The INDI is an international company dedicated to making a financial difference to people's lives. For so long the rich have turned richer and the poor have been struggling to survive. We at INDI consider that a person's financial position is immediately equal to the knowledge he/she possesses, and the opportunities a person makes use of in his/her lifetime.
With INDI you don't have to experience much to modify your financial position,
but need to trust that we can assist make a difference to your life,
and your loved ones' future.
HOW DO WE DO THAT?
To participate in our investments you must transformed a shareholder in The INDI Trading Company Limited. Shares in the Company are out in the market at a cost of R1 each.
After purchasing a share, you could lend the Company any amount you pick out.
The INDI Trading Company Ltd of South Africa buys and sells All share Index (ALSI) Futures Contracts identified on the South African Futures Exchange, using your wealth as well as additional income.
We also make trades in FOREX and S&P Futures contracts.
The Best part of it all is that you don't have to do a thing, we do it all for you!
We trade to the Finest of our ability and we do not charge our investors
any transaction fees.
In return for investing your money with INDI, we offer you a variety of investment packages to suite your needs with very handsome returns that range from a guaranteed fixed return of 1 ½ % to 2 ½ % per month for our No Risk Investment Merchandises to approximately ±5% per month for our high Risk unlikely Return Investment Product. Be aware that The unlikely Risk unlikely Return Account does have a fluctuating return on a monthly basis. This means a few months you can increase and a few months you can lose. The other foreign exchange we deal in is US Dollars, GDP, Euro's
Each account or product does have certain criteria involved, love notice periods to withdraw your funds as well as minimum investment amounts. So please read by our investment Goods to find which option will suit your needs Finest.
You can pick out to withdraw or reinvest all or part of your trading earnings or interest. This can be a very convenient way to supplement your monthly income with the funds you have set aside.
The INDI Trading Company Limited offers to purchase and sell All share Index (ALSI) Futures Contracts, numbered on the South African Futures Exchange, using your and other money. We also make Forex trades.
We shall trade, to the Best of our ability, and charge you a quarter of regular realised profits, for our employment. Trading losses are likely, but the Company pledges these will not exceed R4500 per contract under the worst feasible circumstances. You could withdraw portion or all of the end-of-day credit balance on your account at any time at 14 days' notice. Expect, but regrettably we cannot guarantee, an average return of 5% per month, after taking occasional setbacks into account.
Please note that we do have a variety of investment Merchandises in the open, visit our Commodities page for more information
(Please note: The INDI Trading Company Limited levies no administrative charges whatsoever. That means free enquiries and monthly statements by post, on
www.indi.co.za. There is also a newsletter to view which is updated on a monthly foundation.)
Why You Should Invest
Investing has turned increasingly important over the years, as the time to come of social security benefits becomes unknown.
People want to insure their futures, and they experience that if they are depending on Social safety benefits, and in some cases retirement plans, that they could be in for a rude awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future.
You could have been saving wealth in a low interest savings account over the years. Now, you want to learn that money grow at a quicker pace. Perhaps you've inherited wealth or realized a few other type of windfall, and you need a way to make that income grow. Again, investing is the answer.
Investing is also a way of attaining the things that you want, such as a new home, a college education for your children, or expensive 'toys.' Of course, your financial goals will influence what sort of investing you do.
If you want or need to make a lot of income fast, you would be more interested in advanced risk investing, which will give you a bigger return in a shorter amount of time. If you are saving for something in the far off time to come, such as retirement, you would want to make safer investments that grow over a longer period of time.
The overall function in investing is to create wealth and security, over a period of time. It is fundamental to remember that you will not always be able to earn an income. you will finally want to retire.
You also cannot count on the social security system to do what you expect it to do. As we have seen with Enron, you also cannot necessarily rely on your company's retirement plan either. So, again, investing is the key to insuring your own financial time to come, but you must make intelligent investments!
Along the way, you could make a few investing mistakes, however there are big mistakes that you utterly must avoid if you are to be a thriving investor. For example, the biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later. Make your money work for you - yet if all you can spare is $20 a week to invest!
The Finest 100 wealth points ever!
Take these hints to heart and you’ll have a firm foundation for time to come financial well-being.
1. Save 10 cents from every R1 you earn. If you put aside at least 10 percent of your income as part of a long-term savings plan, there is a superb possibility that you will have a financially secure future and be able to attain your financial goals.
2. Put 10 percent of every pay increase towards savings, particularly long-term savings such as a retirement plan. If you are employed and belong to a retirement fund, your contributions will step-up automatically in proportion to your pay rises. This will assist ensure that you stay well ahead of inflation.
3. Use the “Can I sleep?” judgment when making investments. An investment is too high-risk if you are going to lie awake at night worrying about it.
4. Diversify your investments. Do Not invest more than five percent of your assets in a narrow investment (for instance, a specialist unit trust fund such as an emerging company one) or in an unregulated investment. Diversifying your investments will ensure you don’t drop off all if one investment bombs out. Many people who invested all their assets in major scams such as Master bond lost everything, and the same thing can happen in the regulated market if you put all your income into one sector . just analyze how the data technology bubble burst in 2000.
5. Be highly cautious if the returns promised on an investment exceed what is generally available. If they sound too superb to be true, they probably are. It usually means the investment is too ambitious in its claims, too high-risk, or simply a scam.
6. know the difference between effective and nominal interest rates. Normally, banks will quote you a nominal interest pace when lending you money, but a advanced, effective interest rate when you invest money. The nominal interest pace is the easy rate. The effective rate is calculated by compounding the interest earned or charged.
7. Make Sure whether the interest you are being paid is credited monthly, quarterly or annually. Say you invest R10 000 for 10 years. If you acquire interest at 10 percent credited annually, you will get a total return of R25 937. If it is credited monthly, you will have R27 070.
8. How do you decide whether you should invest directly in Stocks? simple. If you haven’t got the time to discover about stock markets, to follow the progress of companies or to track your portfolio, rather invest in unit believe funds and/or life assurance endowment policies that have Shares as their underlying investments.
9. If you do invest immediately in Stocks, your two most fundamental considerations should be ensuring that you have a properly diversified selection of Shares across the stock market sectors to reduce risk, and regularly rebalancing your portfolio. When a stock certificate rises in monetary value, you should study selling some, but not all, of these Shares, so that you make a net profit, but your overall portfolio remains proportionally the same as it was when you started. By doing this, you’ll be able to reap further profits if the share price continues to rise.
10. If an investment product is too complicated to understand, do not go it. It does not imply you are stupid. It simply means that the product supplier and/or financial adviser are trying to baffle you.
11. forever Check the costs of any investment product. a few Products are prohibitively expensive. You should be given a breakdown of the costs in three ways: as a proportion of your investment; as a fixed amount; and as the number by which the costs will reduce your investment at maturity time. Be very cautious if the costs are more than six percent at entry and more than two percent a year thereafter.
12. always Check how much commission is being paid to your financial adviser. a few financial Goods – particularly the provided by so-known as linked investment product providers – come with particularly unlikely costs and commissions. high commissions can be a perverse incentive for advisers to miss-sell.
13. A product selling a range of underlying investment product choices, such as a wide collection of unit believe funds, is often not in your Finest interests and could come at additional cost. Be very cautious if anyone recommends that you invest in a linked investment product with a wide selection of underlying investment choices. Remember that linked investment Products come in many forms and are also given by life assurance organizations. The simpler and cheaper solution may be to invest in a properly diversified unit trust fund, such as an asset allocation fund that offers underlying investments in all the principal asset classes, such as cash, bonds and Stocks.
14. Don’t be afraid to negotiate commissions/fees for financial advice. Most financial Goods allow you to do this. After all, it is your income.
15. If you have a choice, should you pay a fee or commission for financial suggestions? As a general rule, a rate is better for sizable amounts of income and a commission for smaller amounts.
16. If you are a true investor, you invest for the long term and you don’t panic when markets fall. If you want to invest for the short term, you should use a bank term deposit or a wealth market account rather than an investment in the equity markets.
17. It is time in the market and not timing the market that counts. Don’t try to time markets or sectors of markets. Few people have got rich from doing this and most have lost income. The Finest means to get rich is to Take time to select an investment product that has properly diversified underlying investments, and then to stick with it for the long term. Most people make the fundamental error of buying into an investment when it is at the peak of its performance and then selling out when its economic value has dropped.
18. always Make Sure that an investment product and/or company is registered with the Financial services Board (FSB) before investing. If it is not registered and things go incorrect, you will have little recourse, so be super wary. You can telephone the FSB on 0800 110 443 or 0800 202 087 to Check.
19. Charges on life assurance investments (endowments) are proportionally advanced on lower amounts. Check the structure of costs in relation to premiums. You might get that paying just a few rand more every month costs you proportionally less. This will give you a amended return.
20. Investing on a regular foundation is a good plan in volatile markets. If markets rise, your investment improves in value. If markets fall, you get more for your income, and you’ll benefit when markets go up again. This is known as rand-cost averaging.
21. If you are investing a large lump sum, put the money in a wealth market account to start with and phase it into pre-selected investments over a period of time. This is particularly fundamental with equity markets: don’t invest all your money when values are high and drop off out later, when they come down.
22. Don’t be appropriated in by labels. some investment Merchandises style themselves as fulfilling definite needs (for example, “a savings plan for your child”). Banks sometimes offer need-branded Commodities. always Make Sure the underlying investment proposal. There might well be a more suitable generic product with a better-performing underlying investment, such as a life assurance managed portfolio or a unit trust asset allocation fund, which has a short-risk structure but the likely for much amended returns.
23. Don’t become emotionally committed to Shares. If a specific share bombs out for solid rational motive, such as bad management or failure to adapt to new markets, get out. But if the share value is falling as part of a general facet downgrade, there is little rational motive to sell.
24. If you are trading Shares for short-term get, you are not an investor, you’re a gambler. Don’t be surprised when you make a loss.
25. do not go investing in unlisted institutions. These organizations are not properly regulated and are the favorite vehicle of scam artists. If you decide to invest in an unlisted company, make sure you do your homework first and understand all the risks.
26. Never invest in anything where the underlying investments are shrouded in secrecy. Your income is likely to be secreted aside too, Do Not to be seen again. A good instance was Jack Milne’s PSC Guaranteed Growth investment scam. Milne refused to divulge the underlying investments, claiming it would show his competitors how he was getting exceptional returns.
27. Being a contrary investor can make all the difference. As investment market guru Sir John Templeton says: “The time of greatest pessimism in the stock market is the time to purchase; the time of maximum optimism is the time to sell.”
28. Do Not invest on an ad hoc basis. You should have an overall financial plan planned to meet all your financial needs, having into account your investment goals and life assurance needs. Investing in something simply because somebody (and that includes your neighbor or hairdresser) recommends it, is unlikely to assist you achieve your financial targets.
29. When you are advised to invest in something, always do a bit of research of your own. Get a second opinion and use the web.
30. Use comparatively safe investments – such as life assurance smoothed-bonus policies and unit believe prudential or flexible asset allocation funds – as core investments. They may not produce you spectacular performance, but they will provide you with a measure of safety.
31. Investing in a reduced-cost index fund might not provide you top performance, but at least it will not produce you bottom performance. Local and international research has repeatedly shown that very few existing fund managers consistently out-perform the markets. With an index fund, you are likely to do amended than the average fund manager – and at lower cost. Index investments come in many contrary forms, from unit trusts to exchange-traded funds, which are numbered on stock exchanges. You need to understand them before you invest.
32. As a general rule, merely invest when you have no debt. The tax-free return you receive from paying off debt is liable to be greater than any returns (which are likely to be taxed) you receive from an investment. There are exceptions, such as paying into a retirement fund while you have a home loan.
33. Be ready to pay for cracking advice, as you would for any expertise. But make sure you deal with an adequately qualified adviser – preferably one who is a Certified Financial Planner accredited by the Financial Planning Institute. solid advice is worth its weight in gold. You would not go to a barber to have your teeth checked, so why go to somebody for financial advice if that person is not properly qualified?
34. forever have an emergency cash fund. Ideally, the fund should be equal to three months’ income. This way you will not have to cash in investments at an inopportune time or Get out a unlikely-interest loan if you are suddenly landed with a major expense.
35. An investment in a unit trust fund that is always in the greatest 25 percent of performers, even out if it has Do Not come first, is preferable to one that has been ranked first once and languishes in the lower realms of the tables for the rest of the time. Check the consistency of performance tables published every three months in Personal Finance to assist you find funds that perform well consistently.
36. If you are a member of a characterised benefit or defined contribution retirement fund, or you bestow to a retirement annuity, you can deduct your contributions (limited to pre-determined levels) from your taxable income and defer tax until your retirement years. This means you get to earn investment returns on income that would otherwise have gone to the Receiver of Revenue.
37. income paid into a retirement fund or retirement annuity is not counted as being part of your estate, so your creditors cannot claim this wealth if you go bankrupt. This is very valuable if you are involved in a small business or you have provided Personal safety for a loan to a business.
38. At retirement you should analyze exercising your choice to Get as cash up to one-third of your retirement savings from a characterised benefit or defined contribution retirement fund or a retirement annuity. There are two grounds for doing this:
• In the case of retirement funds, you are entitled to either R120 000 or R4 500 a year multiplied by the figure of years you belonged to the fund (whichever is the greater) as a tax-free amount. With retirement annuities, you are entitled to R4 500 multiplied by the figure of years of membership, tax-free.
• The remaining amount will be taxed at your average rate of tax for the year of your retirement and the previous year, rather of at your higher marginal pace of taxation. Invest the tax-free number where it will attract the lowest pace of tax and earn the Best risk-adjusted returns.
39. The earlier you start a retirement annuity, the greater your tax-free benefit at retirement. This is because the tax-free portion is R4 500 multiplied by the figure of years of membership of the fund. You should avoid having too many retirement annuity plans as you might undermine your ability to get the maximum tax-free allowance at retirement.
40. Mind the gap. Very few retirement funds supply enough income to ensure a financially secure retirement, particularly now that most organizations are reducing or discontinuing medical scheme subsidies to retirees. This means you need to have other investments to top up your retirement fund savings. Make sure you Make Sure up on how you are managing to fill “the gap” by regularly having a financial needs analysis with a properly qualified financial adviser.
41. start Planning your retirement at least three to five years before the date on which you are due to retire, so that you understand all your options and are not rushed into any last-minute decisions.
42. Be certain when buying an annuity (pension) with (at least) two-thirds of your retirement fund savings, as you are required to do by law. Living annuities have been widely miss-sold because of their potential to earn advanced profits for the companies selling them and higher commissions for advisers. With a living annuity, you Get the investment risks; with a traditional guaranteed annuity, you don’t, the life assuror does.
43. If you are investing in a living annuity to purchase a pension and you need to draw more than the minimum five percent of the annual economic value, you should be exposing yourself to the risk of not having sufficient income to give you with a financially secure income until you die.
44. Most living annuity suppliers allow you to draw your pension from contrary parts of the underlying investments. This enables you to structure the annuity so you have an income-generating portion and a capital Growing portion. You should use this facility to invest mainly in interest-generating investments for the income portion. This will significantly reduce the risk of undermining your capital.
45. If you use a living annuity to buy a pension, do not invest all the wealth in equities or equity unit trusts. At the absolute greatest, you should have no more than 75 percent invested in equities. The balance should be in more stable interest-earning investments.
46. forever pay the full number owing on your credit card. If you do not, you will be charged a punishing pace of interest from the date of purchase. The so-titled budget account on your credit card is a misnomer, as you pay a unlikely rate of interest.
47. Use a credit card to get 55 days’ interest-free credit by buying at the start of the purchase-and-pay cycle and repaying the debt in full by the due date. This option does not apply to cash withdrawals and petrol purchases, on which you pay punitive interest rates from the time of the transaction.
48. Don’t leave large amounts of income sitting in a underslung-interest bank savings or current account. Rather put the money into a income market account or into your mortgage bond.
49. Pay yourself first. Set up debit orders that channel money into investments as soon after pay day as likely so that you will not “miss” the income.
50. Never use debt on which you have to pay interest to get Goods you consume. You are in effect generating the items far more expensive, and will be able to save less and purchase less in the long term.
51. Borrowing to buy reasonably priced property is a solid thing because you can expect the property to improve in economic value.
52. You should not, as a rule, long? to invest, particularly not in volatile markets, such as stock certificate markets. The exception is property that you intend to hold for at least five years and in which you reside.
53. Keep a good credit record. It might save you thousands of rands, particularly when you want to get? income for big-ticket items such as a home or a vehicle, because the amended your credit record, the lower the interest pace you can expect to pay.
54. The Finest investment you can make is to repay debt. Interest rates in South Africa are high. By paying off debt, you get one of the Best returns in the open, tax-free.
55. accept? wisely. Expensive debt is a quick means to lose income. For example, borrowing against a credit card is far more expensive than borrowing against a home loan. The difference can be more than 10 percent points.
56. If you have a problem meeting your debts, don’t try to hide back. Go and speak to your creditors, particularly your bank, to find a way out of your problem. Don’t use debt consolidators/administrators. They will charge you far more interest and make your problem worse.
57. Beware of plastic. Store cards and credit cards may be convenient, but they are also an easy means of working up debt.
58. Don’t fly now, pay later. It is very depressing to be still paying for a holiday (or any other luxury) five years later, when you want another.
59. If you Get out life assurance or short-term insurance to cover debt or an asset financed with debt, always pay the premiums as they transformed due to avoid paying interest on the premiums as well.
60. Try to repay more on your home loan than the minimal. For example, on a home loan of R100 000 at a mortgage bond rate of 15 percent over 20 years, your standard repayments will be R1 316.79. increase the repayments by R100 and you will reduce your refund period to 14 years and five months, and you will save R88 224.93 in interest repayments.
61. always negotiate your interest rates. Shop about. A one-percent difference can have a significant effect. On a R100 000 mortgage bond over 20 years at 15 percent, you will repay R316 029 in total. At 14 percent, you will repay R298 444 – a saving of R17 584.
62. When mortgage bond interest rates come down, keep your repayments at the same level. You will pay off your bond quicker and save you a whack in interest repayments. Repayments will also not be so difficult to contend with if interest rates rise again.
63. If you Take out a home loan when interest rates are reduced, forever ask you whether you will be able to afford the repayments if interest rates go up. If you are in doubt, Take out a smaller loan.
64. Most mortgage bonds enable you to repay more than your set repayments and to take up? against what you have paid. This is useful not simply to borrow? wealth for other things at short notice, but also to use as a savings account. The effective interest you acquire is much greater and there are no additional costs. Say, for example, you need to put away wealth to pay school fees or provisional tax. “Save” the money in your mortgage bond until you need it, rather than in a reduced-interest bank savings account.
65. Get a pre-approval agreement on a mortgage bond before you begin search for a home. This will give you the benefit of being able to shop about for the Finest rate while you’re not under pressure and the buyer will be more willing to sell to you knowing that the wealth is available.
66. always have a lawyer Make Sure a property deed of sale before you sign up. Also make a deed of sale subject to conditions such as a proper inspection being done, if you suspect building faults, and to raising a mortgage bond, if you need one.
67. A bank valuation of a property is not a guarantee that the building is structurally sound. If you suspect a problem, get a full structural survey before you enter any contractual agreement.
68. Don’t fall prey to what is titled a mortgage bond-linked endowment. With these Products, you are encouraged to Take out a home loan, repay simply the interest, and invest the number that would have repaid the capital. The theory is that, at the end of the period, the investment should be worth more than the capital. With high interest rates and poor investment returns, these are unlikely-risk Products.
69. If you Get out life assurance, always declare any health problem or habit or hobby that might affect your insurability. You might have to pay more in premiums, but at least your dependants will receive the income if and when a claim is made. If you lie, either by omission or commission, your dependants may be left with nothing. The life assurance company is legally entitled to repudiate any claim when incorrect info is provided, even out if it is not associated with the cause of death or disability.
70. Never get too much life assurance against death or disability. The intent of life assurance is to ensure you and your dependants maintain a standard of living, not to enrich dependants in the future. Too much life assurance just means you are paying out more in premiums and costs, and you have to accept a lower standard of living now.
71. always do not go cashing in an investment (endowment/universal) policy before its maturity date. Cashing in is costly. Not merely might you receive less income than you have paid into the investment, but if there is life assurance cover committed to the policy, you might not be able to replace the cover in the future, particularly if you are less healthy.
72. When having out life assurance cover against dying or being disabled, forever establish whether the premiums are guaranteed – and for how long. It is preferable to get a longer term guarantee on your premiums.
73. If you have no option but to surrender a life assurance investment policy, always learn if you cannot get more than the surrender value provided by the life assurance company by trading the policy on the secondhand market.
74. Rather than surrendering a policy, analyze other options, such as generating it paid-up so you can stop paying premiums. You might also be able to Get a loan against the policy, but Check the interest pace; sometimes it is higher than it would be if you used the policy as safety to get a bank loan.
75. If you are concerned about volatile markets, one of the Best investment Commodities you can get is a life assurance smoothed bonus policy that promises your capital and smoothes out the market returns.
76. If you wish the benefits of a life assurance policy to go to somebody in particular, have this on record with the life company by naming the person as the beneficiary of the policy. This has two advantages: You do not pay executor’s fees of up to 3.75 percent with VAT on the number; and the beneficiary receives the money almost instantly, without it being tied up for months or yet years while your estate is finalized. More often than not, your dependants will need the income instantly after your death.
77. If you can afford a hamburger and Coke every day, you can afford life assurance. Life assurance is essential for anyone who has dependants.
78. If you plan to stay single with no dependants, you do not need life assurance against dying, but you do need disability assurance in case you become ill or are injured in an accident.
79. It is not saving if you put wealth back at the start of the month but withdraw it before the end of the month. Life assurance investments are helpful for people who get it difficult to save, because they commit you to a contract for at least five years and cost you dearly if you break the contract.
80. Do not Get out a life assurance investment contract for more than 10 years. You don’t know how your financial point could vary. At the end of the period you can always extend the contract, but if you have to cut it short, there are penalties involved that should learn you getting back less income than you paid in. The primary reason life assurance sales people attempt to get you to Get out longer-term policies is because they receive more commission.
81. If you have dependants, life assurance is more fundamental than investments. Investments Get longer to accumulate to the level that might be required by your dependants, whereas life assurance benefits can immediately meet all the needs if required.
82. As a general rule, you should keep your risk life assurance against death and disability separate from your investments, particularly if the risk assurance is for a long period. The primary justification for this is that, if you land up in financial difficulties, you do not want to lose the risk cover because you have had to stop paying the investment portion. This strategy also gives you more flexibility with your investments.
83. Life assurance against dying or being disabled could only be required for short periods. For instance, you could need cover to provide for the education of children for 10 years or until you have built up sufficient savings. You do not need a 20-year contract.
84. analyze joint life assurance if you have a significant other. It is often cheaper. It turns with the alternatives of paying when the first of the two dies, or when the last collaborator dies, or fully on the death of each partner. Obviously, the premium will be determined by the alternative you buy.
85. Be very wary of credit life assurance. Although it can be essential to ensure debts are paid when you die, it is also open to abuse. often, when you finance, for instance, a motor vehicle, you will be sold life assurance to cover the debt. But many sales people sell you assurance that runs for a longer term than the debt and credit life assurance has an investment element included. Commission, not your financial well-being, motivates sales people.
86. You need to do some estate Thinking, particularly if you are wealthy. Any amount above R1.5 million that is not left to your spouse is subject to estate duty at a pace of 20 percent, and any capital acquire that is not exempt is subject to capital gains tax, as death is considered a capital gains event. (The first R50 000 is exempt when you die.) If you do not have readily available cash to cover these taxes, you need life assurance to ensure there will be no need for a fire sale of other assets.
87. Apart from when you have a home loan, you cannot be forced to Get out short-term insurance with any particular company when you acquire a loan on a fixed or moveable asset. You can be forced to Take out insurance, but you can and should shop about for the cheapest premium.
88. You can reduce the amount you pay in short-term insurance by increasing the excess (the first portion of any claim, which you pay). A advanced excess will impart lower premiums. however, you should keep the excess within affordable limits. better still, build up savings equivalent to any excess you may be required to pay and earn interest on them.
89. When you differentiate address, Make Sure whether your short-term insurance premiums could be reduced. Where you reside can effect the level of your short-term insurance premiums.
90. Most short-term insurance policies have a number of exclusions. For instance, on motor vehicle insurance, you are required to maintain the vehicle properly. For example, if your tires are smooth, your claim will be rejected no matter what the cause of the accident. Be conscious of the exclusions, so that you don’t have a claim refused unexpectedly.
91. Check the economic value of your motor vehicle. One racket perpetrated by insurance companies is to step-up premiums annually, when they should be decreased to Get account of the declining value of your vehicle. When you claim, you will simply be paid the effective value, not the insured economic value.
92. When generating a short-term insurance claim, first find out what effect the claim will have on your no- claim bonus. If the claim (after payment of the excess) is relatively small, it might be better not to claim and keep your no-claim bonus intact. A no-claim bonus can equal as much as a 60 percent reduction on premiums after five years.
93. Use the R10 000 exemption from capital gains tax. Every year you are entitled to claim an exemption of R10 000 against any capital get. Say, for instance, you want to cash in an investment with a capital acquire of R20 000 in November. instead, cash in half in November and half after March 1, the begin of the new tax year.
94. Interest-bearing investments transformed far more attractive when you don’t have to pay tax. For the current tax year, the first R10 000 in interest income is tax exempt if you are under the age of 65, and R15 000 if you are over the age of 65.
95. If you are investing for an income and have exceeded your tax-free interest exemption, analyze cashing in investment capital that you can offset against your R10 000 capital gains tax exemption.
96. Never make a tax decision first when investing. analyze the tax implication last. Many people make the tax decision first and reject what should have been a solid investment.
97. If your spouse is on a lower marginal income tax rate than you, it is Best to transfer interest-earning assets to him/her. Also, remember that each spouse is entitled to the tax-free number of R10 000 under the age of 65 and R15 000 over the age of 65.
98. To qualify for the R1 million capital gains tax exemption on your primary residence, you really have to reside in that property. If you rent out the property for even part of the time, you will have to deduct the period proportionally from the exemption.
99. The benefits of a life assurance policy are not subject to income tax or capital gains tax in your hands. Tax is paid on your behalf by the life assurance company at rates of 30 percent on interest, net rental and foreign dividends, and an effective 7.5 percent on capital gains. So, if your marginal tax rate is greater than 30 percent, you are receiving a tax benefit by investing in a life assurance policy as opposed to a unit believe investment with similar underlying investments.
100. Assets can be transferred between spouses without attracting donations tax. So it can pay to transfer assets on which capital gains tax could transformed due, to Get benefit of lower marginal tax rates and the R10 000 exemption. Remember, 25 percent of a capital acquire (which is not exempt) is included as income for tax purposes. So, the lower your marginal pace, the lower your capital gains tax will be.
some sayings about income
"money for me has only one sound: liberty." --Gabrielle Chanel
"Miss of money is the root of all evil." --George Bernard Shaw
"A quick, justly gained, is amended than thousands secured by stealth, or at the expense of other's rights and interests." --from wealth for the Millions
"It is an elementary and vital courtesy when you are using people's own money against them that you do it with a few grace." --Richard Neely WV Supreme Court
"More people are bribed by their own wealth than anybody else's." --Jonathan Daniels
"Experience, yet, shows that neither a state nor a bank ever have [sic] had the unrestricted power of issuing paper income without abusing that power; in all states, therefore, the issue of paper wealth ought to be under some Check and control; and none seems so proper for that function as that of subjecting the issuers of paper income to the obligation of paying their notes either in gold coin or bullion." --David Ricardo
"We have rights, as individuals, to produce as much of our own wealth as we please to charity; but as members of Congress we have no correct so to appropriate a dollar of public wealth." --David Crockett, Member of Congress, 1827-31, 1832-35
"The way to get things done is to stimulate competition. I do not impart in a sordid, money-getting way, but in the desire to excel." --Charles Schwab
"income is power, & you ought to be reasonably ambitious to have it." --Russell H. Conwell, Temple Univ, 1877
"For the folk-community does not exist on the fictitious economic value of income but on the results of productive labour, which is what gives wealth its value." --Adolf Hitler to Reichstag, 30 Jan 1937, as translated by Norman H. Baynes
"God gave me my income. I consider the power to make income is a gift from God . . . to be developed & used to the Finest of our ability for the bang-up of mankind. Having been endowed with the gift I possess, I think it is my duty to make wealth & still more money & to use the income I make for the cracking of my fellow man according to the dictates of my conscience." --John D. Rockefeller, 1905
"He who tampers with the currency robs labor of its bread." --Daniel Webster, 15 Mar 1837
"At least 25% of the wealth Americans spend on health care is wasted." --Joseph A. Califano, "Billions Blown on Health", New York Times, 12 Apr 1989
"income is like muck, not solid except it be spread." --Francis Bacon, The Essays or Counsels
"All progress is based upon a universal innate desire on the part of every organism to reside beyond its income." --Samuel Butler
"It has beeen said that the romance of money is the root of all evil. The want of income is so rather as truly." --Samuel Butler
"I was portion of that strange race of people aptly described as spending their lives doing things they detest to make money they don't want to get things they don't need to impress people they dislike." --Emile Henry Gauvreay
"I consider that sex is one of the most beautiful, natural, wholesome things that income can buy." --Steve Martin
"wealth can't buy acquaintances. But you can afford a improved class of enemy." --Lord Mancroft
"When a fellow says it ain't the money but the principle of the thing, it's the income." --Kin Hubbard
"All I ask is a possibility to prove that wealth can't make me happy."
"While money can't get happiness, it certainly lets you choose your own configuration of misery."
"While money doesn't get affection, it puts you in a great bargaining point."
"income's only fundamental when you don't have any." --Sting
"income isn't everything. It's just most all." --Nica Clark
"In societies of underslung civilization, there is no wealth." --Herbert Spencer
income can prolong one's life
It's the key to power
"money is the sign of liberty. To curse wealth is to curse liberty--to curse life, which is nothing, if it be not free." --de Gourmont
wealth might be an great thing, for it means power, and it means leisure, it means liberty.
If you would be wealthy, think of saving as well as getting.
The Actuality…
When it’s time for you to go. Don’t leave your family with nothing but bills, and bad debts. throw them something to remember you by. love an investment.
First you work hard for your wealth, and then you let your income work hard for you. believe me it’s the key to financial freedom. Don’t be moneys slave for ever. acquire to spot opportunities, create your own solutions. Do Not Say “I can’t afford it,” rather Tell “How can I afford it.
I would rather ask a million people for R1.00, than request one person for R1 000 000.00.
Because
Everyone can afford R1.00, but not every body can afford
R1 000 000.00. Plant your income in cracking soil. And supply it as much water as you can, by adding to your seed.
And your seed will grow and grow. And after a few time, depending on how much water your gave your seed. It will multiply itself. Then you begin enjoying the seeds of your work.
You can judge a tree by the fruits it bears, cracking soil is hard to find. Don’t let the Indi Trading Company slip you by.
The rich teaches their kids about income, the poor don’t.
Invest in yourself, invest in you children, invest in your happiness
and in financial freedom.
. to freedom
FOREX every day Outlook by Easy-Forex.com
US Existing Home Sales fails to support New Home Sales figure. Japanese CPI provide an early indication for inflationary pressures.
CURRENCY TRADING SUMMARY – 28 may 2007 (00:30GMT)
• U.S. Dollar Trading (USD) remained relatively unchanged against a basket of foreign exchange despite Existent Home Sales disappointing on the back of positive New Home Sales seen the previous session. With markets expecting a figure of 6.14 mio for the month of April, the actual figure was released at 5.99 mio, yet its effect was limited due to an upward revision of the previous month to 6.15 mio. The USD initially lost ground against other majors before investors chose to square positions ahead of the long weekend. In US stock certificate markets the NASDAQ rebounded to increase by 19.27 points (+0.76%) whilst the Dow Jones also gained by 66.15 points (0.49%). Crude oil continued to rise over growing uncertainty in Nigeria and Iran. Oil rose by US$0.93 a barrel to US$65.11. hunting ahead, a slow beginning to the week is supposed with U.S. markets closed for Memorial Day.
• The Euro (EUR) gained moderately on the back of a positive reading in Gfk consumer confidence. The figure for the month of June was anticipated to come in at 6 yet astonished many with a launch of 7.3. Overall the EURUSD traded with a reduced of 1.3411 and a high of 1.3473 before closing the day at 1.3449 in the New York session. A slow begin is also expected out of the EZ with many markets closed for trading.
• The Japanese Yen (JPY) was the biggest mover on Friday as CPI data matched expectations for the month of April, released at -0.1%. Up from the March’s decline of -0.3% lending indications that inflationary pressures are slowly returning. Although the USDJPY knowledge of early losses on the back of inflationary data, the pair moved higher to end the day. Overall, the USDJPY traded with a range of a short 120.85 and a high of 121.77 before closing near day highs at 121.72 in the New York session.
• The Sterling (GBP) was unchanged against the USD on Friday despite GDP data being released slightly higher than expectations. Although GDP (Q1) q/q came in on consensus at 0.7%, the y/y figure was up to 2.9% (Forecast: 2.8%). Overall the GBPUSD traded with a range of a reduced 1.9835 and a unlikely of 1.9880 before closing 1.9846 in the New York session. looking ahead UK will have a market holiday to begin the week on Monday
• The Australian Dollar (AUD) traded in a characterised range once again on Friday, largely attributed to data absence. Overall the AUDUSD traded with a range of a reduced 0.8176 and a unlikely of 0.8218 before closing the day at 0.8218 in the New York session.
• The Canadian Dollar (CAD) reached a fresh 29 ½ year high against the greenback due to advanced oil prices and expectations for a hawkish statement from the Bank of Canada next week. Overall the USDCAD traded with a range of a underslung 1.0778 and a high of 1.0870 before closing the day at 1.0804 in the New York session.
• Gold (XAU) rebounded on Friday reading the previous session’s sharp decline. Gold rose US$2.00 an ounce to US$655.30
TECHNICAL COMMENTARY
Currency Sup 2 Sup 1 Spot Res 1 Res 2
EUR/USD 1.3368 1.3371 1.3450 1.3545 1.3612
USD/JPY 120.15 120.64 121.75 122.20 122.38
GBP/USD 1.9659 1.9677 1.9840 1.9959 2.0000
AUD/USD 0.8150 0.8170 0.8185 0.8273 0.8354
XAU/USD 646.20 652.01 655.90 665.40 675.05
• Euro 1.3450
Initial support at 1.3371 (38.2% retracement of the 1.2865 to 1.3683 advance) succeeded by 1.3368 (Former resistance from Dec 4). Initial resistance is now located at 1.3545 (could 17 unlikely) followed by 1.3612 (could 16 high)
• Yen 121.75
Initial support is located at 120.64 (might 16 low) succeeded by 120.15 (might 16 underslung). Initial resistance is now at 122.20 (Jan 29 reaction high) succeeded by 122.38 (61.8% ret 135.18 to 101.67)
• Pound – 1.9840
Initial support at 1.9677 (may 21 underslung) followed by 1.9659 ((FIFTY% retracement of the 1.9184 to 2.0134 advance)). Initial resistance is now at 1.9959 (61.8% retracement of the 2.0134 to 1.9677 decline) followed by 2.0000 (might 9 unlikely)
• Australian Dollar – 0.8185
Initial support a 0.8170 (may 4 reaction short) accompanied by 0.8150 (Apr 9 short). Initial resistance is now at 0.8273 (could 17 unlikely) followed by 0.8354 (might 14 unlikely)
• Gold – 655.90
Initial support at 655.00 (might 17 low) succeeded by 652.01 (Mar 24 reduced). Initial resistance is now at 665.40 (could 22 high) succeeded by 675.05 (could 14 unlikely)
Forex trading involves substantial risk of loss, and might not be suitable for everyone._
Our Newsletter
Dear Investor 5 March2007
FIXED - INTEREST ACCOUNTS
Our primary activity continues to be All share Index Futures trading which has yielded the reading nett returns for investors over the past 12 months
Dow Average is at last showing signs of weakness, following a frustrating multi-month up-movement.
unlikely RISK - high RETURN NO. 2 ACCOUNTS
We consider the international gold worth passed an important peak of $725 (founded on London PM Fixes) on 12 could 2006, and is now on its means down. We have been waiting many months for this new development, so we feel much more confident now about our investment performance for the period ahead. Our investments supporting interest payments on these accounts are linked to both gold price trading and movements in the Dow Jones Industrial Average.
Mar 2006
3%
could 2006
7%
June 2006
4%
July 2006
Nil
Aug 2006
6%
After a five month "down" period from 19 November 2004 to 12 April 2005, a fresh "up" period is in full swing. At this stage, we expect it to continue indefinitely. We encourage you, the investor, to spread your money equally between the so-titled high Risk - high Return No.2 Accounts and Fixed Interest No. 1 Accounts, for optimum performance.
Yours si
