Financial risk ratios, also known as solvency ratios, are used to determine the long-term financial health of a business by analysing whether a company carries too much debt. And these ratios can come in very handy when looking to invest or review financial situations. The solvency ratio is a key metric that can be used to measure whether a company has sufficient cash flow to meet its long-term commitments. The ratio offers a comprehensive measure of […]
Continue readingMore TagBudgeting tips and tricks for the upcoming tax year
South Africans can expect more changes on the horizon in this upcoming tax year, as the Ministry of Finance attempts to mitigate the financial failings of 2017. After being downgraded to junk status last year, the country is well and truly hanging its head in financial shame, and it is clear that there is a lot of work to do to improve (or simply stabilise) the situation. According to an article published on BusinessTech, the “government […]
Continue readingMore TagShow the love this Valentine’s Day
In recent years, Valentine’s Day has gained the reputation of being a Hallmark holiday that promotes Lindt rather than love. So, before you rush off to the shops to buy a big bunch of flowers or box of chocolates, you may wish to take a moment to reflect on the meaning behind the day and how you can best show your affection. Romance without the rands… The origins of Valentine’s Day remain somewhat mysterious. Its initial […]
Continue readingMore TagHow to avoid the retirement crisis
South Africa is currently in the midst of what is widely referred to as a ‘retirement crisis’, which could intensify if the issue isn’t addressed properly soon. After a period of excellent investment returns that have, up until recently, somewhat masked the fact that retirees in living annuities haven’t saved enough, local retirement fund members have now entered a lower-return environment, which will only exacerbate the problem. Only a small percentage of the population is believed […]
Continue readingMore TagHooray for RAs
Retirement Annuities (RAs) have been around for a long time, and are basically private pension plans that help you to save for retirement. As we near the end of yet another tax year, we move into a period that is often referred to as RA season, which is a good time to weigh up the advantages of this investment product. Over the years, RAs have evolved into much more flexible and affordable investment vehicles than they […]
Continue readingMore TagPrepare for additional tax increases next year
Towards the end of 2017, President Zuma instructed South Africa’s minister of finance, Malusi Gigaba, to resolve economic challenges after Standard & Poor’s lowered both the country’s long-term foreign and local currency debt ratings by one notch on Friday, 24th November. A statement was released about the measures that would need to be taken to trim expenses and increase revenue in order to address the R40-billion deficit identified by the ratings agency and October’s Medium-Term Budget […]
Continue readingMore TagIs a tax-free savings account the best option for you?
Many South Africans have started taking advantage of Tax Free Savings Accounts (TFSAs), which were established by the government as an easy and safe way for citizens to increase their savings. When investing in a TFSA, you won’t be taxed on any growth on your investment — you won’t pay tax on dividends, interest or capital gains tax. And when you consider that the interest offered in a traditional savings account is usually less than the […]
Continue readingMore TagAttainable financial resolutions for 2018
Can you remember what resolutions you made last January? Or for how long you kept them? The trouble with resolutions is that they’re often made half-heartedly, in an annual acknowledgment of our inadequacies and a cursory attempt at self-improvement. Once the hazy days of the holiday season are over and we are faced with the realities of day-to-day life, even the most well-intentioned of us tend to succumb to temptations or old habits far quicker than […]
Continue readingMore TagTread Lightly this Christmas
It’s easy for Christmas to turn into a frenzied flurry of wasteful consumerism, and to find ourselves knee-deep in ripped-up wrapping paper that we discard in a hurry before Christmas lunch. But before you fill black bin bags with gift tags and empty jars of cranberry sauce, pause for a second to think about how you could help the environment this festive period. According to a report compiled by the World Bank in 2016, South Africa […]
Continue readingMore TagWealth tax for national healing?
Saturday, 16th December is an important day in the South African calendar as it marks the Day of Reconciliation. The significance dates back to two events in history. The first of these was in 1838, when the Battle of Blood River took place, and 470 Voortrekkers (who had the advantage of gunpowder) defeated the 10,000-strong Zulu army. This was after the Zulu chief, Dingane, misunderstood the Voortrekker leader, Piet Retief’s, intentions to negotiate, so murdered him […]
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