April 22, 2024
Limited access, compulsory preservation Is the proposed two-pot retirement system ‘stirring the pot’ in the retirement fund industry? THE DRAFT tax legislation released by National Treasury on 29 July 2022 contains details of the much anticipated two-pot retirement system. The proposed changes are quite far-reaching—although there will also be criticism that the changes do not go far enough. The intention is for the changes to address the following two concerns: The inability of households in financial distress to access their retirement savings prior to withdrawal or retirement; The failure to preserve funds for retirement, in those instances where members withdraw […]
April 22, 2024
It’s not only your retirement fund that may pay out when you decide to call it a day. Some time ago I wrote a series of articles dealing with the various payments that an employee might receive when leaving an employer. However, while those articles dealt mostly with what went wrong between the former employer and SARS, this article covers the employee tax treatment of lump sum amounts that are paid by an employer upon termination of employment. While the list is not exhaustive, these are the typical payments that would be over and above those that one may receive […]
April 22, 2024
When someone says influencer, freelance designer, writer, or content creator (collectively referred to as a creative freelancer), do you think VAT? Probably not—and you’re not alone. Many creative freelancers don’t consider taxes in their creative pursuits. It’s not a topic that readily comes to mind when you’re brainstorming ideas or putting the finishing touches on a project—but the truth is, taxes can’t be overlooked. One of the unique aspects of freelancing is the autonomy it provides. You have the freedom to choose your projects, set your working hours, and define your rates. This is the dream, right? However, with great […]
April 22, 2024
Securing a loan is a common approach for financing various personal and business needs in South Africa, from purchasing property to covering unexpected expenses. However, the decision to borrow money requires careful thought and planning. Here are essential factors to consider before you commit to a loan. Assess your financial situation: Evaluate your needs and repayment ability The first step is to identify why you need the loan and how much you need to borrow. It’s equally critical to assess your ability to repay the loan. Review your monthly income, expenses, and any existing debts to ensure you can comfortably […]
April 22, 2024
In South Africa, having medical aid is a critical step towards ensuring your health and well-being, but it’s equally essential to maximise the value of your investment. With rising healthcare costs and a multitude of medical aid options available, understanding how to get the most out of your medical aid is essential. In this article, we’ll delve into key strategies to help you maximise your medical aid’s value while also shedding light on important considerations such as the difference between medical schemes and health insurance, and your prescribed minimum benefits (PMBs). Choose the right plan Selecting the most suitable medical […]
March 22, 2024
In 2024, corporate leaders in South Africa and around the world are facing more legal challenges than ever before. As the business environment becomes more complex, directors and senior officials are finding themselves at a heightened risk of litigation across a variety of fronts. Factors increasing legal risks for corporate leaders The business world is evolving rapidly, with several factors contributing to the increased legal jeopardy for directors and senior officials. These include: Economic and geopolitical instability: Economic and geopolitical instability places the global economy under significant strain, with inflation hitting highs not seen in a decade and the cost […]
March 22, 2024
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 […]
March 22, 2024
Better-managed PPPs can help South Africa avoid prescribed assets. South Africa may very well be at the brink of a new era, where a greater focus on public private partnerships (PPPs) can help to address the country’s multiple challenges. The ongoing energy crisis, a deteriorating and unreliable logistics system, failing infrastructure, and climate risks—solutions to these challenges require the technical and financial support of the private sector. With the state’s plans to launch unique infrastructure instruments, driving private sector participation may not necessitate prescribed assets legislation. This was the sentiment following the reforms that Finance Minister Enoch Godongwana alluded to […]
March 22, 2024
Retirement planning is absolutely key to your financial well-being, but let’s face it, as those golden years inch closer, a lot of us start to worry if what we’ve saved up is really going to cut it. Sure, sticking to the tried-and-true savings plans is essential, but why not think outside the box a little? There are some pretty smart, yet less traditional ways to beef up your retirement savings without taking on too much risk. Let’s explore three creative strategies you might want to consider: Leverage your annual leave Strategic use of leave days: In the corporate world, senior employees […]