Tax Free Savings Accounts (TFSAs) are one of the most underappreciated investment vehicles in the country. So, it's rather difficult to understand why most people still don't use them. They're one of the only tax efficient vehicles that come with almost no negatives.
What is a TFSA?
It’s an investment vehicle in which all income or growth on investments held inside are tax-free. This includ... ››› more
Q. “I'm looking to invest in different local ETFs other than shares and indices. What are your top local ETFs you're mainly investing and trading this year when it comes to South Africa Timon?”
A. In 2021, it's important to look at the most cost effective, easy to find and highly traded ETFs when it comes to investing and trading…
Just a reminder, an ETF is an investment vehicle that... ››› more
For most South Africans their Retirement Annuity (RA) is something they think about twice in their life. First when they sign up for their monthly debit order and second when they're getting close to retirement and need to access the money.
In between, your cash is likely spread across a selection of unit trusts that are largely based on the JSE.
For offshore investments (which usually get a... ››› more
Odds are you have a pension fund, or money invested in a retirement annuity.
For good reason - we all need to prepare for retirement. And the tax benefits are a great benefit to these retirement funds.
But if you're planning on emigrating - even if it is something you've got planned for your distant future, you should listen up…
Come March 2021 and your plans could become considerabl... ››› more
Many investors rush for the exit at the same time, causing a whip-saw effect in asset prices.
The Rand is particularly vulnerable to this as one of the major currencies.
Emerging market (EM) investors can use it as a proxy for less liquid EM currencies, and use it to hedge as it has the benefit of straddling trading hours in parts of Asia and America.
There are two ways for you to get ... ››› more
It was quite a week for airline stocks.
It started with the announcement from Warren Buffett that Berkshire Hathaway had sold stakes in four major US airlines: United, Delta, Southwest and American Airlines.
This is an exceptionally uncharacteristic move from the legendary value investor.
Firstly, Buffett is all about “buy and hold”. He rarely sells investments unless, the prospect... ››› more
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
Q. "I've seen that REITs have become widely spoken about in the news lately, since the Federal Reserve decided to cut the interest rates by 25 basis points to 2%. This has sparked my interest to look into investing in REITs. Timon could you explain briefly what a REIT is, how they work and why the drop in interest rates have attracted investors into buying them?”
A. REITs (pronounced R... ››› more
Last week we discussed how after a national SA election there is always a rally on the JSE in the following 12 months.
If you missed the article, you can catch up here.
In today's article however, I would like to follow up and explain why I expect a strong rally despite the carnage that is taking place in the international markets.
Recommended:
_... ››› more
The elections have once again come and gone.
I trust that you made your contribution to the country, which has left a memorable mark on your thumb which could help define our future.
Talking about voting, I was curious to see what effect the elections have had on the JSE over the last 17 years.
In today's article I want to discuss, two main points which you might find lucrative for yo... ››› more
During the first quarter of 2019, my Red Hot Storm Traders banked two winning gold trades: A 47.77% gain in January and a 41.06% gain in February.
This was all because gold was above a critical level, which confirmed it was in a strong uptrend.
What's exciting is that, now we have an even bigger opportunity to continue profiting from the gold upside in the second quarter of 2019…
... ››› more
Dear reader,
Earlier in 2019 I wrote about Palladium – telling investors the metal had just hit an all-time high. At $1,434.50 palladium had run 70% in the preceding months.
However I told investors that at these heights I wouldn’t put my cash in the metal but rather in a miner that produces the metal.
Since then Palladium hit $1,560 mere dollars off the tar... ››› more
Normally I answer your burning trading questions in the Q&A articles I send out on Wednesdays.
However, last week I was asked a very interesting question, which I thought was too good to answer briefly.
The question asked by a loyal member went like this.
"I want to be able to sustain my life going forward because I trust and believe in the platform you... ››› more
Let's just get it out of the way immediately, Naspers is a great company.
It really is.
I am in no way a Naspers bear. But I am a cautious bull.
I do not, for one second, think Naspers will pull a Steinhoff, Mediclinic, Aspen, Tongaat, [insert other JSE listed entity] on us anytime soon.
But I am still underweight on the stock for some very fundamental investment reasons. And, given t... ››› 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
Q. “I would like to start trading a demo account, but I have no clue what to do and which companies to trade this year.
Can you please help?"
A. Fortunately we have a few recommended brokers who offer demo accounts to start trading.
As for the 'best' companies to trade this year, this depends on what your criteria is, and what would work with your tradi... ››› 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
We all like to make a lot of money. It's human nature.
Take investing for example…
People tend to invest most of their money into stocks. Why?
Because stocks are usually the best place to put your money for the highest and fastest growth.
But by doing this, investors sometimes ignore or underestimate the importance of income investing.
Here's what I mean…
... ››› more
At first glance investing seems inaccessible, confusing and sometimes even scary.
But the concept really is simple - investors (like you) buy small pieces of companies called shares.
The amount of money you make will be based on how well the company's share price does, and whether it gives you any share of the profits it makes (called dividends).
... ››› more
On 18 July 2018, I told readers that buying an annuity at retirement was a more secure way to ensure you don't run out of money. Rather than taking a lump sum and managing it yourself.
Following this article, I received the following letter from G:
“Francois,
I read your email regarding retiring with R5.5 million and receiving a monthly income of R46,777 guaranteed for life.
I just d... ››› more
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