . We live in Africa , a third world continent , and with our government track record SA will slowly ,over time , slide to be just another African third world country .
With this scenario in mind , at least 50% of your total assets , should not be invested in Africa . Very few people i know have , or objectively try, to reach such a level of off shore exposure . But it is time to accept that our African growth rates are simply not going to keep apace with the USA or other developed markets .
Dear ANC, even though ESCOM is not in the private sector, the reality is that you will have to reduce staff numbers and overtime. International financial institutions do not care about your socialist 'political' agenda. They want loans to be repaid.
The alternative is ZIMBABWE..!
I have a problem with the definition of recession. Two consecutive negative quarter is defined as recession, which I have no problem with in a normal country with stable population. On the other hand in SA with the population growth of 1.5% any GDP growth below this figure actually indicates negative per capita GDP growth, meaning the average person is getting poorer, but according to the definition as long as the growth is above 0% there is no recession. On the other hand countries with negative population growth, like the Baltic states, a 0.1% decline in GDP actually means increased per capita GDP, despite this they would officially be in recession. Where is the logic in this?
At what stage does the ANC actually put up its hands and acknowledge that it is corrupt from top to bottom and that it is responsible for this very sad state of affairs?
No inward investment should take place until issues like this have been addressed and corruption rooted out with those responsible paying a very heavy price.
As most home owners with a bond are paying around 10.5% interest, the best and safest way to invest spare cash is into your access bond. That will compound tax free, be flexible in terms of the interest rate which will surely increase and be readily accessible. No brainer really.
The first signs that the ship has been steered clear of the rocks will be the breakup of Eskom and the sale of SAA. The problem is that the list of failing SOE's and bankrupt municipalities are growing faster than the list of interested buyers. We also have to consider the fact that the politically connected steal all funds before it can be used to benefit the economy.
These guys don't waste time to break in at a bank, the board and employees at VBS simply stole their own bank! They distributed the loot among themselves, that is why is is called a "mutual bank".
How anybody can still support the ANC or the EFF is simply beyond me. Only criminals support criminal organizations. The ANC will have to adopt the economic policy of the opposition before the IMF will bail them out. The best option will be for South Africans to bail themselves out by electing a coalition of the DA, FF+, ACDP, UDM, Cope and IFP into power. A local solution for local problems.
It took millions of years of plate tectonics to move Venezuela away from Africa, but the ANC will turn South Africa into Venezuela in no time.
"The management of VBS are the best examples of black excellence". The EFF said it when they accused the Reserve Bank of being racist for acting against VBS.
What does it say about the EFF when they protect criminals who steal from poor people? But then again, that is typical of all socialists.
Do you pay for referrals? You can speak to this guy - Floyd Shivambu - he recently robbed a bank with the help of his brother. A while ago he was a stern believer in socialism, but after this EFF-style BEE project, he became a capitalist in no time. Once empowered- always empowered they say.
I don't understand why people are surprised that the EFF shared in the looting of VBS. The EFF merely executed their stated policy of expropriation without compensation! They are executing the mandate they received from their ignorant supporters. Individuals and institutions that have funds to invest in a bank account are capitalists right? They expropriated the assets of the capitalists class they hate so much.
Never mind the fact that these funds were the life savings of poor black people. The EFF promises to steal from white people, but in the mean time they steal from black people.