Allan Gray cut their client fees?

What an exciting bit of news for a change.  Just when everything else is going up, Allan Gray announce that as of 8 April 2013:

"Allan Gray will use the total aggregated balance across all local platform investment accounts held in a client’s name to determine the client’s annual administration fee. "

What this means is that as an Allan Gray client you will be charged a lower (That's right lower) annual administration fee if you have more than one local platform investment account in your name (i.e. under your individual investor number), and the total aggregated balance across your local platform investment accounts exceeds R 1,500,000.00

There are no fees on Allan Gray Funds, only on third party funds and the fee on the majority of them are 0.10% p.a. after the rebate is taken into account.

Once the total amount invested is in excess of R 2,500,000.00, you are actually paid rather than charge a fee! 

Now that is great news.  Thank you Globafundi for this good news snippet.

Investec and getting a home loan!

Investec do home loans

Well the buzz is on that Investec are running home loan campaigns with the two top Mortgage originator companies in South Africa, namely Betterbond  (and their agents)and Ooba (and their agents) and this has generated some excitement into an otherwise lackluster mortgage market.

So what do you need to qualify for this private Banking service and is it for everyone.  the answer is no, it is niche market and the criteria is fairly rigid.

We know that the products on offer are simply put:

1. From cradle to grave for specifically targeted professionals.
2. Employed folk who earn seriously good salaries, above R 800,000 per annum and working for hot companies.
3. Self-employed professionals with a degree in specific areas with  R 800,000 and above personal annual take home salary.
4. Self employed, non professionals who need some seriously unencumbered assets.
5. Solid and liquid asset based owners and also those with great share portfolios.

Sp from what we understand so far is that these folk above who fit into this mold would be able to get excellent deals up to 100% loan to value with interest rates varying between -1% to prime.

So if your favorite mortgage originator is part of the above groups, ask them to see if you qualify - this could be your best deal of 2013.

Unit Trusts and The DIY Investor

Firstly - If you're looking for GREAT investment companies I would suggest:

http://www.coronation.com/

http://bassettoinvestments.co.za/

Perhaps one of the saddest things that happen in the world of personal finance is when investors fail to invest with sufficient risk to achieve inflation-beating returns. It is a mistake often made by DIY investors who neglect to get advice and end up investing in the lowest risk investments because they are too scared to make a wrong decision. Where will you get the best return on your investments – shares, unit trusts, property or something else?

The result is that when they do wake up and realise that they are not keeping up with inflation, they make a knee-jerk decision in an attempt to play catch-up. That’s when things tend to really go wrong.

Procrastination is a thief of investment returns. Decide on your needs and goals early on, know your risk tolerances and write them down. Next make a plan with or without input from a financial adviser – but how would negative returns along the way affect this plan? What are the odds of some better than expected years? What is the greatest loss you could sustain without seriously negatively affecting your lifestyle?

The key here is that it is all about planning your finances first, then selecting the investments and their mix – thereafter monitoring them along the way to support that plan.

Yes, good returns are important, but good, sustained diversified, tax-efficient investment returns, selected to achieve your planned objectives and deal with vigorously changing market environments are even better, and if your need is to plan for retirement or education for your children or a wedding for a daughter you will have some key dates already in your mind.

This is one way that you will know how long your investment should be – it is no use committing to a long-term investment strategy if you have a short time frame until you need the money.

How long you have to get your required investments returns affects what mix of investments you choose.

Investment waters are still murky – ask an expert to invest your money. Remember that an investment portfolio is usually divided among the four assets classes – shares, shares in notarised property companies, unit trusts and cash.

Make sure your Tech is Covered

The widespread use of smartphones and tablets has now become quite commonplace. Many individuals own a tablet with more and more using their tablets and smartphones to buy books, music and airline tickets or for online banking.

Smart technology has many benefits including being user-friendly for older users. Insurance companies have however seen a marked increase in claims for these devices and the claims are mostly for theft and occasional damage.

Here to insure your device

A standard household policy normally covers your tablet against theft. The drawback is that these devices are portable so they are not covered when taken out of the home. If you are looking to cover for both inside and away from your home you have to insure your device under the all-risk category of your policy.

You will need to check if your device is covered under your unspecified all-risk insurance and even though you think your device is covered insurers usually require these items to be specified otherwise they won’t pay you out.

Specified Cover

If you specify the device it should be insured at the replacement value as the insurer will replace it with a new one or pay you out the full replacement value when you claim.

Send your broker or your insurance company all serial numbers and proof of purchase or valuations as proof of the price of the item and remember to keep copies. Inform your insurer if the device was bought overseas as some of these devices might not be available locally. In most instances the product will be replaced with either the same or similar product.

Take note that cellphone claims are often rejected if the phone is blacklisted or if you cannot provide an international mobile equipment number.

Separate Your Business Account From Your Personal Accounts

If you have just started a business and you have not separated your personal and business finances it could spell disaster.

One of the very first things anyone should do when opening up a business regardless what kind of business it is or what size the business is,  you need to draw up a business plan and to open up a separate account as it would soon become almost impossible the differentiate between the two.

Here are some reasons why this is important:

• Opening up separate accounts is especially important if you have a business partner.
• There should be no confusion right from the start – and if you don’t make provision for this you and your partner will soon be taking strain.

There are many advantages when you have a separate business account:

• It is easier to manage the cash flow of the business.
• You will be able to see what is going in and out of the account at a glance.
• Bank and financial charges and expenses are processed through one account making it simpler to keep accurate records.
• If you have separate accounts, the temptation is not there all the time to use the profits of the business for your own personal use.
• Your tax returns are easier to do if you have separate accounts.
• You will come across as being more professional with a separate business account.

As part of their account services banks also usually offer the services of a specialist who’s on hand to advise you, irrespective of how big or how small your business is.