As we draw towards the end of the year, a number of pre-budget seminars have been held in preparation for the final 2020 National Budget. As expected, there are significant resource requirements being demanded by government ministries. However, the main constraint is that the country’s tax base remains lean. But the question is; Why bother about the upcoming 2020 National Budget?
From a personal finance perspective, there is every reason to be bothered. While the government can mobilise resources through loans and grants, the main revenue stream is through taxes. There are a number of tax categories that directly impact household incomes, and these include Value Added Tax (VAT), Capital Gains Tax (CGT), Dividend Tax (DT) and the new Intermediated Money Transfer Tax (IMTT). It is therefore crucial to understand how developments around taxes can affect your personal finances. However, it will require a good advisor so help assess any implications and make informed decisions.
Piggy has been recommending folks to take advantage of opportunities in the market by buying into undervalued stocks. However, this also requires one to have good advisors that work in the best interest of clients. So, how can one identify the right stock broker? Here is what to look out for;
Professional advice. There is need to look out for a brokerage that provides excellent recommendations that are unbiased and geared towards the best interests of the client;
Quality service. The quality of service for both large and small account holders should be the same. In other words, both types of customers should get red carpet treatment. Further, brokers should take time understanding an investor’s risk-tolerance level;
Help with calculating your taxes. As a value-added service, brokers should assist in determining the amount of taxes owed by the investor;
First choice in IPO offerings. Good brokerages should always inform their customers about new initial public offerings (IPOs) so that customers can get in on the ground floor (the first stage) of a potential investment opportunity;
Access to other investment options. Some affluent investors may also need help managing other assets and investments in private companies or partnerships and shown below;
A little peace of mind. Brokers are paid to watch for changes in the market so that investors do not have to;
Brick & Mortar offices. Some investors may still need to visit their brokers face to face to feel comfortable. This can also encourage investor trust; and
Innovation. The world is changing, and technological trends are evolving. Good brokerages are consistently re-inventing new ways of interacting with clients while improving customer service. Piggy recommends Morgan & Co. The brokerage recently launched a Research App that offers interaction between the capital markets and investors. The App has a unique Investor Relations function that provides access to management teams of all listed counters. Institutional and retail investors also have access to economic and market intelligence reports, results review flash notes as well as company specific research reports. Other products include industry reports, thematic research reports, macro-economic and equity strategy reports. The App also gives access to Morgan & Co TV, that is, video clips of CNBC Africa and Business Day TV Economics & Market Insight Interviews. The App is downloadable on Google Play and App Store as illustrated below;
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