According to a retirement round table hosted by the CFA Society and the Financial Planning Institute of Southern Africa, only about 6% of South Africans can maintain their standards of living when they retire.
And, based on the Global Retirement Index, South Africa is among the worst 8% of countries in the world to retire in. That's because state healthcare, social security and a number of oth... ››› more
Tax year end is fast approaching.
This means, next week Wednesday, your tax breaks for the 2017/2018 year will expire.
Fortunately, it's not too late to maximise all your benefits before you lose them.
But don't worry, because today I'm going to show you how to do this…
Three tax breaks every investor receives
As a private investor you receive three main tax breaks:
... ››› more
A week ago I was nearly convinced low-cost RA's are the way to go. I read a well written article on the web, promoting the virtues of low-cost RA's.
The article uses the following example:
Someone has saved R3 000 every month for 40 years into a retirement annuity (RA), and earns a return of 6.5% above inflation.
If you pay an investment fee of 3% you'd end up with R3 million at the end ... ››› more
Where is, the Rand going?
The biggest surprise last week came from the Rand which strengthened another 2,3% against the US Dollar and 3% to the Pound. This put Rand hedge stocks under pressure and the Resources Index fell 2,7%. The JSE Top 40 index was down 1,5%.
The Dow Jones Industrial Average rose 1,8% and the S&P500 1,5%, touching new highs. European markets were firmer but m... ››› more
Before we jump into what the market did and what you should look out for this week, I would like to mention a few interesting retirement articles you should consider reading.
This week's Business Times had some excellent articles by Laura du Preez on Retirement Planning, take note of the following:
New disclosure of RA costs is highlighting rampant abuse in this area
How a ... ››› more
It's never too early to start planning for retirement. And this means thinking somewhat differently about retirement planning for your later years.
Have you ever stopped and asked yourself these questions?
1. How much will I need to save for retirement in order to live comfortably?
2. What are my retirement goals?
3. When should I start?
4. What should I do?
5. What costs might I... ››› more
We had a good week for our short-term trades.
• Sasol for a 6.71% gain
• Vodacom for 10.33% gain
• Sibanye for a 30%
All ungeared, see position updates below.
Paying too much for your retirement savings?
The weekend press has again highlighted the impact of costs your retirement savings. Most older policy are paying the industry norm of 3% and higher. It’s a littl... ››› more
I probably learned more from my mother's retirement experience than anyone else's. When she retired, she wanted security, lived austerely, but had no idea whatsoever of enhancing value.
And therein lay the disaster. My mother sold her home, moved into a seemingly more secure rented complex, and placed all financial resources into a low interest bearing building society account in an extremely h... ››› more
Last week's sentiment remained positive and markets continued their rally. President Trump's first days in office are being closely monitored and provide plenty for traders to digest.
The JSE Top 40 closed the week up 0,8%, but retreated slightly on Friday along with generally softer developed markets; for the year to date the JSE is up 7,7%.
Kumba rallied 27% after it provided a product... ››› more
Investors will search high and low to discover the real secret to what generates wealth in the long term.
Today I'm going to tell you the answer is simple.
Professor of Finance at the University of Pennsylvania and well-known market commentator, Jeremy Siegel did a comprehensive study to discover the best investments over 188 years.
And what he found proved, that one particular asset outp... ››› more
You won't have enough money to retire.
I know I sound like the harbinger of doom, but it's a reality that you and most South Africans need to face up to.
Now you might be asking, why am I saying this about you? Well, I am only looking at the statistics.
The Financial Planning Institute of South Africa says less than a quarter of South Africans can afford to retire. If you think that's ... ››› more
According to biomedical gerontologist, Dr Aubrey De Grey, the next person to live to the ripe old age of 150 has already been born.
What if that's you?
What if you live till 80 or 100? Will you have enough money to last you that long after you retire?
Ten or twenty years ago, collecting your last paycheque at the age of 65 was a reasonable expectation. But as life expectancy and the co... ››› more
I know that most investors love dividend paying shares. After all, great dividend paying companies give you a steady flow of passive income that you can either spend or reinvest.
This makes dividends an attractive choice for those nearing retirement because it helps you to score additional income from your investments.
But that doesn't mean you should rush out and buy any dividend paying s... ››› more
There are so many things you need to consider when planning for your retirement.
Of course, there's the obvious retirement planning concerns, like how much you earn and how much debt you have but there are other factors that could leave you scrambling around trying desperately to build up your retirement savings.
To help you prepare for your retirement, I've found 20 of the most common ret... ››› more
“The rand could hit R60 to the dollar by 2019: Chris Hart” - Business Tech
“Chris Hart: Nothing can prevent SA's slide to junk” - Fin24
I spoke to Chris about his recession and junk status predictions at the South African Investor member meeting on 24 May 2016. I asked him if he was misquoted in the media. However, he was adamant that he is right about these predictions.
One of the... ››› more
For decades, retirement investors handed over control of their finances to someone else to squeeze as much as they can out of their retirement annuities (RA). If you're doing that, then you know it means accepting mediocre returns and paying high management fees.
But there's a little-known ‘new generation' RA that lets you customise your investments. In fact, you now have full control over ... ››› more
Right now there's an investment you've probably forgotten about. I'm not talking about your equity portfolio, your government bonds or even your retirement annuity.
I'm talking about a specific investment that will either contribute greatly towards your retirement or leave you struggling to make ends meet when you stop working.
You might have forgotten about this investment but right now, i... ››› more
Have you ever asked yourself, “Will you live as well as your parents did when you retire?”
That's a question thousands of South Africans ask themselves everyday when they reach retirement. The sad truth is, the answer is probably always, “No, I won't”
And, it's no surprise...
You know the statistics that say, only a quarter of South Africans will retire comfortably. The rest wi... ››› more
If you know just a few simple tricks you can take control of your own retirement back from your financial advisor - and save a small fortune in fees at the same time. Today, Aiden Sookdin speaks to the experts and explains exactly how to set up your own fool-proof retirement savings plan - DIY style. It's a lot easier than you may think. Just follow this simple four-step plan and you'll be well on... ››› more
Eskom's admitted that it's struggling to keep the lights on. Existing power stations don't produce enough power to support demand.
The coal industry and leading mining media are not convinced that Eskom will get enough coal to run its power stations.
When this happens, the blackouts we know so well will get worse. And we'll be paying Eskom even more because tariffs are constantly increasing.... ››› more
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