Website: www.daberistic.com Email: invest@daberistic.com Tel: 011 658 1333/1391 Dear Client / Business Associate Compliments of the News Season In our first edition of Investment Focus 2016 we plan ahead for the year on how to handle Investments, the article on Best direction for your investments in 2016 gives a guide on the market share and which markets to target as well as how the past five years’ share performance and current valuation of five well-run rand hedge companies versus five well-run SA Inc companies listed on the JSE. The one thing that is the hottest news in South Africa currently is, the New Tax law in regards to Tax incentives, with National Treasury encouraging us to save more for retirement by significantly increasing the tax incentives, the article More for the future you, less for the tax man is able to clearly explain the new Tax law. Our articles on 2015 Asset Class Total Returns - Listed Property the best performer in a volatile year, Prudential December Fund Fact Sheets help us look back at how markets performed in 2015. We hope that 2016 be a great year with great Financial return for all our Clients ….All the best Best direction for your investments in 2016 It may come as a surprise that, when viewed from a foreigner’s perspective, the JSE All-share index has not increased in US dollar terms since October 2007. In rand terms, the prices of local equities more than doubled over this period. It’s also worth noting that since 2011 our local market has underperformed the world’s developed markets, as measured by the MSCI World Index, by 119% as the rand depreciated from R6.61 to R14.20 per dollar. Given the rand weakness and superior performance by developed market equities, our clients regularly ask us whether they should take more money offshore. At our client roadshow in early 2011, we advised clients to shift their portfolios towards developed market shares given the over-valued rand at the time and relatively attractive valuations of these markets. This was met with some reluctance given that South African shares had outperformed developed markets by more than 500% over the previous decade. The superior economic growth prospects of emerging markets relative to the developed world were also emphasised, while many investors remembered the painful consequences of moving money offshore at the worst possible time after the rand collapsed in 2001. Recent experiences and performances influence investor sentiment, but our investment philosophy takes us back to valuation/price as the primary consideration for investment decisions, while taking account of the prevailing trends and perspectives in the market. In line with what we have advocated since 2011, our asset allocation portfolios have invested the maximum weight in offshore markets that prudential legislation allows. In our equity selection, we have tilted our portfolios towards ‘rand-hedge’ companies that derive the majority of their earnings offshore and away from so-called SA Inc companies whose fortunes depend on the domestic economy. This has benefited portfolio performance, but we continuously reassess our positioning. The table below shows the past five years’ share performance and current valuation of five well-run rand hedge companies versus five well-run SA Inc companies listed on the JSE. Click here to read more Please contact Kevin or Thato, email: [email protected], if you have any queries about investments Source: Finance24 More for the future you, less for the tax man The tides are changing in the retirement savings space, with National Treasury encouraging us to save more for retirement by significantly increasing the tax incentives. This is one of several important changes that will go ahead from March this year, now that the President has approved the Taxation Laws Amendment Bill, 2015, which was passed by both Houses of Parliament at the end of last year. Gifts from SARS The wait is over for retirement fund members, who will enjoy increased tax deductions from their contributions to retirement funds. This includes provident funds, for which members were not previously able to claim a deduction. The tax deduction of up to 27.5% of the greater of taxable income or employment income, subject to an annual ceiling of R350 000, will come into effect. Another change is that employer contributions to occupational pension and provident funds will be included in the gross income of employees as a fringe benefit. This means that employees will be able to treat these contributions as their own when calculating their tax deductions. These deductions are subject to the limits mentioned above. You will have to buy an income-providing product…Retirement funds will also be aligned, ironing out some of the differences between the different products. One of the key changes is around ‘annuitisation’ – the process of converting retirement savings into a stream of future income. From 1 March, provident fund members, like retirement annuity and pension fund members, will only be allowed to take one-third of their retirement savings as cash and they will have to use the rest of their nest egg to buy a product that pays them an income during retirement. “Treasury has stressed that vested rights will be protected –i.e. the new rules will not apply to historic savings or to growth on those contributions.” …unless you are about to turn 55…If a provident fund member is 55 or older on 1 March, the new requirement will not apply. Any accumulated retirement savings as at 1 March, as well as new contributions and growth after 1 March, can still be taken as a cash lump sumat retirement. …or you have saved under R247 500 Members with a retirement benefit at retirement less thanor equal to R247 500 will be allowed to withdraw the entireamount without the need to purchase an annuity, as of March.This is an increase on the current value of R75 000. Click here to read more Please contact Kevin or Thato, email: [email protected], if you have any queries about retirement funds or Allen Gray offerings Source: Allan Gray 2015 Asset Class Total Returns - Listed Property the best performer in a volatile year SA listed property was the best performer with a total return (income and capital) of 7.99% in ZAR in 2015 Global Listed Property (Developed Markets)
Please contact Kevin or Thato, email: [email protected], if you have any queries about any investing Source: I-Net Bridge Prudential December fund fact sheets In December the US Federal Reserve finally raised interest rates for the first time since the 2007 Financial Crisis amid supportive economic data, easing some of the uncertainty hanging over global investors and pushing the US dollar still stronger. Chinese economic data also improved, partly relieving another source of uncertainty. However, global growth prospects, particularly emerging markets, continued to be revised downward, driving commodity prices, EM currencies and EM financial markets weaker (Brent crude lose 17.2% during the month). Assets continued to flow back to the US from riskier destinations. Most equity markets lost ground, as did bonds. Developed market equities produced a total return of -1.7% (MSCI World Free Index) and the MSCI Emerging Markets Index fell 2.2%. Global bonds were largely flat as the Barclays Global Aggregate Bond Index (US$) returned 0.6%, while precious metal prices fell: gold was down 0.34%, platinum -15.9% and palladium -20.5% (all in US dollars). South African bonds, listed property and the rand fell sharply amid the global environment and were all punished by "Nene-gate" on 10 and 11 December. Equities also lost ground as financial shares were hard-hit. The average equity fund returned -2.2% for the month, while the average high equity balanced fund delivered -0.2% (according to Morningstar, using ASISA categories). Multi-asset low-equity funds averaged -0.1%, and multi-asset income funds produced -0.3% on average. SA equities were lower in December in line with other developing markets: the FTSE/JSE All Share Index posted a total return of -1.7%. The All Bond Index suffered a 6.7% loss, and SA listed property returned -6.1%. Inflation-linked bonds were down 1.8%, while cash returned 0.5%. Over the month the rand weakened by 6.9% against the US dollar, by 5.0% against the pound sterling, and by 9.5% against the euro, making offshore assets the best performing for December. Prudential High Yield Bond Fund – The fund has returned -5.0% over 1 year and 1.4% over 3 years. This compares to -3.9% for the All Bond Index over 1 year. Long-dated bond yields have become even more attractive in the wake of December's weakness, rising to over 10%, so that the fund remains overweight duration. Please contact Kevin or Thato, email: [email protected], for any queries about Prudential investments Source: Prudential Daberistic contacts details Kindly note the following to ensure you get the correct person to assist you with your insurance and investment queries. Life insurance and investments: Kevin Yeh, Thato Merementsi, Nicole Smith Tel 011 658 1333, email [email protected] Medical aid / gap cover:Namhla Zwane,Sophie SuTel 011 658 1333, email [email protected] Short-term insurance (Personal and Business): Thomas Mooke, Calvin Yen, Tel 011 658 1333, email [email protected] Retirement funds: Kevin Yeh, Tel 011 658 1333, email [email protected] Tax, Accountancy and Auditors: Su-Lan Chen or Su-Chin Chen, Tel 011 658 1333, email [email protected] 24-hour emergency cellphone number: 076 200 5488. Website: www.daberistic.com Email: [email protected] Tel: 011 658 1333/1391 Happy New Year, dear Client/Business Associate, We hope you all enjoyed a nice, relaxing summer break and are ready for an exciting and successful 2016! This year is going to be the best for Daberistic, as we celebrate a 10 years in Business. It is hard to believe that it has been 10 years since we first signed our first policy. We are a company that still values the ownership mentality in its workers and still believes the best way to keep an existing client happy and to earn the trust of a new one is to reach out and give our best. In our first Newsletter for 2016 we look at resolutions to assist you in making 2016 an even better financial than 2015 in the article 5 money resolutions to make in 2016 this will help a better financial life. Another thing to look at is to look at ways to save and get rewards for spending; in our article on Get to Gold on Vitality in 2016 you have a clearer picture on how vitality can be of greater benefit to you. Having a healthy financial lifestyle it is important that everyone in the home is able to understand the importance of saving and learning how to plan finances, our article on Teaching your children sound financial habits helps guide parents how to guide children with finances. With the budget speech nearby it is known that the popular guy in the news will be Finance Minister Pravin Gordhan, luckily for us this time he is not a bearer of bad news as he explains to us in this article SA not heading for recession we will be glad to know that for those who have New Year’s resolution that they want a new car it will be possible. Our article on Car-buying tips for the New Year will help our clients in making sound and wise financial decisions when buying a car. As we start this New Year on the last lap of our first decade, we do so with great excitement as we anticipate what lies ahead. We appreciate you, our existing clients and friends being a part of our intertwined lives. We pledge to continue giving you the best we have to offer and great service you deserve. 5 money resolutions to make in 2016 While the top two resolutions of "save more" and "spend less" seem pretty straight forward, they're easier said than done. "Give yourself a chance to succeed by making sure the goals are meaningful, specific and actionable," said Neil Krishnaswamy, a certified financial planner at Exencial Wealth Advisors in Texas. "And set deadlines." Here are more money moves experts recommend adding to your resolution list: 1. Pay off debt With raising interest rates, 2016 is the year to commit to reducing consumer debt. Many credit card interest rates are variable, which means the annual percentage rate (APR) will likely rise as the central bank continues to raise rates."Those debts are going to get more and more expensive as rates rise," said Christopher Krell, a certified financial planner at Cassaday & Company. If you have several outstanding debts, he recommended prioritizing in order of highest to lowest interest rates when making payments. 2. Create an emergency fund Part of the "saving more" resolution should include putting money aside to cover unexpected expenses or to help make ends meets in the event of a job loss.Experts recommend stashing away three to six months of costs. "Where in that range you fall depends on your personal situation," said Stuart Ritter, senior financial planner and vice president of T. Rowe Price Investment Services. "If you are single and/or at a job that might be more at risk, you want to be at the higher end of that. If you are in a dual-income household ... you can be in the smaller range."Be sure to keep the money easily accessible. 3. Increase your retirement savings Experts generally recommend contributing at least 10% of your income into retirement accounts.If you can't quite swing that much, don't worry, you don't have to make the leap all at once. "Every three months, increase your contributions by 1% to 2%," suggested Kimberly Foss, certified financial planner and founder of Empyrion Wealth Management. 4. Assess your investment strategy It's also a good idea to start the new year by taking stock of your investments and making sure they align with your goals and risk tolerance. Make sure you know exactly what you're invested in. If you choose an asset allocation when you first started investing, you should review and reallocate at least once a year to stay on track. Krell said he recently worked with a couple who thought they were diversified only to realize the various mutual funds and ETFs they chose were all invested in the same stocks. 5. Review your insurance coverage If 2015 brought major life changes like marriage, divorce or a child, it's time to assess your insurance plans and beneficiaries.Life insurance needs tend to increase when there are more dependents on your salary. "Make sure you have two times your salary," said Krell. Also review the beneficiaries of an insurance or retirement plan -- they're likely to change following a marriage or divorce. Source:CNN Money Get to Gold on Vitality in 2016 It is possible for you to reach Gold Vitality status. All you’ll need is a good dose of motivation to get healthier, and these easy steps as your guide. For your benefit, I have attached a number of links below.You may be asking what is the benefit of being Blue or Gold well the higher your Vitality status the more benefits(travel, lifestyle and shopping), savings and cash back rewards for you. How you can get to Gold Vitality status Remember, there isn’t a set order for these activities. This is the recommended path you can take to get healthier:
Source: Discovery Please contact Namhla or Judy in our Health Department, email [email protected] , if you have any queries about Vitality or Medical Aid Teaching your children sound financial habits It is important to instill the value of money in your children from an early age. If no one teaches your child, how do you expect them to handle their money later in life? Children learn from example, and if they are not taught about debt, compound interest and the like from an early age, they’ll be on the back foot when compared to their peers once they’re in their twenties, and will have to teach themselves good financial habits.Unfortunately, some people do not manage this and soon find themselves facing an insurmountable pile of debt. Don’t dismiss the importance of teaching your children good financial habits. Research by the Money Advice Service has found that money habits, particularly adult money management habits, are formed in children by the age of seven.“Most young children grasp all main aspects of how money works and form core behaviours which they take into adulthood and which will affect financial decisions they make for the rest of their lives,” it stated. Says Danelle van Heerde, head of advice processes at Sanlam Personal Finance: “The best way to teach your children anything is by example. Money habits are no different. Your own attitudes towards money will rub off on your children, so daily life presents a wonderful opportunity to teach children good money habits.” Remember, it’s not what you say but what you do that often has a lasting impact on young children. If you contradict what you say, children will often fall back on following your example, therefore it is pivotal to ensure that you practice what you preach.Says Charl Nel, head of communications at Capitec: “Children learn from imitation from an early age. They also learn by picking up patterns in their own daily experiences – called inductive learning – so involve them in age appropriate money activates as often as you can. Getting the basics right will help your child to build a strong financial base.”Unfortunately, one of the most common mistakes that parents make is trying to keep up with what other parents offer their children. This may be hard when your child comes up to you complaining that their friend has just received the latest gadget. Click here to read more Source: Finweek SA not heading for recession Finance Minister Pravin Gordhan said on 14th January 2016 that South Africa's economy would not slip into recession, rejecting predictions by some economists that sharp falls in the rand pointed to a contraction this year. "We are growing as an economy; we are not going into a recession. But we are not growing fast enough," Gordhan told a media briefing after a cabinet meeting. The rand, among the most volatile of major emerging market currencies, slumped to a record low of R17.9950 to the dollar during Asian trade on Monday on fears that China wanted to weaken its currency aggressively, though it has since recovered some ground. The depreciation has, however, helped SA’s export prospects and, combined with a sharply lower global oil price, has helped to alleviate pressure on South Africa's current account. Gordhan, who returned as finance minister in December, said he would be meeting with the Reserve Bank to discuss how to deal with the challenges of growth. In 2010, Gordhan wrote a letter to then-Reserve Bank governor Gill Marcus asking the Reserve Bank to be mindful of employment and growth alongside its price stability and inflation mandate. "We will certainly be meeting regularly with the Reserve Bank and look at the current environment to see how we approach challenges," Gordhan said. The National Treasury has set a growth target of 1.5% for 2015, though quarterly data suggest this may be hard to achieve. Source: News24 Please contact Kevin Yeh, email [email protected] , if you have any queries about Financial Planning Car buying tips for the New Year Many car buyers delayed their car purchases to have a car registered in the new year, but it does have its drawbacks, cautions Rudolf Mahoney, head of brand and communication at WesBank. Often a car purchased in January would have been subject to a price increase and it may require careful budgeting to ensure you can keep up with the monthly instalments. “Buying a car is not just a new year’s resolution, it’s a five- or six-year-long commitment,” says Mahoney. “Plan correctly from the outset, and not only will your first year of car ownership go smoothly, but your personal finances will benefit in the years to follow.” In the view of Debt Rescue CEO Neil Roets, it is better to save and buy cash and vitally important to live within your means. "Loans should not be used for day-to-day living. They should only be utilised for buying expensive assets like properties and vehicles," said Roets. “When buying a vehicle, don’t fall into the trap of buying something beyond your means. Rather buy an economy class vehicle than an expensive luxury car.”Roets said it is vital to make financial provision for unforeseen circumstances, for example car repairs or a health crisis that might not be covered by medical aid. “Distinguish between what you need and what you want – do not try and keep up with the Joneses,” he warned. The most important part of the car-buying journey is compiling a list of all current expenses and income. It is important to shop around and compare car prices to find a sensible and affordable car that fits within your budget. On average, a young professional that buys a first car at around the age of 25 and replaces the car every five or so years would have financed around eight cars in his or her car-buying lifespan. As a first-time car buyer, you need to decide wisely. The first car you buy and the way you manage your funds shape your financial future and determine whether you will be stuck in cycle of debt till you retire. Buyers should take note of every amount they have to pay - no matter how small - and subtract those costs from your total income. Click here to read more Source: Fin24 Please contact Thomas in our Short Term Department; email [email protected] , for all car insurance query Contact details Kindly note the following to ensure you get the correct person to assist you with your insurance and investment queries. Life insurance and investments: Kevin Yeh, Thato Merementsi, Nicole Smith Tel 011 658 1333/1391, email [email protected] Medical aid / gap cover:Namhla Zwane, Sophie Su Tel 011 658 1333/1391, email [email protected] Short-term insurance (Personal and Business): Thomas Mooke, Jonavon Theron, Tel 011 658-1333/1391, email [email protected] Retirement funds: Kevin Yeh, Tel 011 658 1333/1391, email [email protected] Tax, Accountancy and Auditors: Su-Lan Chen or Su-Chin Chen, Tel 011 658 1333/1391, email [email protected] 24-hour emergency cellphone number: 076 200 5488. Website: www.daberistic.com Email: [email protected] Tel: 011 658 1333 Dear Client / Business Associate In our November newsletter we are pleased to announce the launch of our brand new website! After months of hard work and dedication, we are delighted to officially Announce that the site is up and running. As the year winds up we sometimes also realise that the are some important matters that have been left unwinded, when our time on earth comes to an end, it is seldom planned or timed to suit us. Leaving a current will and appointing someone to the role of executor of that will is one of the best things we can do to help our loved ones, our article on What the executor must do once appointed guides you on how an Executor can help wind up an estate. While some may be dealing with winding up estates, others are planning for new beginnings and are unable to do so due to being blacklisted; our article on How to clear your name from Blacklist is a Q&A to guide anyone in this position As we swing into summer, safety from rainstorm and hailstorm becomes a greater priority; our article on How to deal with the Hail season gives some helpful tips. There is a Short Term insurance update, which is important information for anyone who wants to apply for Insurance between 1st December 2015 and 31st January 2016. Lastly, if you are planning a year-end vacation, ensure you have adequate insurance to cover any mishaps. Besides the ‘usual’ claims for an accident, falling ill or luggage theft, we look at Unusual holiday insurance claims submitted by holiday makers, this will surely show you the lighter side of Insurance Announcing the Launch of our New Website We are pleased to announce the launch of our brand new website! After months of hard work and dedication, we are delighted to officially announce that the site is up and running. The new site launch is available and the URL is www.daberistic.com .Our goal with this new website is to provide our visitors an easier way to learn about Daberistic services and solutions and also to allow the visitor to browse information based on their own choice. The new website is interactive and gives better access to About Us, Investments, Insurance, Daberistic Accounting and Auditors, Financial Coaching, and many more. Our current and prospective clients will find useful information about our services on the homepage of our website and all they need to do is click on the title of the service they are looking for. Amongst the new features clients will also be able to fill in forms namely Car and house application, Contractors all Risk, Student Health Insurance Application on the website and they will be sent to us We will be constantly updating our content with helpful information, articles, blogs, newsletters, company announcements and client successes in the Home page . We hope you find the new website with a fresh look, easy to access information and we also wish to establish this portal as a source of information for those who visits our site. We would also like to thank our amazing staff at Daberistic who donated their time and energy to make this site what it is. For any questions, suggestions, feedback or comments, please E-mail us on at [email protected] . How to deal with the Hail season First point to remember , is to please report the incident immediately to our Short Term department on 011 658-1333 or [email protected] .From here, we will advise clients regarding the repair process. Listed below are some tips :
Click here to read more Source: Santam Please contact Thomas or Jonavon in our Short Term Department, email [email protected] , if you have any queries about claims after a hail storm Short Term insurance update Please note that the below Insurance companies will not be accepting new applications for All risk, Household, Business and Motor Insurance from clients who are currently not insured. This is applicable for the period between 1st December 2015 and 31st January 2016. Mutual & Federal: New business may not be accepted with an inception date from December 1st 2015 to January 31st 2016 unless there has been other insurance in force with the same cover for at least 12 months up to November 30th 2015. Householder's cover may not be added to an existing policy during this period. Santam: Santam will be accepting new Personal Lines business over the festive period starting 1 December 2015 to 31 January 2016 based on the following conditions for “Holiday Cover”:
Hollard: With regard to new business taken on during the months of November 2015 and December 2015, please note that we are no longer in a position to accept cover during this specific two month period, unless an annual premium is paid in advance, or unless we are taking over an existing policy from another insurer.The reason for this temporary restriction is due to negative claims behaviour experienced during and leading up until the December holidays, where after cover is then terminated early in the New Year following a claim. Source: Brolink Please contact Thomas or Jonavon in our Short Term Department; email [email protected] , for all short term enquiries What the executor must do once appointed
Source: Funeralguide How to clear your name from Blacklist Question: "I want to buy the house as soon as possible, the problem is I'm blacklisted and I need R60 000 to clear my debts. "My company will not approve my application before I clear my name. What is available to me to clear this situation?" Wikus Olivier, Debt Management Expert at DebtSafe, responds: Answer: Your credit profile seems to be the issue here. Not necessarily the fact that you have debt. You can improve or restore your credit profile by addressing a few issues. a) Know exactly what is going on with your credit profile. Pull a credit report from one of the reputable credit bureaux. You are entitled in terms of the National Credit Act (NCA) to one free credit report per year. Once you now exactly what items on your credit profile are causing the issue, you can then take steps to rectify them. b) Your payment history would most likely be the biggest issue. This is a history of your payment behaviour for the past 24 months. Bring all arrears up to date. Your payment history will reflect the arrears for 24 months, but if you have a good payment history for the past 3 to 6 months it should significantly help to improve your credit profile and credit score. Click here to read more Please contact Su-Lan Chen or Su-Chin Chen, Tel 011 658 1333, email [email protected] if you would like to get advice on your any accounting queries. Source: Finance24 Unusual Insurance Claims On a lighter note, when people go on holiday, things don’t always run smoothly. Accidents happen, you might get ill or your possessions might be stolen. There is a whole list of things that could go wrong while holidaying. While it might not be funny at the time, some strange things can happen on people’s travels and insurance has to decide whether they’ll pay out. Here’s a list of some funny, albeit unfortunate, incidents that people have had to claim for whilst on holiday.
Source: Masthead Company News Daberistic bid farewell to Calvin Yen (Administrator: Short Term) at the end of October 2015.Calvin worked in the Short Term Insurance department dealing with all client queries, claims and all other client related matters. He will be greatly missed for his dedication and hard work, Daberistic wishes him all the best in his endeavors. For queries in Short-term insurance following Calvin’s departure, contact Judy or Jonovan at [email protected] Contact details
Kindly note the following to ensure you get the correct person to assist you with your insurance and investment queries. Life insurance and investments: Kevin Yeh, Thato Merementsi, Nicole Smith Tel 011 658 1333, email [email protected] Medical aid / gap cover:Namhla Zwane, Sophie Su Tel 011 658 1333, email [email protected] Short-term insurance (Personal and Business): Thomas Mooke, Jonavon Theron, Tel 011 658-1333, email [email protected] Retirement funds: Kevin Yeh, Tel 011 658 1333, email [email protected] Tax, Accountancy and Auditors: Su-Lan Chen or Su-Chin Chen, Tel 011 658 1333, email [email protected] 24-hour emergency cellphone number: 076 200 5488. Allan Gray - Increase in the daily electronic collection limit from R500 000 to R1 million24/11/2015
The Payments Association of South Africa (PASA) has recently increased the maximum limit for electronic fund collections to R1 million. In complying with the new limit, we will increase our maximum electronic fund collection amount from R500 000 to R1 million per account per business day, effective 7 December 2015.
How will this change affect you? Prior to the increase, transactions that required us to collect amounts greater than R500 000 from investors’ bank accounts took place over multiple business days. Going forward, the increased limit will enable us to collect up to R1 million per account per business day, thereby reducing the amount of days it will take to perform large collections from investors’ bank accounts. Dear Client / Business Associate Old Mutual has launched a GREENLIGHT Special Offer Campaign to selected existing Old Mutual customers who have taken out their risk benefit within the last 5 years. Eligible customers qualify to either increase their existing cover or take out additional cover. This is subject to a Declaration of Health and financial underwriting where applicable.
GREENLIGHT customers, who have an existing life, disability or severe illness cover, qualify for a maximum of R2m life cover, disability cover, severe illness cover and R20 000 income replacer on a new contract. GREENLIGHT customers who have a final expenses benefit, qualify for a maximum of R1m life cover, disability cover, severe illness cover and R10 000 income replacer on a new contract. Please contact Kevin or Thato, email: [email protected] , if you have any queries about the Greenlight campaign or any other queries on investments Source: Old Mutual Allan Gray's investment platform Allan Gray’s investment platform provides you with access to all their products, as well as a focused range of unit trusts from other fund providers. The platform enables you to buy, sell and switch at no charge between the funds as your needs and objectives change. South African investors who wish to diversify their portfolios have the additional choice of funds from certain other offshore fund providers via the same platform. Allan Gray currently offer access to the following fund providers on their investment platform. You should ensure that the funds you select are appropriate for your needs and objectives. Please contact us so we can send you the relevant fund factsheets, which offer a detailed explanation of the nature of the funds and their fee structures. Click here to read more_ Please contact Kevin, email: [email protected], if you have any queries about Allan Gray investment portfolio Source: Allan Gray Saving vs Investing, What's the Difference? The first step to getting your savings plan right is to understand that there is a significant difference between saving and investing but they have equal importance in terms of crafting a financial plan. Turning ourselves from savers to investors is vital to our long-term success but it is a transition that many of us have trouble making. The act of saving is a secure way of accumulating money. Investing on the other hand carries with it the concept of risk. As a general, rule saving is the process of placing money in interest bearing accounts with fixed or predictable returns. Investing is saving money in vehicles like Retirement Annuities, the Stock Market and Unit Trusts. These products do not earn interest but rather grow in value as a result of the underlying asset. Therefore the risk is higher because you are banking on the fact that the underlying assets of the investment keep growing in value. Fear of investing in the Stock Market or stock based investments makes people seek out very predictable and conservative, places to save. They look for guarantees that won't lose money and they actively avoid placing money in areas where its value could fluctuate. While caution when you are investing or saving is a good thing, being overly cautious could mean that your money does not grow enough to cover the effects of inflation. The solution for the fearful investor is to adopt a long- term view to savings and investing, and to use both of these vehicles to build your wealth. You can have the best of both worlds if you separate out your long term and short- term financial goals. Short-term goals such as new furniture or a vacation can be saved for in traditional savings areas such as fixed deposits or the money market. The longer-term goals, such as having sufficient money for a comfortable retirement, should be provided for separately, in more performance oriented, stock market linked investments. Click here to read more Please contact Kevin or Thato, email: [email protected], if you have any queries about investments Source: Hollard Keep your investments on track One of the best ways to explain investment risk is by comparing it to Formula One racing. Aside from the fact that these drivers race at speeds of up to 300km/h around twists and turns on the racecourse, they constantly have to assess risks, such as when the time comes to speed up and when to slow down. A driver like Lewis Hamilton can start the race and keep going at full speed to get ahead of his competitors, but he risks the fact that his car’s engine or its tyres may not be able to hold up to the challenge for the entire race. At some point the driver in front will have to consider whether or not to continue racing at that particular speed and level, or whether to rather slow down a bit in order to spare the vehicle. Luckily, the driver has a team of experts to determine the vehicle’s optimum performance levels within which to remain. Investments in different asset classes are based on the same principle. Between 2011 and 2014, investors enjoyed being in the lead with their investments comfortably outperforming risk-free money market rates. Following the market’s decline and increasing pressure this past month however, the time has come for investors to ask themselves whether they should slow down after having been in the lead for quite some time. Is it really necessary to keep pushing investments above optimum levels in order to win? Before answering that question, it's important to clarify exactly what the optimum levels across the different asset classes are. Let's do this by using historical values and compare those to Inflation (CPI). The moment we refer to different asset classes, most investors will argue that shares offer the best vehicle to outperform inflation. What’s interesting though, is that if an investor invested parts of their capital in local shares, local bonds, property shares and money market 25 years ago (1991), it is property shares that would have performed the best before taxes. However, it is important to note that property shares also started from a low base. Shares still offer the most tax-efficient investment vehicle of the four mentioned above, but even after tax, investors would have only just won the race. Click here to read more Please contact Kevin or Thato, email: [email protected], if you have any queries about any investments Source: Fin24 Tax after retirement In financial planning pre-retirement and the benefits of contributing to a retirement fund enjoy a lot of attention, while the optimisation of tax after retirement sometimes takes a back seat. Here are a few ways in which you can cut your tax bill.
Professor Lester advised against leaving assets intended for your spouse in an RA, as your spouse already enjoys the ‘spouse’s rebate’ – so you wouldn’t reduce the estate duty payable if your spouse is nominated as beneficiary. From an estate duty point of view, your children or any heir other than your spouse would make more sense as a beneficiary. (Bear in mind that the trustees ultimately decide who will get your client’s share in the retirement fund. The nomination will guide them, though.)
Please contact Kevin or Thato, email: [email protected], if you have any queries about retirement funds Source: Fanews The CoverBooster special offer Buy a Discovery Life policy before 31 December 2015, and get an extra 32% life cover for no additional premium How the CoverBooster works At policy inception: At policy inception, 32% of your Life Fund will be provided to you for no additional premium. After three years: After three years, you can buy the CoverBooster life cover at a discounted rate of up to 15% depending on your Vitality status over the three year period. This is done free of underwriting. The discount for each year that you are on a particular Vitality status is as follows:
Example: If you are on Silver for three years you would be able to purchase the additional cover provided by the CoverBooster at a discount rate of 9% to standard rates.
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