For many wealthy individuals the beginning of the year serves as an opportune time for personal introspection making it the ideal period to review financial goals and strategies for dealing with the challenges of growing and preserving wealth in a volatile economic climate.
CEO of FNB Private Wealth and RMB Private Bank Eric Enslin says high net worth individuals take into account a variety of economic, regulatory and investment factors as well as family and career aspirations when planning for the year ahead. Advisers are required to thoroughly assess the state of their clients’ long-term wealth growth, while guiding them on how to overcome and understand some of the key issues and trends. Enslin has identified four industry trends affecting high net worth individuals that advisors should take into account when reviewing long term wealth strategies. Fintech The rapid growth of fintech should not be seen as a threat to advisors, but rather an opportunity to tap into innovation through the use of tools, analytics and technology to better understand and efficiently cater for the dynamic and ever changing needs of high-net worth individuals. Click to read more If you would like to know what is the right investment option for you, please contact Kevin or Thato, email: [email protected] tel no: (011 658-1333) Source: Coronation
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At various stages of one’s life, financial needs may differ. For this reason it is important to change financial strategies and instruments used to fulfill those needs. The investment behaviour of women differs to that of men. Women often feel comfortable with “secure” and “predictable” investments, explained Christelle Louw, advisory partner at Citadel. “The problem is that these investments mostly do not offer the required performance after inflation and tax to achieve their financial goals,” she said.
For this reason, equities are becoming an important element to include in their portfolios. This is also true as women become more sophisticated investors, with surplus income to invest. Over the past few years women have been playing a bigger and more prominent role in business and their earnings are increasing. This is contributing to their empowerment. The global income of women will grow from $13trn to $18trn over the next five years worldwide, according to the CFA Institute. Women are also living longer than men. According to the World Health Organisation's 2015 data for global life expectancy, women will live five years longer than men. More women are seeing the need for inflation-beating investments to sustain their lives once their partners are gone. “It is important to ensure that they have made financial provision beyond the life expectancy of their husband or male partner,” said Louw. Click to read more To review your investments and to ensure they still meet your needs, please contact Kevin or Thato, email: [email protected] telephone: (011)658-1333 Source: Fin24 The past 12 months seem to have passed particularly swiftly, maybe because fundamentally very little changed. Interestingly, the light in which investors view this unchanged reality is very different: the colour has changed from red to cool white. A year ago investors were desperately seeking ways to take money offshore with the rand trading at R15.60/US$. The rand is now trading at R 13.60/US$ and this quest has gone quiet. This is counterintuitive: surely a dollar at R13.60 is a better investment than a dollar at R15.50 if the fundamentals are the same? The deficit on the current account is similar to a year ago, the fiscal position unchanged and, if anything, the probability of President Jacob Zuma leaving office early has lessened despite ever-more damning evidence of corruption and mismanagement in the ruling party. People have just chosen to worry about these issues a bit less. Maybe the level of concern is normal now and was too extreme in December 2015/January 2016.
A similar picture can be drawn in the commodity markets, where, against all expectations, prices for some industrial commodities have doubled or tripled over the last year. In fact, the risks to Chinese demand, which is basically the only thing that matters in the commodity world, have increased, with debt levels rising and the number of vacant Chinese apartments only growing. The importance of a rational approach The examples above indicate why it is so important to keep a level head and take a long-term approach when investing. A clear view of an asset’s value allows the calm investor to make rational decisions, while others are panicking or getting over excited about current events. Click to read more To find out more information on the different investment options we have please contact please contact Kevin or Thato, email: [email protected], tel no: (011 658-1333) Source: Allan Gray What is it?
Tax Free Investments were introduced as an incentive to encourage household savings. This incentive is available from 1 March 2015. How will it work? The tax free investments may only be provided by a licenced bank, long-term insurers, a manager of registered collective schemes (with certain exceptions), the National Government, a mutual bank and a co-operative bank. Service providers must be designated by the Minister in the Gazette. As per the current Regulation, only the above are designated. This is how it will work:
How much do you really know about the inner workings of your medical scheme? Here are some quick facts on open medical schemes in SA. Whereas each scheme will readily provide you with the facts on themselves, not everyone has the time or the patience to do a comparative study. Fortunately, Alexander Forbes Health has done it for you in their Diagnosis 2016/2017. Some additional information comes from the Council of Medical Schemes.
Find out here what the facts are on open medical schemes in South Africa:
The Reserve Bank held interest rates steady, as widely expected, on Tuesday, at the monetary policy committee’s first meeting of the year.
While economists have cautioned against calling an end to the tightening cycle and the start of lower interest rates — especially after consumer inflation came in at 6.8% last week — they did not expect an increase. Tuesday’s decision left the repo rate unchanged at 7%. The Bank has raised rates by 75 basis points since the start of 2015, and by 200 basis points since January 2014. The last rate increase was 25 basis points in March 2016, and followed a 50-point rise in January 2016. Forecasts Bank governor Lesetja Kganyago said the Bank was forecasting economic growth of 0.4% for 2016. That would pick up to 1.1% in 2017, and 1.6% in 2018. Those forecasts compare with the November outlook for 0.4% growth in 2016, but downside risks remained to this number, 1.2% in 2017, and 1.6% in 2018. On inflation, the Bank is forecasting CPI to average 6.2% year on year in 2017 and 5.5% in 2018. In November, its inflation outlook was for 5.8% in 2017 and 5.5% in 2018. The Bank expects that inflation peaked at 6.6% in the fourth quarter of 2016, and should return to within the target band in the final quarter of 2017. Core inflation, which measures inflation excluding energy and food prices, is expected to average 5.5% in 2017 and 5.2% in 2018. Source: Business Live It’s always a good idea to review insurance policies at least once a year or when there’s a material change in lifestyle. The start of the new year is a good time to take stock of life, including critical illness, disability, home, motor and healthcare covers and ensure that these policies are still meeting the needs of the policyholder.
“A financial advisor has the experience and qualifications to make sure you spend wisely and get the insurance coverage that most closely matches your needs,” explains Saks Ntombela of Hollard. “Just like in any crisis, when the time comes to claim you want the confidence that all your bases are covered. When you think about it, insurance is there to protect what you value the most. Given their importance, you don’t want to make decisions that could compromise any of them,” adds Ntombela. Consider these handy tips:
Written: Risk SA To get a quote and cover that will be sufficient for you please contact Sandy in our Short – Term Department, email [email protected], tel (011)658-1333 Source: Risk SA |
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