Connect with us

Finance

Tax Free Savings accounts or retirement annuities

The start of a year is a great time to re-assess where we are in our journey to financial well-being and turn our attention to creating a financial plan for the rest of the year. One of the most important aspects of this planning is considering the best combination of products in the market for your personal circumstances and needs. This includes tax efficiency, availability of investment funds, value for money, cost structures and access to the funds if one requires them.

South Africa has access to several longer-term savings products that all have their own unique features that could provide some benefit to customer. Two such savings products are retirement annuities and tax-free savings accounts, and here is how they can offer value when it comes to savings:

A retirement annuity is an investment product that one can make once off and monthly contributions to in order to bolster your retirement savings.  RAs offer tax efficiency for both income tax and tax on investment returns. An RA works similar to a company pension fund – but without the employer.

It’s not easy thinking about the future, especially in these incredibly difficult times, and one can easily feel overwhelmed. It’s so important when making these types of decisions to approach a professional financial adviser for advice. They can review your individual circumstances, current savings and your long-term and retirement goals.

Finance

Euro zone ministers expect inflation to slow in 2022

The acceleration of euro zone inflation, driven energy prices, is mostly temporary. Then the price growth will slow down again. The euro zone finance ministers agreed that, that too the next year as forecasted by the European Central Bank and the European Commission.

Paschal Donohoe, chaired the talks of the ministers in Luxembourg. In a news conference he said that there was also agreement that the inflation spike was not an argument against the transition to renewable sources of energy. This is under the EU’s ambitious plan of reducing CO2 emissions to zero by the year 2050.

Continue Reading

Finance

Under new rules, borrowing for investment sensible

British finance minister Rishi Sunak said that the government borrowing to fund investment was a sensible thing. This is to allow under new fiscal rules that he is likely to announce, unlike borrowing for day-to-day spending. He said that borrowing for capital investment that is going to drive up their growth is probably a sensible thing for them. And that too particularly in an environment of slightly lower interest rate. Sunak stated this in an event on the sidelines of the annual conference of Britain’s ruling Conservative Party. This event was organized by the Taxpayers’ Alliance advocacy group. Sunak stated in that event, that borrowing for more day-to-day spending is probably less something that you would want to have as part of your framework.

Continue Reading

Finance

IMF board to interview Georgieva-sources

The International Monetary Fund’s executive board is going to interview Managing Director Kristalina Georgieva. This is regarding that; its reviews claims that she pressured World Bank staff to alter data to favor China in her previous role. Board members were initially expected to meet with Georgieva. But spent their time working on other regular business matters.

The board members spent hours for questioning lawyers from the WilmerHale firm. This is about their World Bank investigation report which alleged that Georgieva, as the bank‘s CEO applied undue pressure on staff, to alter data in the flagship “Doing Business” report to benefit China. Then, an IMF spokesperson said that the IMF board remains committed to a thorough, objective, and timely review of the matter. Georgieva has strongly denied the accusations.

The upcoming interviews could prove pivotal in either increasing support for Georgieva. This is with many IMF shareholders are keen to wrap up the board’s deliberations on the matter. The fund’s most influential member governments, including the top shareholder the United States, have withheld public judgment. The World Bank tasked WilmerHale with investigating the “Doing Business” data irregularities identified in 2020. The law firm’s report contends Georgieva. The former World Bank President Jim Yong Kim’s office pressured staff to manipulate data so that the China’s global ranking in the “Doing Business 2018” study of investment climates rose to 78th from 85th.

Continue Reading

Trending