CAPE TOWN -Just what are credit rating agencies? Credit rating is a process of assessing and scoring the creditworthiness of would-be borrowers, on a standardised basis, to help lenders to decide who to lend to and on what terms. Logically, if you were told that one borrower has a good credit score and another one has, […]
Category: Personal Finance
Stick to proven investment principles
Last year was a year of mixed fortunes for investors, and as such it offered a number of sound investment lessons. 1. Say no to the narrative, not the opportunity It’s easy to get caught up in market narratives. When news flow is good and sentiment positive, investors tend to buy popular securities at any […]
Americans are clueless when it comes to personal finance
Many Americans are sorely lacking in knowledge when it comes to basic financial terms, according to new research. A recent study of 1,000 Americans over the age of 30 found less than half of participants could confidently explain what a 401(k) is. The research examining people’s grasp of financial terminology found many struggled to define […]
Consumer Watch: Good personal finance skills no matter your income
Having good personal finance doesn’t mean you have to make a lot of money. One of the most common complaint is that people feel they cannot save money because they do not earn enough. Though many families are living pay check to pay check, there are some small and big changes you can make to […]
Retirement saving tips for late starters
Despite countless television ads touting the virtues of retirement planning, it seems many people are not getting the message. According to a survey from GOBBankingRates.com, one-third of Americans have nothing saved for retirement. Financial advisors recommend men and women begin saving for retirement as early as possible. The longer people delay opening a retirement account, […]
5 bad money habits of constant broke people
People who are constantly broke tend to portray some kind of bad money habit. These bad money habits are actually the major reasons why some people are constantly broke. How you spend and manage your money every day has a huge significance on how you can build your finance successfully. Here are bad money habits […]
10 money mistakes that will cost you dearly
You might think it takes a lot of luck to achieve financial security and a comfortable lifestyle, but luck is only an opportunity, not an end in itself. Even lottery winners quite often end up broke within a few years. In most circumstances, the state of your finances is the total of your attitude to […]
Make 2018 your year of financial freedom
Are you ready to face up to your financial responsibilities at the beginning of a new year? You probably haven’t given it much thought, but it is likely, if you’re the average South African consumer, that you found 2017 hard going on your finances. Not only did the past year see living costs rise, but […]
Smoothed investment cuts out costly guarantee
Traditionally, smoothed investments have been the domain of the major life assurance companies. But now innovative kid on the block Sygnia has launched one. Smoothed-bonus funds, as they are widely known, are suitable for investors with a low appetite for market volatility and who want to preserve their capital, perhaps because they are nearing retirement. […]
13 questions to ask when buying a business
If you are faced with the opportunity to buy an already established business, there are many things that you need to consider, and questions that need asking, before you sign on the dotted line. This is the view of Mary-Anne Greisdorfer, an associate director in the audit division of BDO Cape Town, who says that, […]
3 Stocks You Can Keep Forever
Let’s get this out of the way up front: Forever is a very long time. It seems almost flippant to use such a time frame when talking about the vagaries of the stock market. Truth be told, no one can truly tell how a company will be doing in one year’s time, let alone five […]
A dummy’s guide to bond investments
It’s very likely that you are indirectly invested in government and corporate bonds, one of the four mainstream asset classes for investors (the others are listed shares, listed property and cash). Retirement funds and endowment policies will certainly have bonds in their portfolios, as will almost any unit trusts that are not purely equity-based. So […]