Personal Finance Newsletter - latest Issue

It is a well-known fact that the government’s debt-to-GDP ratio is going to be around 56% by the end of March 2019. Debt from state-owned enterprises (SOEs) is likely to add another 35% by the end of the month. Total public debt issued is therefore likely to be 91.5% by end-March. This is the highest level that the total public debt-to-GDP ratio has ever been.

Tax-free savings accounts (TFSAs) were introduced in South Africa in 2015. In just four years they have become an integral part of a multitude of investment strategies.

Disputes among those living in close proximity happen. Whether your neighbour is an office building, workshop, nightclub, block of flats, or a home, sources of conflict can easily arise—noise, odours, obstructions, abuse of your property or neglect of theirs—and emotions can run high.

The National Minimum Wage Act 9 of 2018 (NMWA) came into effect on 1 January 2019. It provides for, among others, a national minimum wage (NMW), the establishment of a National Minimum Wage Commission, a review and annual adjustment of the NMW minimum wage, and the provision of an exemption from paying the NMW.

The amended section of the Income Tax Act concerning the foreign employment income exemption comes into effect on 1 March 2020. This so-called ‘expat tax’ has caused concern among South Africans working abroad who currently pay no tax if they meet certain criteria, but from next year, only R1 million of this income will be exempt from tax in SA.

Table 4.4 Personal income tax rates and bracket adjustments

The amendment to Section 10(1)(o) of the Income Tax Act (the so called ‘expat tax’ Section) that will come into effect from 1 March 2020 has generated much comment among industry insiders and the financial media alike. Readers of Tax Breaks, our sister publication, will have seen a number of articles in recent months dealing with issues relating to tax residency, expat tax, double taxation agreements, and the like—evidence that cross border taxation is an issue that concerns many tax payers.

The FIRE (Financial Independence, Retire Early) movement encourages its followers to save a substantial amount of their income and accumulate assets capable of generating enough passive income for them to be able to retire in their thirties or forties.

Many investors ask, “How much money can I make?” before taking an investment position. However, events like the accounting scandal at Steinhoff or business fraud at Theranos—and their subsequent share price collapses—highlight that an investor’s first consideration should rather be, “How much money can I lose?”

Consumers are increasingly under financial pressure, with new car sales figures for February 2019, at 27 000, reflecting a 13.3% decrease from February last year.

South Africa is alive and buzzing with entrepreneurs, due in part to the high unemployment rate driving individuals to take matters into their own hands. This often means starting a business—but as going into business blindly can be daunting, invariably go-getters end up in a sticky red-tape scenario.

On 12 March 2019 construction company Group Five filed for bankruptcy protection and went into business rescue. Its shares were suspended from trading on the JSE.

What is a good balanced portfolio to start with for someone in their 20s?