June 5, 2024

Thrive in Today’s Market: How Business Advisory Services Fuel Growth

In today’s dynamic business environment, simply offering a quality product or service isn’t enough. Success hinges on strategic planning, sound financial management, and the ability to adapt. Business advisory services bridge this gap by providing the expertise you need to navigate challenges, seize opportunities, and achieve sustainable growth. Unlocking financial potential: – Expert guidance: Advisors become an extension of your team, analysing your financial health to identify areas for improvement. They craft strategic plans aligned with your business goals, ensuring your financial resources are allocated effectively. – Data-driven decisions: Budgeting and forecasting become powerful tools for maintaining financial stability and profitability. Understanding […]
March 22, 2024

Why Honesty Is the Best Policy When Dealing with Your Financial Advisor

The foundation of any relationship with a financial advisor is built on trust and transparency. Clients are expected to share intimate details about their financial lives, similar to how one would discuss health issues with a doctor. This level of openness ensures that advisors can provide tailored advice that accurately reflects the client’s financial health and goals. Shared life stages and understanding A unique aspect of the client-advisor relationship is the mutual understanding that can develop, especially when both parties are at similar life stages. This common ground facilitates discussions that are not just transactional but also empathetic, taking into […]
October 19, 2023

Is a maintenance payment a ‘donation’?

Helping someone out may be exempt from donations tax—but as always, the devil is in the detail… Donations tax is one of those strange taxes where people often question its existence.  After all, why would SARS be so mean as to want to tax someone’s generosity?  The main reason is estate duty—or, more specifically, the potential avoidance thereof. In fact, if donations tax did not exist, this would open a massive estate duty loophole.  Since estate duty is levied at 20% of the taxable value of one’s estate exceeding R3.5 million (and at 25% of the portion exceeding R30 million), […]
October 5, 2023

Maximising your dividend income

You could improve your return by selling the share instead of waiting for the dividend payout—but there are caveats. I was recently asked an interesting question about dividends.  The person concerned was curious as to whether—from a tax and return perspective—it is better to take the dividend itself, or sell the share and take the profit prior to the dividend payout. It is therefore important to understand how the declaration and subsequent payment of a dividend impact the share price, all else being equal. The easiest way to explain how this works is through a real-life example—that of thermal coal […]
August 15, 2023

Avoid the long-term implications of skipping a bond repayment

Are you feeling the financial pinch? You’re not alone. Many South Africans are finding it increasingly difficult to meet their credit obligations. The cost of living is on the rise, disposable incomes are shrinking, and servicing debt has become a significant challenge. Homeowners are feeling the strain too, with financial institutions noting a surge in foreclosures. As the economic outlook appears to be in a state of flux, more consumers are struggling to honour their bond repayments and servicing their debt. In such times of financial stress, the thought of defaulting on a bond payment may sneak into the minds […]
August 15, 2023

Tempted to use AI as a personal finance assistant? limitations and risk factors to consider

Artificial Intelligence (AI) has revolutionised numerous industries, including personal finance. With AI chatbots providing real-time, human-like responses to queries, one might be tempted to fully entrust their financial management to these digital assistants. However, while AI offers undeniable benefits, it’s essential to understand its limitations, particularly when dealing with sensitive areas such as personal finance. Make sure you consider the potential pitfalls of using AI as a personal finance assistant. AI chatbots like ChatGPT are trained on a plethora of data sources such as news articles, books, and social media. This extensive knowledge base allows them to provide advice on […]
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