I was in two minds whether to write this article criticising the banks for promoting their tax-free savings products for fear of discouraging the act of saving in a country where the savings rate is negative, which means “we don’t
Sustainable income drawdown
Following the income thread of my previous article, this week I will cover sustainable income drawdown rules for retirees. Below is the FSCA guidelines for sustainable income drawdown rates for living annuity pensioners. The same drawdown rates would apply to
Will retirees’ capital last entire stretch?
This week I would like to focus on the term capital income, which is usually used to describe the taxable portion of a capital gain realised. However, the term capital income is also applicable in retirement planning. Let me explain
Emotional investors need good advice
Allan Gray asset management recently came under fire in an article, in which the author opined their recent poor relative performance. The author, who will remain nameless as I think he may have been looking for publicity, blamed the disappointing
Last March’s panic selling is a loss one will never recover
The price of generating real above inflation returns by investing in the share market is accepting the inherent volatility associated with equity investing. Investors must remember that short-term price volatility is not the risk per se. The risk is how you
Cash is now showing itself to be trash
For 3 years now cash has been masquerading as the King. But I am sad to announce, “the King is dead, long live the King!” The reason I say masquerading is the fact that cash can never rule for long
Proper Investor’s input is best
Harry Markowitz developed Modern Portfolio Theory, which theorized that investors could design a portfolio to maximize returns by accepting a quantifiable amount of risk. In other words, investors could reduce risk by diversifying their assets and asset allocation of their investments using
Here’s looking forward to the mirror image of 2020 for 2021
Driving to Cape Town on the N2 last week I witnessed a young lady come to near standstill as she turned her head around to look-in her back window in order to check on approaching traffic before changing lanes. This
Beware TINA!
The tile of this week’s article sounds more like a tropical storm warning than a warning to investors, which may be appropriate given that TINA can be just as devastating on your wealth as a category five hurricane when making
Covid-19 causes K-shaped crisis
The recent COVID-19 crisis should be a reminder that sh…t happens and the importance of stress testing your personal finances. The shape of the recovery is best described by the letter K with the upward sloping arm of the K