The benefits of reorganising your investments
Invest Online
by Natasha Atkin
1w ago
According to the Financial Planning Institute of Southern Africa (FPISA), the number of Certified Financial Planning® professionals worldwide has more than doubled since 2004. This growth serves as evidence that consumers are recognizing the substantial benefits of professional financial planning and advice. A recent global study conducted by the Financial Planning Standards Board (FPSB) indicates that individuals who engage with qualified financial planning professionals experience a higher quality of life. They also enjoy greater financial confidence and resilience, ultimately leading to hig ..read more
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Investment lessons for uncertain times
Invest Online
by Natasha Atkin
1M ago
Currently there are numerous political and geopolitical uncertainties naturally concerning investors. These include upcoming SA, US, and UK elections, as well as conflicts in the Middle East and Ukraine. Such reservations and concerns can heighten investor behavioural biases, resulting in emotional decision-making. We draw on a recent Allan Gray article looking at lessons on how to mitigate some irrational actions that could erode your wealth during periods of heightened risk. 1) No one can predict the future – Although this cannot be done with 100% certainty, attaching different levels of pro ..read more
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Small investment choices have large consequences over the long-term
Invest Online
by Natasha Atkin
2M ago
Understanding the power of compounding can be crucial for the growth of your investments. Small savings on effective tax, estate planning and investment structuring can add significantly to your wealth over the long term. In this article, we highlight some simple, yet critical actions that, when compounded over time, can substantially bolster your financial health. Cash vs Equities With interest rates currently high and appearing attractive over the short term, many investors have opted to place their discretionary savings in cash or fixed deposits. However, income tax can reduce these interes ..read more
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Investonline: Offshore Investment Webinar recording and slides
Invest Online
by Geran Steyn
2M ago
Last week we hosted a webinar on offshore investing and the benefits of using International Wrappers. The following topics were discussed in detail: The benefits and obstacles of investing offshore, Exchange control rules when taking your money offshore, Taxation and Estate Planning considerations, Different offshore investment account options, and Introducing International Wrappers and discussing their benefits. We provided an example where we compared a normal offshore investment to an Internationally Wrapped investment and how the Wrapper can outperform after-tax and estate costs. The net ..read more
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Why You Should Partner with a Financial Planner
Invest Online
by Geran Steyn
3M ago
Partnering with a qualified and experienced financial planner can add enormous value by helping you identify and achieve your financial goals, establish a financial plan, invest your savings appropriately and protect your capital against unnecessary risks. Where you may believe that you are saving costs by cutting out “the middleman” and managing your savings on your own, you may be losing more due to an inappropriate investment strategy and an inefficient tax structure. In this newsletter, we will explore key benefits of partnering with a financial planner and the pitfalls of managing your ow ..read more
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Assessing Investment Options
Invest Online
by Natasha Atkin
4M ago
Deciding where to invest your hard-earned cash can be challenging, especially when considering factors such as costs and taxes. In this article, we compare the outcomes of a 10-year investment in an investment property, a fixed deposit at the bank, or a diversified investment portfolio. 1. Investment Property We have calculated the estimated investment return if you purchased a R2million flat at the start of 2014 and sold the property 10 years later at end 2023, while renting the property out the entire time. We have used industry data to facilitate these calculations. Growth of Property Value ..read more
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1st Quarter 2024 Market Outlook
Invest Online
by Natasha Atkin
4M ago
2024 Market outlook Investment markets are generally offering attractive values with a positive outlook for the medium-term, as we foresee a new cycle of economic growth emerging as interest rates decline. However, we are expecting volatility this year, given uncertainties remaining in global investment markets, requiring continued investor patience. 2023 – recoveries and volatility The JSE ended up 9.3% in 2023 after a sharp year-end spike up of 10%, as markets accepted that interest rates had peaked. Despite the recovery, it was a year of constant volatility leading on from 2022, with averag ..read more
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2023 Year-end Wrap
Invest Online
by Natasha Atkin
6M ago
In this year-end wrap, we review how local and offshore investment markets performed in 2023, look at the key themes that drove markets, and look at some of the risks and opportunities for 2024. The past year continued to test investors’ patience as the 2022 market roller-coaster continued into 2023. This was due mainly to sharply rising interest rates and the market’s attempt to forecast the effects thereof. The JSE All Share Index returned 3% in 2022 and 7% in 2023 year to date, but this has included large swings of more than 10% down and up in both years, as persistently higher inflation sc ..read more
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Understanding Living Annuities
Invest Online
by Natasha Atkin
6M ago
As you get closer to your expected retirement date, one can often be overwhelmed by information and have difficulty making important retirement decisions. Certain decisions include selecting how much to draw as a lump sum, choosing the right product, how much income to draw and where to invest your retirement savings. Investors will commonly transfer their retirement savings to a living annuity investment. But to benefit most from a living annuity, it must be incorporated within your retirement plan correctly to ensure that you achieve overall tax-efficiency, have enough liquidity in life and ..read more
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High interest rates result in higher taxes
Invest Online
by Natasha Atkin
7M ago
With interest rates more than doubling over the last two years (the repo rate currently at 8.25%, up from 3.5% in October 2021) interest earners are paying significantly higher tax. We draw on a recent Ninety One article illustrating this point. As interest rates have risen sharply over the last two years, they’ve put the economy and the consumer under significant pressure. But for savers enjoying a far higher “risk-free return”, their tax owing has increased at a far higher proportion relative to interest earned. SA Repo Rate since March 2021: SARS provides an exemption on local interest ear ..read more
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