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
As an advisor to the South African Investor board I deal with investors that are looking for long term returns that'll help them live, and retire securely.
That means we typically look at companies like Vodacom, Naspers, Bidvest and the like.
Large blue-chip shares that have been around for years, and will continue to be there for years to come.
Recommending these large companies is th... ››› more
Do you know the difference between minimum investing and low-cost investing?
Well, most investors would usually say they're the same thing. But this is far from the truth.
Low-cost investing deals with the investments associated with investing your money, while minimum investing implies the least amount of money you can invest.
In fact, failure to understand this can actually lead to... ››› more
Even though South Africa managed to dodge the downgrade bullet last week, the risk of recession, higher interest rates and a lack of foreign funding still plagues the South African banking industry.
But larger fund managers like PSG Asset Management have recently been adding banks to their portfolios. Surely this is a mistake under the current challenging market environment.
Well, let's ta... ››› more
Irrefutable evidence that penny shares are simply the single best investment class for any South African investor.
There's no doubt I'm a penny share fan.
But just in case you had any doubts at all about the wealth-building potential of penny shares…
Check this out...
Just suppose in 2006 you inherited R15,000...
So you decided to put it to wor... ››› more
When you decide to invest in shares, most investors find it easier to find a strategy that yields results and stick with it.
Two popular investment strategies are value investing and momentum investing.
So how do these investment strategies work? And which one is better?
Read on to find out…
Two completely different investment strategies
Value investing involve... ››› more
Over the long sweep of your investing lifetime, strategies that only work extremely well in certain market situations are unlikely to play a dominant role. The big secret therefore is something you can use all the time, for your entire life, as an investor. And here it is: Some companies are much better than others at compounding capital. Much better. Read on to find out more…
If your goal as ... ››› more
The Forbes' 2014 Investment Guide came out two weeks ago. And amongst some of the ideas included in the guide were some gems. And you can apply them to you own investing. Read on to uncover what two of the best investment ideas for 2014 are...
In the recently released Forbes’ 2014 Investment Guide, there were some ideas that you should ignore, Alexander Green in Investment U explains…
But... ››› more
Last week, three American economists won the Nobel Prize for economics. One of the prize winners, Eugene Fama was rewarded for his work that showed the stock market is highly efficient at pricing in all available information. But investing greats like Warren Buffett have shown that you can beat the market. Read on to discover how you can beat this Nobel Prize winning investment strategy...
Okay,... ››› more
Ready to retire? Not so fast. Sanlam's Benchmark Symposium, which it'll release on 14 May, shows levels of saving for retirement continue to be low. So low, in fact, that Moneyweb says the average retiree depletes his retirement lump sum in just three years! Here's how to make sure you're saving enough to live comfortably long into your golden years…
Most people look forward to retirem... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.