Times may be challenging but that is no reason to take the "festive" entirely out of the season this year. Experts say it is possible to have all the cheer without a budgetary hangover. But for the lucky few who are getting an annual bonus, this is not the time to blow it on luxuries. Philip Faure, global head of wealth and investment at Standard Bank, says: "The current economic environment is tougher and, on balance, bonuses may be lower. "Most markets are overpriced and offshore equity is preferred. But the best return currently is in your mortgage bond. You get a risk-free, after-tax return equal to the interest you are paying." If possible, says Faure, "pay off your debt first. Start with the most expensive — your home loan and credit cards, then your car. It is still an investment." He advises that people also use spare cash to build up their retirement savings. "You can contribute up to 27.5% of your annual earnings, or R350,000 maximum, to retirement savings. "A bonus is gen...
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