The Family Finance Show

In this episode Kate Bohm gives us a lesson in tax fundamentals. From why we pay tax, to how to reduce your tax bill, and tax benefits for families, she answers all the common tax questions. Nobody enthusiastically pays tax, but it is important to make sure you are fully compliant.
We discuss the two basic forms of income tax: PAYE and provisional tax. You may pay both, for example if you have a job where PAYE is deducted automatically, as well as income from a side hustle, where you pay provisional tax.
If you have investments, you pay tax on interest income, dividends and capital gains tax. It is a common misnomer that you are liable for capital gains tax on the annual growth of your assets, but Kate explains that you only pay Capital Gains Tax when you sell the asset. There is an exempt amount for both interest income and capital gains tax, and the calculations can get complicated. So, as always, it is really important to get help with your specific set of circumstances.
We also discuss circumstances that allow you to claim a tax rebate against a home office if you work from home, as well as tax incentives for individual or household savings such as pension or retirement annuity deductions and Tax Free Savings Accounts.
Disclaimer: Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Service Provider. This material is not intended as and does not constitute financial advice or any other advice and is neither exhaustive nor prescriptive. It does not take into account your personal financial circumstances. Your financial adviser will assess your financial situation and needs and assist you to draw up a plan to help you achieve your financial goals. The views expressed by the contributor are his or her own (as an independently registered financial services provider, financial adviser or other independent capacity), and not necessarily endorsed by Old Mutual (as a separate financial services provider).
Join us on twitter for real conversations about family finances:

• @FamFinanceShow
• @DianaGranoux

Website:
www.familyfinanceshow.com

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https://podlink.to/FamilyFinanceShow

Tax free savings accounts are an excellent way to save and invest, most especially if you plan to invest for a long time. As Zama Dikana from Old Mutual explains, they attract no tax which gives you a higher return on investment than you would otherwise get.
If you don’t already have one, and you have extra cash, no matter how little, available to save and invest, you should certainly open a tax free savings account (“TFSA”).
Zama discusses the rules and limits for TFSAs, how to invest on behalf of your children and he answers some questions from a loyal listener.
Mentioned in this episode: If you’re just getting started with investing, listen to this episode we did called “Buying Shares a Beginner Guide”
https://www.familyfinanceshow.com/podcast/episode/4b887ffa/buying-shares-a-beginners-guide-simon-brown
Disclaimer: Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Service Provider and Life Insurer. This material is not intended as and does not constitute financial advice or any other advice and is neither exhaustive nor prescriptive. It does not take into account your personal financial circumstances. Your financial adviser will assess your financial situation and needs and assist you to draw up a plan to help you achieve your financial goals. Product information provided by the contributor only serves to inform you of Old Mutual products but does not replace the terms and conditions and technical detail applicable to the products or services mentioned. It should not be construed as a offer or recommendation to buy or sell the products featured without obtaining the recommended financial advice.
The views expressed by the contributor are his or her own, and may not necessarily reflect the views held by Old Mutual.
Join us on twitter for real conversations about family finances:

• @FamFinanceShow
• @DianaGranoux

Website:

• www.familyfinanceshow.com

Subscribe on your favourite podcast platform:

https://podlink.to/FamilyFinanceShow

Jenny Rushin from Betterbond joins us in this episode. Betterbond is a home loan originator and submits thousands of home loan applications every month on behalf of their customers and so Jenny is well positioned to give us tips on how to get a home loan.
Getting a home loan to buy a house is a very important step for most families. Since hardly anyone can buy a house for cash, most of us need to approach a bank for a home loan. If you don’t qualify for a loan at all, or can’t get the size loan you need, Jenny suggests doing a proper budget where you clearly note all your earnings and expenditure. If there is not enough room to service the debt on a home loan, she suggests reducing your current debt as much as possible and reducing any other unnecessary monthly expenses so that your cash flow looks healthy.
Just as important is to make sure that you don’t take on too much debt. Make sure that you can still make your repayments even if the interest rates go up, or if life happens and you have unexpected expenses in a month. Try to get the best deal you can on interest rates as this will have a huge impact on the interest you pay every month.
Disclaimer: Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Service Provider. This material is not intended as and does not constitute financial advice or any other advice and is neither exhaustive nor prescriptive. It does not take into account your personal financial circumstances. Your financial adviser will assess your financial situation and needs and assist you to draw up a plan to help you achieve your financial goals. The views expressed by the contributor are his or her own (as an independently registered financial services provider, financial adviser or other independent capacity), and not necessarily endorsed by Old Mutual (as a separate financial services provider).
Join us on twitter for real conversations about family finances:

• @FamFinanceShow
• @DianaGranoux

Website:
www.familyfinanceshow.com
Subscribe on your favourite podcast platform:
https://podlink.to/FamilyFinanceShow

Advocate Monica Moodley joins us to give her perspective on wills. Everyone, at all stages of life, should have a will. If you die without a will, your estate which is defined as the assets (or debt) you own at time of your death, will be distributed in terms of the Intestate Succession Act.
Monica explains the requirements for a valid will, and when you should consider getting legal advice to create a will. If you have children, it is even more important to have an up to date will, that includes instructions for the child’s legal guardian.
Your marriage regime (whether you are married in or out of community of property and whether accrual is applied) has a significant impact on your will and estate. Also important to note is that retirement funds are treated differently from your estate, and are distributed according to the trustees decision. Monica explains what happens if you die with debt and the difference between a living will and a regular will.
Disclaimer: Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Service Provider. This material is not intended as and does not constitute financial advice or any other advice and is neither exhaustive nor prescriptive. It does not take into account your personal financial circumstances. Your financial adviser will assess your financial situation and needs and assist you to draw up a plan to help you achieve your financial goals. The views expressed by the contributor are his or her own (as an independently registered financial services provider, financial adviser or other independent capacity), and not necessarily endorsed by Old Mutual (as a separate financial services provider).
Join us on twitter for real conversations about family finances:

• @FamFinanceShow
• @DianaGranoux

Website:
www.familyfinanceshow.com

Subscribe on your favourite podcast platform:
https://podlink.to/FamilyFinanceShow

If there are two people that love going on holiday the most, it’s Warren Ingram and I! Unfortunately holidays don’t come free, so this episode deals with how to save for holidays. I am sure that almost everyone has a favourite childhood memory of a holiday taken with friends or family, or maybe even a school trip. Holidays make a huge impression on us, as children and as adults.
As Warren points out, spending money on shared experiences makes us happier than anything else we could spend money on. Family holidays are an important way to make memories and strengthen family bonds. Travel also enhances your child’s personal development and independence. For all these reasons, and more, family holidays are a worthwhile goal to save for. Warren offers these tips for savings for your dream family holiday:

• Make your older children part of the planning process.
• Decide which kind of holiday suits your family.
• Understand how much this holiday will cost.
• Set your joint savings goal, with the entire family, at the start of the year.
• Put aside money on a monthly basis, and track your progress against your goal. This may involve making sacrifices as a family, for example, eating less takeout.
• Save into a money market or mortgage account since this is a short term savings goal.
• Take your dream holiday when you reach your goal!

Disclaimer: Old Mutual Life Assurance Company (South Africa) Limited is a Licensed Financial Service Provider. This material is not intended as and does not constitute financial advice or any other advice and is neither exhaustive nor prescriptive. It does not take into account your personal financial circumstances. Your financial adviser will assess your financial situation and needs and assist you to draw up a plan to help you achieve your financial goals. The views expressed by the contributor are his or her own (as an independently registered financial services provider, financial adviser or other independent capacity), and not necessarily endorsed by Old Mutual (as a separate financial services provider).
Join us on twitter for real conversations about family finances:

• @FamFinanceShow
• @DianaGranoux

Website:
www.familyfinanceshow.com

Subscribe on your favourite podcast platform:
https://podlink.to/FamilyFinanceShow