Inflation Illusion

Old Mutual Balanced Fund manager, Graham Tucker, explains in an article published on Fin24 how many investors suffer from something he calls ‘inflation illusion’. This essentially means that many people aren’t completely aware about the effects of inflation or how much it will impact their savings over time. For example, the average inflation rate of vehicles since 1990 has been 5.8%. This means that a medium-sized sedan that cost ZAR260,000 in 2016 will likely cost ZAR1.05m in 2041. At the same time, the cost of sending your child to a top private school is increasing at an inflation rate of […]

5 Top Tips to Staying Rich

There is no formula for instant wealth – but for some, it can become a reality overnight and, if not managed correctly, this dream can easily turn into a nightmare. If you happen to inherit an astronomical sum, receive a massive bonus, or fortuitously sell a property for a lot more than you paid for it, then follow these useful tips that we found in an article published by Fin24 that will help you to successfully handle a financial windfall. 1. Don’t spend it all at once The temptation for many people who come into a large sum of money […]

5 things to do before going away

The school holidays are coming and it’s easy to feel overwhelmed with so many things to remember to do before you go away. But here are five quick and easy pointers that will make your holiday as carefree as possible – and even save you money in the long run – so that you can focus on enjoying time with your loved ones. 1. Service your vehicle If you’re planning to set off on an overland adventure, it’s important to service your vehicle beforehand. This will ensure that everything is running safely and smoothly so that you can enjoy the […]

Financial Flu

It’s that time of year again in the southern hemisphere. The days are shorter, the nights are long and cold; dressing gowns and woolly jumpers have replaced sunblock and shorts. Another thing that is common in winter is the flu, so this article published on MoneyWeb seemed particularly apt for the season. According to the article, a recent financial wellness survey carried out by Sanlam highlighted that 73% of middle-class South Africans experience financial stress. This was described by the survey “as emotions associated with the difficulty an individual or household may have in meeting financial commitments due to a […]

5 Father’s Day gifts that are a great investment

Whatever you do, don’t forget Father’s Day, which is coming up in South Africa on Sunday, 18th June. After all that our dads have done for us, the least we can do is show them how much we care. And if your father is like many other fathers – in that he loves to save a bit of cash – here are five gifts that will give him high returns, no matter how the markets are performing. 1. Sous vide cooker Is your dad a bit of an amateur chef at heart? Then buy him a sous vide cooker and […]

How to Create Wealth in an Uncertain World

Creating wealth is a long-term process that requires patience, resilience and a strong strategy that can weather the global investment storm that has been raging in recent times. As you embark, or continue, upon your journey to financial independence, it is important to wholly understand the investment landscape, or have an advisor you trust, in order to successfully navigate the ups and downs of a stormy market and exploit the nuances of profit-yielding opportunities. What exactly, has created the stormy conditions? According to a recent article entitled Navigating Uncertain Waters, slower demand from China last year resulted in declining commodities […]

Keep Calm and Carry On

When it comes to investments, it’s important to stay focused on the bigger picture – even though the effect of recent political events in South Africa may have you itching to move your investments out of the market and into cash. The instinct to do this arises from the fact that cash investments are readily available for use and are free of most investment risk. The low risk of a bank failing is essentially the only concern as they are investments on short-term, variable-rate deposit with reputable banks. However, in an article published at the start of April 2017 in […]

Keep your Retirement Options Open

It’s never too early to start planning for your retirement, and help is at hand if saving for the future ever feels confusing or overwhelming. The key is to think like a wilderness explorer and always be prepared! Be open to what could happen in your autumn years. For example, if you live to the impressive age of 95, you may very well want to buy two new cars and move home at least once during your retirement, so you’ll need to plan accordingly to cater for potential scenarios. As people are living longer, so will they require more capital […]

Rich for distress

In the aftermath of South Africa’s downgrade to junk status by two major ratings agencies, it is feared that the country will begin a self-reinforcing downward spiral. Until the end of 2016, Azar Jammine, the director and chief economist of Econometrix, felt that the nation was experiencing a “slow erosion, not a huge slump.” However, in an article published in October last year by the Mail & Guardian, Stanlib’s chief economist, Kevin Lings, warned that the country would be vulnerable if “the economy continues to deteriorate and confidence dissipates.” He also emphasised that circumstances were ripe for businesses to need […]

How to Reduce Estate Costs

A death is often a traumatic enough event, without the added burden of dealing with estate matters. Unfortunately, many people underestimate the costs related to death, especially the smaller fees that quickly add up. Consequently, loved ones sometimes find themselves in situations where they have to sell valuable assets in order to settle the outstanding debts of the deceased. In an article recently published on Moneyweb, the chairperson of FISA, Ronel Williams, offers advice on how you can ensure that everything goes as smoothly as possible in the event of your passing. This article breaks down the costs incurred after […]