Archive | July, 2014

Start saving now for your retirement… it all counts in the end

Retirement savings illustrated…
After 40 years of saving (started at age 25), Sifiso will have sufficient savings to last him 39 years in retirement, whilst John – starting 10 years later (age 35) – will have only 17 years of provision. Theo is the worst off. Despite saving regularly for 20 years, he will only have the equivalent of 7 years of salary at the age of 65.

If John would like to be in the same position at the age of 65 that Sifiso will be in (i.e. 39 years of retirement provision), he will have to increase the percentage he saves from 15% to 34% over the entire course of 30 years that he will be saving.
If Theo would like to be in the same position at the age of 65 that Sifiso will be in (i.e. 39 years of retirement provision), he will have to increase the percentage he saves from 15% to 85% over the entire course of 20 years that he will be saving.

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Petrol price questions

A QUESTION many ask with regards to the price of petrol in South Africa is: since Sasol produces its own fuel from coal, why can they not sell petrol to us at a lower price? One source found states that Sasol Synfuels (SSF) produces roughly 30% of the country’s fuel from coal, the remainder is produced via conventional crude refineries and so relies on the importation of crude oil. Regardless of the amount of fuel SSF produces, its price is regulated under the Petroleum Products Act 1977 (Act No 120 of 1977). Therefore, Sasol cannot sell it at a price different to the regulated retail price.
The regulation of the retail price of fuel under the Petroleum Products Act, as amended in 2003 and 2005, means that the petrol pump price at all service stations in a pricing area must be the same, and no discounting – of any form – to the end consumer is allowed.

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Retirement advice…

HOW many people know about our retirement crisis? Not many, it seems. Many people expect to live in “reduced” circumstances when they retire and aren’t sure of how to change this. National Treasury is very concerned and has embarked on a retirement reform process that will gradually change the face of investments for consumers.

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Internet Evolution; Superconnection

NOT long ago cloud computing and “bring your own device” to work began to change the way businesses and individuals used technology. This is now expanding to include the concept of the “Internet of Things” (IoT). IoT is described as a network of devices, or “things”, that have embedded technology to enable them to interact with each other. It includes objects or devices like security systems, thermostats, electronic appliances, lights in homes, medical devices, alarm clocks, cars and vending machines.

IoT can, for example, connect a machine that captures your blood pressure with your doctor’s smartphone.

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Wreckless borrowing and spending

The National Credit Regulator (NCR) came down on the “R699 vehicle scheme” this week for its failure to disclose the full cost of credit in its advertising – and at the same time announced that it is investigating the scheme to establish whether vehicle owners were granted credit in accordance with the National Credit Act.

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