Last Friday, ratings agency Moodys dropped their outlook for SA debt from stable to negative. This means within the next 6 to 24 months it's likely we'll see the last of the three major ratings agencies cut our government debt rating to junk.
As an economist, I am now all but certain the downgrade will happen. SA will become a junk status borrower.
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Meet Joe - a 60 year old man with pension savings of R3 million.
Like most pensioners, Joe's greatest fear is he'll run out of money before he dies.
After all, most retirement products only plan to look after you for 20 years.
Since South African men and women have a 50% chance of living beyond 83 and 87 respectively (the age most retirement plans work on for each gender), running out of... ››› more
With business confidence in SA at its lowest in twenty years. And investors losing patience waiting for the sun to rise for the “New Dawn”, we're seeing more and more people taking money offshore.
While most people taking money offshore won't be aware of foreign inheritance taxes, they are creating a potential estate liability problem for their heirs. USA and UK inheritance tax can be as ... ››› more
Last week the Repo rate jumped more than 400%.
Now, I'm not talking about the South African rate which is set by the South African Reserve Bank.
I'm talking about the “real Repo rate”. The US one, which affects over trillions of dollars' worth of transfers each day.
This rate, which is normally just over 2% spiked up to 10% last Tuesday (17 of September) as global lending markets s... ››› more
Markets have been incredibly skittish over the last week.
And, while there are many reasons for concern, one of the main issues driving share prices lower is fear over the “inverted yield curve”.
If you skim the financial news, you'll see headlines like:
“Yield curve inversion hammers US small banks”
“Bond market yield curve inverts, signalling Fed may be too slow to cut... ››› more
If you're approaching retirement, it's likely this question is keeping you up at night.
It doesn't really matter if you're wealthy, comfortable or just making ends meet. When you get to retirement age the world changes.
In the course of my life I've worked with high-flying executives living what can only be described as “the dream”. Owners of multiple businesses, in multiple countries.... ››› more
Almost everyone dreams of retirement as a time of peace and relaxation but, in reality, the retirement process is probably the riskiest financial event in your life.
There are two main reasons for this.
Firstly, the decisions you make today will decide the quality of the rest of your life.
Secondly, it is virtually impossible to recover if you make a mistake. By definition this is as r... ››› more
If you're in your 50's you might have heard of ‘prescribed assets' before - for millennials this term might be ‘foreign'.
But it is very actual - in fact it's from the 1980's and it was part of the Apartheid government playbook.
In short - the government back then forced pension funds through legislation to invest up to 77.5% of their funds into parastatals and government bonds.
No... ››› more
I'm only 28 but I'm not like most under 30s…
I constantly think about my future retirement nest egg. And its most likely because I've worked in the investment industry for eight years and surrounded by a lot older colleagues.
I've also been lucky enough to attend a lot of our global investor conferences where I got to chat to people a lot older than me… People either preparing to retir... ››› more
Let me ask you a serious question…
How many of you believe you have enough money to last your retirement?
Well when you consider that over 50% of South Africans aren't confident they will be able to draw an income in retirement, I'm going to assume not many of you.
You see, a standard retirement annuity is simply not enough to generate the income you need, for the retirement you want... ››› more
Imagine this… You could've bought Capitec shares at R26 a share in 2008.
In the past year, the company paid investors R15.75 in dividends. That means 60.50% growth on your original capital JUST FROM DIVIDENDS.
If you add up all the dividends since 2008, investors received R69.88 in dividends. That's 268% growth from dividends alone.
In fact, a study of dividends and returns on shares... ››› more
Last week, I explained the power of income investing.
And how it can boost the overall performance of your portfolio…even in the worst of times.
I also revealed (in short) some of the best ways to start generating an income for your portfolio.
Today I'd like to delve deeper into one of those income investments.
The reason why, is because they offer more income than a normal share... ››› more
With just 12 days left of the tax year and the budget speech next week, this is the time of year, that you should be evaluating your investments and retirement savings and maxing them out as much as you can.
While many people know they should be saving more for a rainy day and retirement, most of us are not. Using a few tax incentives can assist you a great deal now and years down the line.
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What would you prefer? A pay out of R5.5 million the day you retire, or lifetime guaranteed income of R46,772 per month every month till you pass away.
If you started saving R300 per month towards your retirement in 1978 (roughly 7.5% of the average household income back then) you'd sit with exactly that choice today…
So what's the best choice? How do you ensure that your money lasts you a... ››› more
On 4 May 2018 RECM and Callibre (JSE: RACP) announced that it is offering to buy out investors in Astoria shares (JSE: ARA).
Astoria shares traded at R11.71 that day, and RACP offered R13.50 per share.
That's a quick 15.3% gain investors can make, nearly instantly.
But is this a good deal, and should investors accept it?
SA’s new energy law could help make you 120% in the n... ››› more
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