• Monthly Archives

    February 2020

    Don’t avoid what you don’t understand

    By | Uncategorized

    Millennials – the people aged 23 to 38 – see the world differently. They do not want to own a car or a house, those cornerstone assets all the Baby Boomers – aged 55 to 75 – aspired to. They want a self-driving Uber to come pick them up; and they stay in a modern, fibre-connected apartment close to whichever area they are working from that month.  They do not want to hold their smartphone in their hand and type on it, they want to talk to it. They want  to have a conversation with Siri on Apple, Alexa on Amazon, or Google Assistant to order them a Starbucks coffee and sourdough salmon bagel for delivery to their front door in twenty minutes while they put on their make-up. They want Illumina to analyse their genes to make sure they will have a healthy baby and to grow themselves a spare heart in a petri dish for when they need a replacement at age 150. Read More

    Patience is a virtue

    By | The Market

    Equity investors are often told to “buy and hold”, but we have mentioned before that that is not the whole truth and that slow but deliberate adjustments to your investment portfolio are necessary to optimize the return you get and manage the risk you take. Although equities are the best-performing asset class over the longer term (see graph below) and a buy-and-hold strategy will eventually work if you just buy the index, you will notice that there are times when you have to wait for a very long time to go forward. Read More

    RA and tax-free investments before 29 February 2020

    By | Financial Planning

    The South African Revenue Service (SARS) has put several tax incentives in place to encourage us to save more for our retirement and other long-term goals. As the end of the tax year is approaching, you may consider contributing to a retirement annuity (RA) or tax-free investment before 29 February 2020. It is important to remember that when you retire out of an RA, only one-third of the proceeds may be taken in cash, of which a maximum of R500 000 will be 100% tax-free. Read More