It’s going to take more than a good plan and discipline to cope with the financial impact of this lockdown. Some of us are lucky to retain all or some of our income, but for many of us this period is a financial catastrophe. There is no good news, no upside, no silver lining. We are in crisis mode and the goal is survival.
In this week’s episode we think through some lesser-of-two-evils scenarios. Should you take a loan repayment holiday? Should you sell an investment or take on debt? Should you borrow money from the bank or your family?
I wish we could offer some hope or some solutions, but for the moment all we can offer is how to make the best of a bad situation.
Pieter
I have all my cash in my access bond, with the exclusion of about a week's worth of expenses. I realized with ABSA, every time there is a rate adjustment they recalculate the payment to the same term. That’s the outstanding balance, including the money you stored in your access bond.
I’ve been calculating what I should have been paying all along. I pay that over to an investment account. The idea is once that’s enough to clear the bond, we’ll do that. In the meantime we’ll see when that happens if we'll do it or continue to grow the investment.
Celma
I have a little flat that I rent out. I declare that and I claim a portion of my electricity, services etc and give SARS what is due to SARS.
I also have a few investments and pay fees on the administration thereof. This is a substantial amount of money. Just as me paying for electricity, water, providing wi-fi enables me to make the money on the little flat, paying the admin fees on the investment enables me to grow my savings. I want to deduct the fees as a taxable expense and I am hitting a concrete wall. I really don't see the difference in the expenses as it both has the same result.
Will really appreciate it if you could assist by explaining this to me or tell me who I need to contact to try and rectify what I view as double standards.
Henk
My parents (64 & 72) have been advised that they shouldn't open a TFSA because they are too old and it won't help them. Is this correct?
Combined they have a portfolio of property, share portfolios with various finance houses and trusts which they obviously don't want to donate to the tax man.