It is important to find our perfect online broker before we open an online trading account. Different brokers service different fields. We might need search all the online brokers to find the best one to service what we need. So what we should pay attention to when we look for a good online broker.
First the commission or the rate they charge when they help you buy and sell securities online. For a small amount of transaction, they normally charge an expensive fix rate. As the transaction amount increases, the transaction rate shows regressive increments. The slide scale may vary between online brokers. It is better to have an idea of our average transaction value and do some cost controlling job. Always compare online brokers and read carefully about contracts. Read the rest of this entry »
A standard rule is that the greater the return you might make on an investment, the greater the risk that you may make little or even lose your shirt. An extreme type of high risk/high return investment is the Lotto. You will probably lose, but if you do hit it you could score a big one. At the other extreme is placing your cash in a safe deposit box. You will be extremely unlikely to lose it but will certainly not make any return on it either. Read the rest of this entry »
People in this business will sell you an investment without ever telling you what level of return they expect it to achieve. The amazing thing is that they succeed in doing so.
Unfortunately you tend of course, to be more interested in the future. You will then be shown an ‘illustrative value’ for your investment. Read the rest of this entry »
Life would be pretty pointless if you didn’t have a few good ones.
Expectations are an important driving force. They motivate many actions. You go to a movie because you expect to enjoy it. You buy a particular house because you expect to live happily there and to be able to afford it. Plans and provisions for the future are dictated by what is expected to happen. No expectations, no preparation, no successful future. Read the rest of this entry »
If you run out of funds before you run out of life you will be in a most unpleasant situation. Are you aware of anyone who will assist you in your old age? Someone who will provide rent money, food, clothing, transport, cover for spiralling medical costs, a little entertainment and a degree of dignity? Read the rest of this entry »
When inflation is our constant companion people often say that there is no point in keeping money. Rather spend it because whatever you buy will cost more next year whereas money in the bank is constantly eroded. There can be some sense in this reasoning. Indeed it would be valid if it were applied only to the stockpiling of essentials or the purchase of items to be resold later at a profit. Unfortunately the argument is generally used as a Justification for almost any kind of expenditure, usually of the entirely non-essential type. Read the rest of this entry »
Up to now you have probably never found it necessary to quantify what a lump of money might buy over a long period. After retirement, life is ruled by that factor. Read this and then take another look at your savings. Read the rest of this entry »
Every retiree’s situation is slightly different from that of others, and there is no simple magic formula that is going to provide the easy answer. Again I stress the importance of consulting an independent professional for advice on exactly what to do with these lump sum proceeds. A few suggestions that you should at least consider include the following: Read the rest of this entry »
Membership of a pension fund is often made a condition of employment. Retirement annuities (RAs), on the other hand, are purchased voluntarily, particularly by people who are self- employed, but are also suitable for employees who feel that their pension will be inadequate when they retire. Generally they are quite right. Read the rest of this entry »
Endowment policies have become a major element in retirement planning for most people and form a large part of all business written by life insurance companies. Read the rest of this entry »
With most longer term investments there are fees on buying, or selling, or both. With cash investments there are usually no fees involved in putting assets in money form. Thus the whole of the investment is working for you from the date of deposit. Any investment with entry or exit fees should be considered as medium to long term. Read the rest of this entry »
As the interest of the public is growing in financial matters, investment in unit trusts is rapidly gaining popularity in this country. The reasons for this are: Read the rest of this entry »
Property trusts are a very much neglected investment area for the average investor. Why this is the case is not exactly clear. While property trusts generally have not risen at the same pace as the other “glamour” sectors on the Johannesburg Stock Exchange, the property trust sector has outpaced the inflation rate by a comfortable margin. Read the rest of this entry »
You can invest in the stock market directly by buying shares yourself. It is also possible to invest indirectly by investing in unit trusts or certain products offered by insurance companies. All direct buying and selling should be done through a stockbroker who will be able to offer advice on which companies are suitable for your investment objectives. Read the rest of this entry »
In deciding any investment strategy the first task is to decide your objective. Shares can be purchased for the following reasons: Read the rest of this entry »
Every investment portfolio should contain an interest in the stock market — the question the average investor has to ask is “Can I do it myself?” For those who like to be heavily involved the share market can be fun, meeting with stockbrokers, discussions with friends, reading balance sheets and going to shareholders’ meetings. Read the rest of this entry »
Unit Trusts and Gold Shares
For those who do not want the problems of storage or management, unit trusts or gold shares can offer another way to have an interest. Unit trusts will endeavor to make profits both on trading gold shares and (hopefully) by capital gain. Obviously this is a speculative investment but free of worry for those who want a bit of gamble without doing too much work themselves. Read the rest of this entry »
There are various ways to invest:
Physical Possession
Gold in South Africa can be obtained by purchasing coins or jewellery. South Africans are prohibited by law from owning gold bullion so the most popular form of owning gold is Krugerrands and to a lesser extent other types of gold coins and medallions. Read the rest of this entry »
This is a popular pastime when the stock market is booming and investors feel that the market will never turn down. However, it is highly speculative due to the difference in nature of property and shares. Property is a stable investment which is not generally subject to sharp falls and rises. On the other hand some shares can rise and fall as much as 80% (or more) in a single year. Read the rest of this entry »
Advisers receive remuneration in two ways: fees for services rendered and commission paid to them on products they recommend. For years there has been a debate about which is best for the investor and there is no clear-cut answer. Read the rest of this entry »
