Off The Beaten Track

Your Money

Trust Funds part 1: What you need to understand about trusts

March 2, 2017 // 0 Comments

What is a trust? It is a legal agreement between someone who owns assets (tangible and intangible) and trustees. Trustees are appointed to administer assets held within the trust for its beneficiaries. There are two types of trusts that can be set up. The first is a testamentary trust, created through a will and which comes into effect when the testator dies. The other, the focus of this week’s column, is an inter vivos trust, which is created while the founder or donor is still alive. [...]

Don’t put off drawing up your will

February 27, 2017 // 0 Comments

We know that death is inevitable, but we distance ourselves from our own mortality to the extent that we put off things like drawing up a will because “we can do it later”. But what if later never comes? You do not need to have millions in assets and investments to have a will. Feuds over things as trivial as cutlery prove that it’s not always about the money. If you are employed or run your own business; are part of a pension fund; have some furniture, a car or any other [...]

Here’s why you should get a tax-free savings account

August 29, 2016 // 0 Comments

Last year the government introduced tax-free savings accounts to boost South Africa’s savings rate. TFSAs are ideal because account holders are exempt from paying capital gains tax , tax on interest and tax on dividends. TFSAs are useful as long-term investments and parents can open them for their children. If you want a TFSA for each of your children you can save up to R30,000 a year per child. A family of five can save up to R150,000 a year. When it comes to the type of investment [...]

How to spot a pyramid scheme

August 24, 2016 // 0 Comments

With pyramid schemes popping up in many shapes, it’s easy for those looking for a quick and easy way to riches to take advantage of unsuspecting individuals, especially in trying economic times. As alleged pyramid schemes – such as MMM Global SA – collapse, it’s important that consumers protect themselves by knowing what a pyramid scheme is, how it operates and how to identify one. In a pyramid scheme, one person, or a group, will recruit a handful of people to the [...]

What you need to consider before buying a car

August 22, 2016 // 0 Comments

To start with, will you buy a new car, or a second-hand one? This is important, because the car’s age will influence your finance application. For instance, Absa does not offer instalment finance for cars older than five years. WesBank is limited to cars less than 20 years old worth at least R30,000 when bought from a private seller. Then you’ll have to decide whether to buy from a dealership or a private seller. A private deal might be cheaper, but you will have to ensure that the [...]