The Best 100 Money Tips Ever

Category: Finance.

The INDI Trading Company Limited.

Indian recipes www. visatorsgalore. com. Investing. The INDI is an international company dedicated to making a financial difference to people s lives. We at INDI believe that a person s financial status is directly equal to the knowledge he/ she possesses, and the opportunities a person makes use of in his/ her lifetime. For so long the rich have become richer and the poor have been struggling to survive. With INDI you don t have to know much to change your financial status, but need to trust that we can help make a difference to your life, and your loved ones future. To participate in our investments you must become a shareholder in The INDI Trading Company Limited.

HOW DO WE DO THAT? Shares in the Company are available at a cost of R1 each. The INDI Trading Company Ltd of South Africa buys and sells All Share Index( ALSI) Futures Contracts listed on the South African Futures Exchange, using your money as well as additional money. After purchasing a share, you may lend the Company any amount you choose. We also make trades in FOREX and S& P Futures contracts. We trade to the best of our ability and we do not charge our investors. any transaction fees.

The best part of it all is that you don t have to do a thing, we do it all for you! 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 �% to 2 �% per month for our No Risk Investment Products to approximately� 5% per month for our High Risk High Return Investment Product. This means some months you can gain and some months you can lose. Be aware that The High Risk High Return Account does have a fluctuating return on a monthly basis. The other currencies we deal in is US Dollars, Euro, GDP s. So please read through our investment products to see which option will suit your needs best. Each account or product does have certain criteria involved, like notice periods to withdraw your funds as well as minimum investment amounts.

You can choose to withdraw or reinvest all or part of your trading profit or interest. The INDI Trading Company Limited offers to buy and sell All Share Index( ALSI) Futures Contracts, listed on the South African Futures Exchange, using your and other money. This can be a very convenient way to supplement your monthly income with the funds you have set aside. We also make Forex trades. Trading losses are possible, but the Company guarantees these will not exceed R4500 per contract under the worst possible circumstances. We shall trade, to the best of our ability, and charge you a quarter of daily realised profits, for our services. You may withdraw part or all of the end- of- day credit balance on your account at any time at 14 days notice.

Please note that we do have a variety of investment products available, visit our products page for more information. (Please note: The INDI Trading Company Limited levies no administrative charges whatsoever. Expect, but regrettably we cannot guarantee, an average return of 5% per month, after taking occasional setbacks into account. That means free enquiries and monthly statements by post, on www. indi. co. za. Investing has become increasingly important over the years, as the future of social security benefits becomes unknown. There is also a newsletter to view which is updated on a monthly basis. ) Why You Should Invest. People want to insure their futures, and they know that if they are depending on Social Security benefits, and in some cases retirement plans, that they may be in for a rude awakening when they no longer have the ability to earn a steady income. You may have been saving money in a low interest savings account over the years.

Investing is the answer to the unknowns of the future. Now, you want to see that money grow at a faster pace. Again, investing is the answer. Perhaps you ve inherited money or realized some other type of windfall, and you need a way to make that money grow. 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 determine what type of investing you do. If you are saving for something in the far off future, you would want, such as retirement to make safer investments that grow over a longer period of time. If you want or need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time.

The overall purpose in investing is to create wealth and security, over a period of time. You also cannot count on the social security system to do what you expect it to do. It is important to remember that you will not always be able to earn an income. you will eventually want to retire. As we have seen with Enron, you also cannot necessarily depend on your company s retirement plan either. Along the way, you may make a few investing mistakes, however there are big mistakes that you absolutely must avoid if you are to be a successful investor. So, again, investing is the key to insuring your own financial future, but you must make smart investments!

For instance, the biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later. The best 100 money tips ever! Make your money work for you- even if all you can spare is$ 20 a week to invest! Take these tips to heart and you ll have a solid foundation for future financial well- being. If you put away at least 10 percent of your income as part of a long- term savings plan, there is a good chance that you will have a financially secure future and be able to attain your financial goals. Save 10 cents from every R1 you earn.

Put 10 percent of every pay increase towards savings, particularly long- term savings such as a retirement plan. This will help ensure that you stay well ahead of inflation. If you are employed and belong to a retirement fund, your contributions will increase automatically in proportion to your pay rises. Use the" Can I sleep? " judgment when making investments. Diversify your investments. An investment is too risky if you are going to lie awake at night worrying about it.

Never invest more than five percent of your assets in a narrow investment( for example, a specialist unit trust fund such as an emerging company one) or in an unregulated investment. 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 money into one sector. just consider how the information technology bubble burst in 200 Be extremely cautious if the returns promised on an investment exceed what is generally available. Diversifying your investments will ensure you don t lose everything if one investment bombs out. If they sound too good to be true, they probably are. Know the difference between effective and nominal interest rates. It usually means the investment is too ambitious in its claims, or simply a, too risky scam. Normally, banks will quote you a nominal interest rate when lending you money, effective interest rate, but a higher when you invest money.

The effective rate is calculated by compounding the interest earned or charged. The nominal interest rate is the simple rate. Check whether the interest you are being paid is credited monthly, quarterly or annually. If you receive interest at 10 percent credited annually, you will get a total return of R25 93If it is credited monthly, you will receive R27 07 How do you decide whether you should invest directly in shares? Say you invest R10 000 for 10 years. Simple.

If you do invest directly in shares, your two most important 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. If you haven t got the time to learn about stock markets, to follow the progress of companies or to track your portfolio, rather invest in unit trust funds and/ or life assurance endowment policies that have shares as their underlying investments. When a share rises in price, you should consider selling some, of these shares, but not all, so that you make a profit, but your overall portfolio remains proportionally the same as it was when you started. It does not mean you are stupid. By doing this, you ll be able to reap further profits if the share price continues to rise. 1If an investment product is too complicated to understand, avoid it. It simply means that the product provider and/ or financial adviser are trying to baffle you. 1Always check the costs of any investment product. You should be given a breakdown of the costs in three ways: as a percentage of your investment.

Some products are prohibitively expensive. As a fixed amount. Be very careful if the costs are more than six percent at entry and more than two percent a year thereafter. 1Always check how much commission is being paid to your financial adviser. And as the amount by which the costs will reduce your investment at maturity date. Some financial products- particularly those offered by so- called linked investment product providers- come with particularly high costs and commissions. Be very cautious if anyone recommends that you invest in a linked investment product with a wide selection of underlying investment choices.

High commissions can be a perverse incentive for advisers to miss- sell. 1A product offering a range of underlying investment product choices, such as a wide collection of unit trust funds, is often not in your best interests and may come at additional cost. Remember that linked investment products come in many forms and are also offered by life assurance companies. Most financial products allow you to do this. 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 main asset classes, bonds and shares, such as cash. 1Don t be afraid to negotiate commissions/ fees for financial advice. After all, it is your money. 1If you have a choice, should you pay a fee or commission for financial advice? If you want to invest for the short term, you should use a bank term deposit or a money market account rather than an investment in the equity markets. 1It is time in the market and not timing the market that counts.

As a general rule, a fee is better for large amounts of money and a commission for smaller amounts. 1If you are a true investor, you invest for the long term and you don t panic when markets fall. Don t try to time markets or sectors of markets. The best way 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. Few people have got rich from doing this and most have lost money. 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 value has dropped. 1Always check that an investment product and/ or company is registered with the Financial Services Board( FSB) before investing. You can telephone the FSB on 0800 110 443 or 0800 202 087 to check. 1Charges on life assurance investments( endowments) are proportionally higher on lower amounts.

If it is not registered and things go wrong, you will have little recourse, so be extremely wary. Check the structure of costs in relation to premiums. This will give you a better return. 2Investing on a regular basis is a good strategy in volatile markets. You might find that paying just a few rand more every month costs you proportionally less. If markets rise, your investment improves in value. This is known as rand- cost averaging. 2If you are investing a large lump sum, put the money in a money market account to start with and phase it into pre- selected investments over a period of time.

If markets fall, you get more for your money, and you ll benefit when markets go up again. This is particularly important with equity markets: don t invest all your money when prices are high and lose out later, when they come down. 2Don t be taken in by labels. Banks often offer need- branded products. Some investment products style themselves as fulfilling certain needs( for example, "a savings plan for your child" ). Always check the underlying investment proposal. If a particular share bombs out for good reason, such as bad management or failure to adapt to new markets, get out.

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 low- risk structure but the potential for much better returns. 2Don t become emotionally attached to shares. But if the share value is falling as part of a general sector downgrade, there is little reason to sell. 2If you are trading shares for short- term gain, you are not an investor, you re a gambler. These companies are not properly regulated and are the favorite vehicle of scam artists. Don t be surprised when you make a loss. 2Avoid investing in unlisted companies. If you decide to invest in an unlisted company, make sure you do your homework first and understand all the risks. 2Never invest in anything where the underlying investments are shrouded in secrecy. A good example was Jack Milne s PSC Guaranteed Growth investment scam.

Your money is likely to be secreted away too, never to be seen again. Milne refused to divulge the underlying investments, claiming it would show his competitors how he was getting exceptional returns. 2Being a contrary investor can make all the difference. The time of maximum optimism is the time to sell. " 2Never invest on an ad hoc basis. As investment market guru Sir John Templeton says: "The time of maximum pessimism in the stock market is the time to buy. You should have an overall financial plan designed to meet all your financial needs, taking into account your investment goals and life assurance needs. Get a second opinion and use the internet. 3Use comparatively safe investments- such as life assurance smoothed- bonus policies and unit trust prudential or flexible asset allocation funds- as core investments.

Investing in something simply because someone( and that includes your neighbor or hairdresser) recommends it, is unlikely to help you achieve your financial targets. 2When you are advised to invest in something, always do a bit of research of your own. They may not give you spectacular performance, but they will provide you with a measure of security. 3Investing in a low- cost index fund may not give you top performance, but at least it will not give you bottom performance. With an index fund, you are likely to do better than the average fund manager- and at lower cost. Local and international research has repeatedly shown that very few active fund managers consistently out- perform the markets. Index investments come in many different forms, from unit trusts to exchange- traded funds, which are listed on stock exchanges. The tax- free return you receive from paying off debt is likely to be greater than any returns( which are likely to be taxed) you receive from an investment.

You need to understand them before you invest. 3As a general rule, only invest when you have no debt. There are exceptions, such as paying into a retirement fund while you have a home loan. 3Be prepared to pay for good advice, as you would for any expertise. Good advice is worth its weight in gold. But make sure you deal with an adequately qualified adviser- preferably one who is a Certified Financial Planner accredited by the Financial Planning Institute. You would not go to a barber to have your teeth checked, so why go to someone for financial advice if that person is not properly qualified? 3Always have an emergency cash fund. This way you will not have to cash in investments at an inopportune time or take out a high- interest loan if you are suddenly landed with a major expense. 3An investment in a unit trust fund that is always in the top 25 percent of performers, even if it has never 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. Ideally, the fund should be equal to three months income.

Check the consistency of performance tables published every three months in Personal Finance to help you find funds that perform well consistently. 3If you are a member of a defined benefit or defined contribution retirement fund, or you contribute 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 is very useful if you are involved in a small business or you have provided personal security for a loan to a business. 3At retirement you should consider exercising your option to take as cash up to one- third of your retirement savings from a defined benefit or defined contribution retirement fund or a retirement annuity. This way you get to earn investment returns on money that would otherwise have gone to the Receiver of Revenue. 3Money paid into a retirement fund or retirement annuity is not counted as being part of your estate, so your creditors cannot claim this money if you go bankrupt. There are two reasons for doing this: In the case of retirement funds, you are entitled to either R120 000 or R4 500 a year multiplied by the number of years you belonged to the fund( whichever is the greater) as a tax- free amount. The remaining amount will be taxed at your average rate of tax for the year of your retirement and the previous year, instead of at your higher marginal rate of taxation. With retirement annuities, you are entitled to R4 500 multiplied by the number of years of membership, tax- free. Invest the tax- free amount where it will attract the lowest rate of tax and earn the best risk- adjusted returns. 3The earlier you start a retirement annuity, the greater your tax- free benefit at retirement.

You should avoid having too many retirement annuity plans as you could undermine your ability to get the maximum tax- free allowance at retirement. 4Mind the gap. This is because the tax- free portion is R4 500 multiplied by the number of years of membership of the fund. Very few retirement funds provide enough money to ensure a financially secure retirement, particularly now that most companies are reducing or discontinuing medical scheme subsidies to retirees. Make sure you check up on how you are managing to fill" the gap" by regularly having a financial needs analysis with a properly qualified financial adviser. 4Start 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. 4Be careful when buying an annuity( pension) with( at least) two- thirds of your retirement fund savings, as you are required to do by law. This means you need to have other investments to top up your retirement fund savings. Living annuities have been widely miss- sold because of their potential to earn higher profits for the companies selling them and higher commissions for advisers. With a traditional guaranteed annuity, you don t, the life assuror does. 4If you are investing in a living annuity to buy a pension and you need to draw more than the minimum five percent of the annual value, you could be exposing yourself to the risk of not having sufficient money to provide you with a financially secure income until you die. 4Most living annuity providers allow you to draw your pension from different parts of the underlying investments.

With a living annuity, you take the investment risks. This enables you to structure the annuity so you have an income- generating portion and a capital growth portion. This will significantly reduce the risk of undermining your capital. 4If you use a living annuity to buy a pension, do not invest all the money in equities or equity unit trusts. You should use this facility to invest mainly in interest- generating investments for the income portion. At the absolute maximum, you should have no more than 75 percent invested in equities. If you do not, you will be charged a punishing rate of interest from the date of purchase.

The balance should be in more stable interest- earning investments. 4Always pay the full amount owing on your credit card. The so- called budget account on your credit card is a misnomer, as you pay a high rate of interest. 4Use a credit card to get 55 days interest- free credit by buying at the start of the buy- and- pay cycle and repaying the debt in full by the due date. Rather put the money into a money market account or into your mortgage bond. 4Pay yourself first. This option does not apply to cash withdrawals and petrol purchases, on which you pay punitive interest rates from the date of the transaction. 4Don t leave large amounts of money sitting in a low- interest bank savings or current account. Set up debit orders that channel money into investments as soon after pay day as possible so that you will not" miss" the money. 5Never use debt on which you have to pay interest to buy products you consume. The exception is property that you intend to hold for at least five years and in which you live. 5Keep a good credit record. You are in effect making the items far more expensive, and will be able to save less and buy less in the long term. 5Borrowing to buy reasonably priced property is a good thing because you can expect the property to improve in value. 5You should not, borrow to invest, as a rule, particularly not in volatile markets, such as share markets.

It could save you thousands of rands, particularly when you want to borrow money for big- ticket items such as a home or a vehicle, because the better your credit record, the lower the interest rate you can expect to pay. 5The best investment you can make is to repay debt. By paying off debt, you get one of the best returns available, tax- free. 5Borrow wisely. Interest rates in South Africa are high. Expensive debt is a quick way to lose money. The difference can be more than 10 percentage points. 5If you have a problem meeting your debts, don t try to hide away. For example, borrowing against a credit card is far more expensive than borrowing against a home loan.

Go and speak to your creditors, to find a, particularly your bank way out of your problem. They will charge you far more interest and make your problem worse. 5Beware of plastic. Don t use debt consolidators/ administrators. Store cards and credit cards may be convenient, but they are also an easy way of running up debt. 5Don t fly now, pay later. For example, on a home loan of R100 000 at a mortgage bond rate of 15 percent over 20 years, your normal repayments will be R1 317Increase the repayments by R100 and you will reduce your repayment period to 14 years and five months, and you will save R88 2293 in interest repayments. 6Always negotiate your interest rates. It is very depressing to be still paying for a holiday( or any other luxury) five years later, when you want another. 5If you take out life assurance or short- term insurance to cover debt or an asset financed with debt, always pay the premiums as they become due to avoid paying interest on the premiums as well. 6Try to repay more on your home loan than the minimum.

Shop around. On a R100 000 mortgage bond over 20 years at 15 percent, you will repay R316 029 in total. A one- percent difference can have a significant effect. At 14 percent, you will repay R298 444- a saving of R17 58 6When mortgage bond interest rates come down, keep your repayments at the same level. Repayments will also not be so difficult to contend with if interest rates rise again. 6If you take out a home loan when interest rates are low, always ask yourself whether you will be able to afford the repayments if interest rates go up. You will pay off your bond quicker and save yourself a whack in interest repayments. If you are in doubt, take out a smaller loan. 6Most mortgage bonds enable you to repay more than your set repayments and to borrow against what you have paid.

The effective interest you receive is much greater and there are no additional costs. This is useful not only to borrow money for other things at short notice, but also to use as a savings account. Say, you need to, for instance put away money to pay school fees or provisional tax. "Save" the money in your mortgage bond until you need it, rather than in a low- interest bank savings account. 6Get a pre- approval agreement on a mortgage bond before you start looking for a home. 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. 6A bank valuation of a property is not a guarantee that the building is structurally sound. This will give you the advantage of being able to shop around for the best rate while you re not under pressure and the buyer will be more willing to sell to you knowing that the money is available. 6Always have a lawyer check a property deed of sale before you sign up. If you suspect a problem, get a full structural survey before you enter any contractual agreement. 6Don t fall prey to what is called a mortgage bond- linked endowment. The theory is that, at the end of the period, the investment should be worth more than the capital.

With these products, you are encouraged to take out a home loan, repay only the interest, and invest the amount that would have repaid the capital. With high interest rates and poor investment returns, these are high- risk products. 6If you take out life assurance, always declare any health problem or habit or hobby that might affect your insurability. If you lie, either by omission or commission, your dependants may be left with nothing. You may have to pay more in premiums, but at least your dependants will receive the money if and when a claim is made. The life assurance company is legally entitled to repudiate any claim when incorrect information is provided, even if it is not associated with the cause of death or disability. 7Never buy too much life assurance against death or disability. Too much life assurance merely means you are paying out more in premiums and costs, and you have to accept a lower standard of living now. 7Always avoid cashing in an investment( endowment/ universal) policy before its maturity date.

The purpose of life assurance is to ensure you and your dependants maintain a standard of living, not to enrich dependants in the future. Cashing in is costly. It is preferable to get a longer term guarantee on your premiums. 7If you have no option but to surrender a life assurance investment policy, always see if you cannot get more than the surrender value offered by the life assurance company by trading the policy on the secondhand market. 7Rather than surrendering a policy, such as making, consider other options it paid- up so you can stop paying premiums. Not only could you receive less money than you have paid into the investment, but if there is life assurance cover attached to the policy, you may not be able to replace the cover in the future, particularly if you are less healthy. 7When taking out life assurance cover against dying or being disabled, always establish whether the premiums are guaranteed- and for how long. You may also be able to take a loan against the policy, but check the interest rate. This has two advantages: You do not pay executor s fees of up to 75 percent with VAT on the amount. Sometimes it is higher than it would be if you used the policy as security to get a bank loan. 7If you are concerned about volatile markets, one of the best investment products you can get is a life assurance smoothed bonus policy that guarantees your capital and smoothes out the market returns. 7If you intend the benefits of a life assurance policy to go to someone in particular, have this on record with the life company by naming the person as the beneficiary of the policy.

And the beneficiary receives the money almost immediately, without it being tied up for months or even years while your estate is finalized. Life assurance is essential for anyone who has dependants. 7If 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. 7It is not saving if you put money away at the start of the month but withdraw it before the end of the month. More often than not, your dependants will need the money immediately after your death. 7If you can afford a hamburger and Coke every day, you can afford life assurance. Life assurance investments are useful for people who find 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. 8Do not take out a life assurance investment contract for more than 10 years. 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 could see you getting back less money than you paid in. You don t know how your financial position could change. The main reason life assurance sales people attempt to get you to take out longer- term policies is because they receive more commission. 8If you have dependants, life assurance is more important than investments.

The main reason 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. Investments take longer to accumulate to the level that may be required by your dependants, whereas life assurance benefits can immediately meet those needs if required. 8As 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. This strategy also gives you more flexibility with your investments. 8Life assurance against dying or being disabled may only be required for short periods. You do not need a 20- year contract. 8Consider joint life assurance if you have a partner. For example, you may need cover to provide for the education of children for 10 years or until you have built up sufficient savings. It is often cheaper. Obviously, the premium will be determined by the option you choose. 8Be very wary of credit life assurance.

It comes with the options of paying when the first of the two dies, or when the last partner dies, or fully on the death of each partner. Although it can be essential to ensure debts are paid when you die, it is also open to abuse. 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. Often, for example, when you finance, a motor vehicle, you will be sold life assurance to cover the debt. Commission, not your financial well- being, motivates sales people. 8You need to do some estate planning, particularly if you are wealthy. You can be forced to take out insurance, but you can and should shop around for the cheapest premium. 8You can reduce the amount you pay in short- term insurance by increasing the excess( the first portion of any claim, which you pay) . Any amount above R5 million that is not left to your spouse is subject to estate duty at a rate of 20 percent, and any capital gain 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. 8Apart from when you have a home loan, you cannot be forced to take out short- term insurance with any particular company when you receive a loan on a fixed or moveable asset.

A higher excess will mean lower premiums. Better still, build up savings equivalent to any excess you may be required to pay and earn interest on them. 8When you change address, check whether your short- term insurance premiums could be reduced. However, you should keep the excess within affordable limits. Where you live can effect the level of your short- term insurance premiums. 9Most short- term insurance policies have a number of exclusions. For example, if your tires are smooth, your claim will be rejected no matter what the cause of the accident. For example, on motor vehicle insurance, you are required to maintain the vehicle properly.

Be aware of the exclusions, so that you don t have a claim refused unexpectedly. 9Check the value of your motor vehicle. When you claim, you will only be paid the actual value, not the insured value. 9When making a short- term insurance claim, first find out what effect the claim will have on your no- claim bonus. One racket perpetrated by insurance companies is to increase premiums annually, when they should be decreased to take account of the declining value of your vehicle. If the claim( after payment of the excess) is relatively small, it may be better not to claim and keep your no- claim bonus intact. Every year you are entitled to claim an exemption of R10 000 against any capital gain. A no- claim bonus can equal as much as a 60 percent reduction on premiums after five years. 9Use the R10 000 exemption from capital gains tax. Say, you want to, for example cash in an investment with a capital gain of R20 000 in November.

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 6 9If you are investing for an income and have exceeded your tax- free interest exemption, consider cashing in investment capital that you can offset against your R10 000 capital gains tax exemption. 9Never make a tax decision first when investing. Instead, cash in half in November and half after March 1, the start of the new tax year. 9Interest- bearing investments become far more attractive when you don t have to pay tax. Consider the tax implication last. Also, remember that each spouse is entitled to the tax- free amount of R10 000 under the age of 65 and R15 000 over the age of 6 9To qualify for the R1 million capital gains tax exemption on your primary residence, you actually have to live in that property. Many people make the tax decision first and reject what could have been a good investment. 9If your spouse is on a lower marginal income tax rate than you, it is best to transfer interest- earning assets to him/ her. If you rent out the property for even part of the time, you will have to deduct the period proportionally from the exemption. 9The benefits of a life assurance policy are not subject to income tax or capital gains tax in your hands. So, if your marginal tax rate is greater than 30 percent, you are receiving a tax advantage by investing in a life assurance policy as opposed to a unit trust investment with similar underlying investments. 10Assets can be transferred between spouses without attracting donations tax.

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 5 percent on capital gains. So it can pay to transfer assets on which capital gains tax may become due, to take advantage of lower marginal tax rates and the R10 000 exemption. So, the lower your marginal rate, the lower your capital gains tax will be. Remember, 25 percent of a capital gain( which is not exempt) is included as income for tax purposes. Some sayings about money. "Money for me has only one sound: liberty. " --Gabrielle Chanel. "Lack of money is the root of all evil. " --George Bernard Shaw. "A little, is better than, justly gained thousands secured by stealth, or at the expense of another s rights and interests. " --from Money 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 some grace. " --Richard Neely WV Supreme Court. "More people are bribed by their own money than anybody else s. " --Jonathan Daniels. "Experience, shows that neither, however a state nor a bank ever have[ sic] had the unrestricted power of issuing paper money without abusing that power. And none seems so proper for that purpose as that of subjecting the issuers of paper money to the obligation of paying their notes either in gold coin or bullion. " --David Ricardo. "We have rights, to give as, as individuals much of our own money as we please to charity. In all states, the issue of, therefore paper money ought to be under some check and control.

But as members of Congress we have no right so to appropriate a dollar of public money. " --David Crockett, 1827, Member of Congress- 31, 1832- 35. "The way to get things done is to stimulate competition. Conwell, 1877, Temple Univ. "For the folk- community does not exist on the fictitious value of money but on the results of productive labour, which is what gives money its value. " --Adolf Hitler to Reichstag, as translated by, 30 Jan 1937 Norman H. I do not mean in a sordid, money- getting way, but in the desire to excel. " --Charles Schwab. "Money is power, & you ought to be reasonably ambitious to have it. " --Russell H. Baynes. "God gave me my money. Having been endowed with the gift I possess, I believe it is my duty to make money& still more money& to use the money I make for the good of my fellow man according to the dictates of my conscience. " --John D. I believe the power to make money is a gift from God. . . to be developed& used to the best of our ability for the good of mankind.

Rockefeller, 1905. "He who tampers with the currency robs labor of its bread. " --Daniel Webster, 15 Mar 1837. "At least 25% of the money Americans spend on health care is wasted. " --Joseph A. The want of money is so quite as truly. " --Samuel Butler. "I was part of that strange race of people aptly described as spending their lives doing things they detest to make money they don t want to buy things they don t need to impress people they dislike. " --Emile Henry Gauvreay. "I believe that sex is one of the most beautiful, wholesome things that, natural money can buy. " --Steve Martin. "Money can t buy friends. Califano, "Billions Blown on Health" , New York Times, 12 Apr 1989. "Money is like muck, not good 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 live beyond its income. " --Samuel Butler. "It has beeen said that the love of money is the root of all evil. But you can afford a better class of enemy. " --Lord Mancroft. "When a fellow says it ain t the money but the principle of the thing, it s the money. " --Kin Hubbard. "All I ask is a chance to prove that money can t make me happy. " "While money can t buy happiness, it certainly lets you choose your own form of misery. " "While money doesn t buy love, it puts you in a great bargaining position. " "Money s only important when you don t have any. " --Sting. "Money isn t everything. It s the key to power. "Money is the sign of liberty. It s just most everything. " --Nica Clark. "In societies of low civilization, there is no money. " --Herbert Spencer. money can prolong one s life.

To curse money is to curse liberty- -to curse life, if it be, which is nothing not free. " --de Gourmont. If you would be wealthy, think of saving as well as getting. Wealth may be an excellent thing, for it means power, and it means leisure, it means liberty. The Truth. Don t leave your family with nothing but bills, and bad debts. When it s time for you to go.

Give them something to remember you by. First you work hard for your money, and then you let your money work hard for you. Like an investment. Trust me it s the key to financial freedom. Learn to spot opportunities, create your own solutions. Don t be moneys slave for ever. Never say" I can t afford it, " rather say" How can I afford it.

Everybody can afford R00, but not every body can afford. I would rather ask a million people for R00, than asking one person for R1 000 000 Because. R1 000 000Plant your money in good soil. And your seed will grow and grow. And give it as much water as you can, by adding to your seed. And after some time, depending on how much water your gave your seed.

Then you start enjoying the seeds of your work. It will multiply itself. You can judge a tree by the fruits it bears, good soil is hard to find. The rich teaches their kids about money, the poor don t. Don t let the Indi Trading Company slip you by. Invest in yourself, invest in you children, invest in your happiness. and in financial freedom. . to freedom. US Existing Home Sales fails to support New Home Sales figure.

FOREX Daily Outlook by Easy- Forex. com. Japanese CPI give an early indication for inflationary pressures. CURRENCY TRADING SUMMARY- 28 MAY 2007( 00: 30GMT) U. Dollar Trading( USD) remained relatively unchanged against a basket of currencies despite Existing Home Sales disappointing on the back of positive New Home Sales seen the previous session. The USD initially lost ground against other majors before investors chose to square positions ahead of the long weekend. With markets expecting a figure of 14 mio for the month of April, the actual figure was released at 99 mio, yet its effect was limited due to an upward revision of the previous month to 15 mio. In US share markets the NASDAQ rebounded to gain by 127 points( +76% ) whilst the Dow Jones also gained by 615 points( 49% ).

Oil rose by US$ 93 a barrel to US$ 61Looking ahead, a slow beginning to the week is expected with U. Crude oil continued to rise over growing uncertainty in Nigeria and Iran. S. markets closed for Memorial Day. The figure for the month of June was expected to come in at 6 yet surprised many with a release of Overall the EURUSD traded with a low of 3411 and a high of 3473 before closing the day at 3449 in the New York session. The Euro( EUR) gained moderately on the back of a positive reading in Gfk consumer confidence. A slow start is also expected out of the EZ with many markets closed for trading.

Up from the March s decline of- 3% giving indications that inflationary pressures are slowly returning. The Japanese Yen( JPY) was the biggest mover on Friday as CPI data matched expectations for the month of April, released at- 1% . Although the USDJPY experienced early losses on the back of inflationary data, the pair moved higher to end the day. The Sterling( GBP) was unchanged against the USD on Friday despite GDP data being released slightly higher than expectations. Overall, the USDJPY traded with a range of a low 1285 and a high of 1277 before closing near day highs at 1272 in the New York session. Although GDP( Q1) q/ q came in on consensus at 7% , the y/ y figure was up to 9% (Forecast: 8% ). Looking ahead UK will have a market holiday to begin the week on Monday.

Overall the GBPUSD traded with a range of a low 9835 and a high of 9880 before closing 9846 in the New York session. The Australian Dollar( AUD) traded in a defined range once again on Friday, largely attributed to data absence. The Canadian Dollar( CAD) reached a fresh 29 � year high against the greenback due to higher oil prices and expectations for a hawkish statement from the Bank of Canada next week. Overall the AUDUSD traded with a range of a low 8176 and a high of 8218 before closing the day at 8218 in the New York session. Overall the USDCAD traded with a range of a low 0778 and a high of 0870 before closing the day at 0804 in the New York session. Gold rose US$ 00 an ounce to US$ 6530.

Gold( XAU) rebounded on Friday following the previous session s sharp decline. TECHNICAL COMMENTARY. EUR/ USD 3368 3371 3450 3545 3612. Currency Sup 2 Sup 1 Spot Res 1 Res 2. USD/ JPY 1215 1264 1275 1220 1238. AUD/ USD 8150 8170 8185 8273 8354.

GBP/ USD 9659 9677 9840 9959 0000. XAU/ USD 6420 6501 6590 6640 6705. Initial support at 3371( 32% retracement of the 2865 to 3683 advance) followed by 3368( Former resistance from Dec 4) . Euro 3450. Initial resistance is now located at 3545( May 17 high) followed by 3612( May 16 high) Yen 1275. Initial resistance is now at 1220( Jan 29 reaction high) followed by 1238( 68% ret 1318 to 1067) Pound- 9840.

Initial support is located at 1264( May 16 low) followed by 1215( May 16 low) . Initial support at 9677( May 21 low) followed by 9659( (50% retracement of the 9184 to 0134 advance) ). Initial support a 8170( May 4 reaction low) followed by 8150( Apr 9 low) . Initial resistance is now at 9959( 68% retracement of the 0134 to 9677 decline) followed by 0000( May 9 high) Australian Dollar- 8185. Initial resistance is now at 8273( May 17 high) followed by 8354( May 14 high) Gold- 6590. Initial resistance is now at 6640( May 22 high) followed by 6705( May 14 high) Forex trading involves substantial risk of loss, and may not be suitable for everyone. _ Our Newsletter.

Initial support at 6500( May 17 low) followed by 6501( Mar 24 low) . Dear Investor 5 March2007. Our main activity continues to be All Share Index Futures trading which has yielded the following nett returns for investors over the past 12 months. FIXED- INTEREST ACCOUNTS. Dow Average is at last showing signs of weakness, following a frustrating multi- month up- trend. We believe the international gold price passed an important peak of$ 725( based on London PM Fixes) on 12 May 2006, and is now on its way down.

HIGH RISK- HIGH RETURN NO. 2 ACCOUNTS. 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. Mar 2006. 3% May 2006. 7% June 2006. 4% July 2006. Our investments supporting interest payments on these accounts are linked to both gold price trading and movements in the Dow Jones Industrial Average. Nil. At this stage, we expect it to continue indefinitely. 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.

We encourage you, to spread your, the investor money equally between the so- called High Risk- High Return No. 2 Accounts and Fixed Interest No. 1 Accounts, for optimum performance. Our products. Yours sincerely, The INDI Trading Company Limited. NO RISK- GOOD RETURN 1( ONE) WEEK S NOTICE TO WITHDRAW. o 5% interest compounded monthly( provided the interest stays in the account) You can also withdraw all or part of your interest each month if you want to. R 1 0000 CAPITAL AND INTEREST FULLY GUARANTEED. The minimum amount for this account is.

NO RISK- GOOD RETURN 3( THREE) WEEK S NOTICE TO WITHDRAW. o 2% interest compounded monthly( provided the interest stays in the account) You can also withdraw all or part of your interest each month if you want to. R 1 0000CAPITAL AND INTEREST FULLY GUARANTEED. The minimum amount for this account is. NO RISK- GOOD RETURN 6( SIX) MONTHS NOTICE TO WITHDRAW. o 5% interest compounded monthly( provided the interest stays in the account) You can also withdraw all or part of your interest each month if you want to. The minimum amount for this account is R 5 0000 MOST OF CAPITAL AT RISK. The minimum amount for this account is R 1 0000 CAPITAL AND INTEREST FULLY GUARANTEED* ( I RECOMMEND THIS ACCOUNT) NO RISK- GOOD RETURN 6( SIX) MONTHS NOTICE TO WITHDRAW. o� 5% interest compounded monthly( provided the interest stays in the account) You can also withdraw all or part of your interest each month if you want to. This account does not have a specific interest rate, the interest can be nothing for one month but 3 or 5 or more the next.

NO RISK- GOOD RETURN 9( NINE) WEEK S NOTICE TO WITHDRAW. o 75% interest compounded monthly( provided the interest stays in the account) You can also withdraw all or part of your interest each month if you want to. In other words it fluctuates. The minimum amount for this account is R 500 000 CAPITAL AND INTEREST FULLY GUARANTEED. The minimum amount for this account is R800 000 CAPITAL AND INTEREST FULLY GUARANTEED. NO RISK- GOOD RETURN 12( TWELVE) MONTHS NOTICE TO WITHDRAW. o 3% interest compounded monthly( provided the interest stays in the account) You can also withdraw all or part of your interest each month if you want to. There are no maximum amount for these accounts.

From the four products we have available the capital and growth arrangements are only valid for the investments indicated as no risk. Free Promotional Investment. The high risk investment does not carry those guarantees. If you are still uncertain about an investment let us help you by opening a free promotional account for you. We hereby guarantee that the investment capital amount will under all circumstances remain at an equal to or above the amount as indicated on the client s statement at the end of each month. We ll sponsor you R200 to open an account.

When you do decide to withdraw there is a six months notice period. And you can watch how your money grows, you can withdraw your money at anytime or invest any amount whenever you like. You ll receive 5% compounded interest every month guaranteed. HOW DO I OPEN AN ACCOUNT? To open your free promotional account click the block in the middle of the page and fill out form and one account will be opened for you automatically once you have submitted it. Step 1: Go to our website http: //www. indiplan. com. Step 3: Click on the" APPLY NOW" button at the bottom of the product.

Step 2: Choose one or more INVESTMENT PRODUCTS which will suit your needs. Step 4: Complete the APPLICATION FORM. Step 5: Download the relevant form, fill in your details and fax it to: +2711 955- 6648. Once you have done this, click on the" Submit" button. Step 6: Please contact us for our banking details. Step 7: Fax the deposit slip or proof of payment to: +2711 955- 6648.

Do the financial transfer into our bank account with reference: Monument and your chosen account name. Step 8: Please inform us if you would like us to debit your bank account on a monthly basis to add to your initial investment. DOWNLOAD THE DEBIT ORDER FORM, fill in your details, and fax to: +2711 955- 6648. This is an optional benefit. Step 9: On receipt of your transfer, we shall sign the form mentioned in step 4, and fax it back to you as confirmation that your account has been opened. Please indicate if you would like to receive your statement via ordinary mail or whether internet access alone is sufficient. Please note that you will receive an INDI account number.

Agents. "The company" pays a standard commission fee to clients based on the following notice periods and Interest rates. 1( One) month notice to withdraw, pays 5% compounded interest monthly, commission at 2% for all new investments and money. 3( Three) month notice to withdraw, pays 0% compounded interest monthly, commission at 2% for all new investments and money. 6( Six) month notice to withdraw, pays 5% compounded interest monthly, commission at 2% for all new investments and money. 2( Two) weeks notice period High Risk( no guarantee) 5% p/ m possible return. Group schemes also available. Commission at 2% for all new investments and money. Debit Order facilities. Your own website. Direct accesses to network database. Global investments in our international currencies.

To become an agent you will need to invest a minimum of R20 000 in a 5% Account or in foreign currencies equivalent to US$ 500 The agent will then be able to negotiate the commission witch will be paid to the affiliates out of the commission paid to the agent by The Indi Trading Company Limited on a monthly basis. Global marketing solutions. Commission will be paid to the agent based on all new investments and not on replaced funds witch has been withdrawn and redeposited again. The agent will be paid R 200 commission. For example: The agent generates an investment of an R10000. Should the investor withdraw R3000, and do a deposit of R3000, no commission will be paid to the agent. This means that commission will only be paid on new funds or money invested.

But if the investor deposits R6000 into the investment, commission on R3000 will be paid to the agent. Commission will be paid on the 20th of every month for the previous month. No other commission or fees except for those specified above will be paid. Reports need to be forwarded at the end of each month to anton@ indiplan. com. Capital Growth Guarantees. The high risk investment does not carry any guarantee for capital growth. The capital and growth guarantees are only valid for the investments indicated as no- risk.

The INDI Trading Company Limited hereby guarantees that the investment capital amount will under all circumstances remain at a level equal to or above the amount as indicated on the client s statement at the end of each month. In the event that the growth amount is chosen to be compounded, the growth amount will be added to the capital amount at the end of each month. The INDI Trading Company Limited hereby guarantees that the investment specific growth will under all circumstances be paid to the client or compounded monthly. The new capital amount will then be guaranteed as in point# 3 above. The INDI Trading Company Limited depends on profits in the market sectors in which it invests. Guarantees are made on the strength of the balance sheet of The INDI Trading Company Limited. In the event that sufficient profits are not achieved in any particular month or series of months, The INDI Trading Company Limited will pay the growth amount specific to each investment out of its own resources. (OUR INVESTORS SMILE ALL THE WAY TO THE BANK- First u work hard for money, then its up to u to let your money work for YOU! !!!!!!) For more information please contact.

Your monthly statement serves as legal proof of funds due to you at any time. Anton or Chantal via e- mail or by telephone on+ 27 11 955 665E- mail anton@ indiplan. com or chantal@ indiplan. com. Should you feel uncertain about the procedure to open an account, please communicate with Anton or Chantal before making an investment. Investment or investing] is a term with several closely- related meanings in business management, related to saving, finance and economics or deferring consumption. All information on this article below was found on Wikipedia, the free encyclopedia. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. The term" investment" is used differently in economics and in finance.

Literally, the word means the" action of putting something in to somewhere else" (perhaps originally related to a person s garment or vestment ). Economists refer to a real investment( such as a machine or a house) , while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset. Valuation is the method for assessing whether a potential investment is worth its price. In finance, investment is buying securities or other monetary or paper( financial) assets in the money markets or capital markets, or in fairly liquid real assets, real estate, such as gold, or collectibles. Types of financial investments include shares, and bonds, other equity investment( including bonds denominated in foreign currencies) . Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, securities or investments, or strictly speaking. These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.

Nevertheless, since their cash flows are closely related to( or derived from) those of specific securities, they are often studied as or treated as investments. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary. Investments are often made indirectly through intermediaries, mutual funds, such as banks, pension funds, collective investment schemes, insurance companies, and investment clubs. In finance, investment is buying securities or other monetary or paper( financial) assets in the money markets or capital markets, or in fairly liquid real assets, real estate, such as gold, or collectibles. Types of financial investments include shares, and bonds, other equity investment( including bonds denominated in foreign currencies) . Valuation is the method for assessing whether a potential investment is worth its price. These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.

Nevertheless, since their cash flows are closely related to( or derived from) those of specific securities, they are often studied as or treated as investments. Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, securities or investments, or strictly speaking. Investments are often made indirectly through intermediaries, mutual funds, such as banks, pension funds, collective investment schemes, insurance companies, and investment clubs. Money is any good or tokens that functions as a medium of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary. Money also serves as a standard of value for measuring the relative worth of different goods and services and as a store of value.

Money is central to the study of economics and forms its most cogent link to finance. Some authors explicitly require money to be a standard of deferred payment. Money is not the same as real value. In common usage, money refers more specifically to currency, particularly the many circulating currencies with legal tender status. The latter being the basic element in economics and not money. The absence of money causes an economy to be inefficient because it requires a coincidence of wants between traders, and an agreement that these needs are of equal value, before a transaction can occur.

Interest. The efficiency gains through the use of money are thought to encourage trade and the division of labour, in turn increasing productivity and wealth. Interest is a fee paid on borrowed money. The amount lent is called the principal. The fee is a compensation to the lender for foregoing other useful investments that could have been made with the loaned money. The percentage of the principal which is paid as fee( the interest) , over a certain period of time, is called the interest rate.

The difference is that the principal changes with every time period, where the principal, unlike simple interest remains the same. Compound interest: Compound Interest is very similar to Simple Interest. The new principal at the end of every time period is essentially the simple interest on the principal at the beginning of the time period, added to the principal. The principal at the end of the first period will be p r( for t= 1 period) . For example, suppose p is the principal, and r and t have the same meanings as above. Similarly, the principal at the end of the second period will be( r r) r.

CA= r* ( 1+ r) t. Thus we can land upon a general formula: CI= p* (r) t. Where compound interest( CI) is the product of the principal( p) , and the rate( r) in decimal form raised to the power of the number of terms( t) ; and the compound amount( CA) is the product of rate( r) and the quantity of the rate( r) plus one, raised to the power of the number of terms( t) . To simplify this problem, a common economics convention is to disclose the interest rate as though the term were one year, yielding the effective, with annual compounding interest rate. A problem with compound interest is that the resulting obligation can be difficult to interpret. However, interest rates in lending are often quoted as nominal interest rates, i. e. , compounding interest uncorrected for the frequency of compounding.

Loans often include various non- interest charges and fees. The discussion at compound interest shows how to convert to and from the different measures of interest. One example are points on a mortgage loan in the United States. The APR attempts to expresses the total cost of a loan as an interest rate after including the additional fees and expenses, although details may vary by jurisdiction. When such fees are present, lenders are regularly required to provide information on the true cost of finance, often expressed as an annual percentage rate( APR) . Economic Characteristics.

Medium Of Exchange. Money is not generally considered to have the following characteristics, which are summed up in a rhyme found in older economics textbooks and a primer: "Money is a matter of functions four, a measure, a medium, a standard, a store. " There have been many historical arguments regarding the combination of money s functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. Financial capital is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. A medium of exchange is an intermediary used in trade. Person A should recognize the value of the item so that Person B can give it to A in exchange for goods or services. An effective medium of exchange should have the following characteristics: It should also be recognizable as something of value. It should be easily transportable.

This is why oil, vermiculite, coal, or water are not convenient in this regard. Precious metals have a high value to weight ratio. It should be durable. Some countries( such as Australia, Mexico and Singapore, New Zealand) are making their bank notes out of plastic for increased durability. Money is often left in pockets through the wash. Gold coins are often mixed with copper to improve durability. A unit of account is a standard numerical unit of measurement of the market value of goods, and other transactions, services.

Unit Of Account. Also known as a" measure" or" standard" of relative worth and deferred payment, a unit of account is a necessary pre- requisite for the formulation of commercial agreements that involve debt. Precious metals can be coined from bars, or melted down into bars again. An effective unit of account should be: Divisible into small units without destroying its value. Fungible: that is, one unit or piece must be exactly equivalent to another, which is why diamonds, works of art or real estate are not suitable as money. For instance, coins are often made with ridges around the edges, so that any removal of material from the coin( lowering its commodity value) will be easy to detect. ________________________________________ Store Of Value. A specific weight, or size to, or measure be verifiably countable.

To act as a store of value, a form of, a commodity money, or financial capital must be able to be reliably saved, and retrieved, stored- and be predictably useful when it is so retrieved. Fiat currency like paper or electronic currency no longer backed by gold in most countries is not considered by some economists to be a s