2018 English Newsletters

Death and taxes may be the only certainties in life, but ironically, humans will try to avoid both at all costs. We often hear about tax-free or other tax-efficient investment options and assume these present profitable opportunities because we want to minimise our tax burden. But are tax-free investments the best choice just because of the tax advantages they offer?

We consider the different tax-efficient investment opportunities available to investors and with tax efficiency in mind, we consider the opportunities available through Section 12J investments.

While it is always advisable to consider the impact of taxation on our investments, investment performance plays a greater role in our wealth management efforts. Hence, we examine whether a global recession may be on the cards in 2019 and the issues that pose the greatest risk to the South African economy.

Finally, we look at the investment opportunities the FinTech sector is offering by creating the innovative, transparent and inexpensive financial services that banks have failed to offer to their customers in the past.

 

On 16 February, President Cyril Ramaphosa delivered his maiden state of the nation address, in which he called South Africans to serve – Thuma Mina (Send Me). His pledge to tackle corruption, unemployment and inequality provided hope for many invested in South Africa’s success.

Whether this hope will turn into positive change still remains to be seen but after fewer than 90 days in office, we are already seeing many important milestones being met, putting the country on course to experience the “new dawn”. Among these milestones was the appointment of finance minister Nhlanhla Nene and public enterprises minister Pravin Gordhan. Mineral resources minister Gwede Mantashe is tasked with salvaging the disastrous Mining Charter.

To deal with the crisis at SARS, President Ramaphosa has suspended Tom Moyane and will likely address the rot in the office of the National Protection Agency (NPA) and State Security Agency soon. The president has also taken time to win the hearts of ordinary people as he was snapped walking, shopping and also flying economy class.

In a nutshell, it seems like the president has had a good start. However, the task of restoring the South African economy, ridding it from the clutches of corruption and mismanagement is mammoth. In addition to that, all eyes are on him as he aims to rebuild investor confidence, improve growth and credit ratings.

 

 

You spend your life working and saving to ensure a comfortable retirement. But while there is a lot of advice to be found about how to save for retirement, do you know what your options are at the point of retirement?

At retirement age, retirement fund member or retirement annuity holder face two common decisions:

  • How much of their retirement savings should be taken as cash, and
  • What type of annuity should be purchased, and from where?

The answers to both questions will depend on each individual’s circumstances. In this month’s edition of Ecsponews, we explain the difference between two important types of annuities relevant to retirement: a life annuity and a living annuity. We also explore the reasons why simplicity is king when it comes to any type of investment. Our philosophy, that your investments should be simple and transparent, is based on the old adage about time value: those who understand it earn it… and those who do not understand it, pay for it.

 

The election of Cyril Ramaphosa as South Africa’s new president puts an end to an era of uncertainty and brings new hope and confidence for citizens, as well as investors locally and abroad. Recovering from the legacy of the Zuma-era will be no easy task. It will take time, patience and skilful planning from government.

Restoring confidence is critical to stimulate an economy and the 2018 National Budget has underpinned this principle. While our investments may not be directly affected, we will all feel the effects of this Budget in coming months, specifically the increase in the VAT rate and proposed increase in the price of fuel by 52c per litre.

In this edition of Ecsponews, we highlight the elements of the 2018 Budget that will affect investors directly. We also consider the steps investors can take to protect themselves during times of political and/or economic change.

(Download our 2018 Tax guide for individual investors and trusts and remember to file it in your Ecsponent My Financial Life file for easy reference.)

 

 

The first month of 2018 was anything but dull in terms of developments in the markets, our economy and on the political stage. Markets are still reacting to the Steinhoff-saga and possibly now also Capitec, following the most recent report from Viceroy. Meanwhile, the rand is continuing to strengthen since the election of Cyril Ramaphosa as the new president of the ANC.

That was just the start, as critical events in February will influence the fate of the economy and consumers. Not only will the State of the Nation Address be delivered, but it will be followed by the budget speech, which will influence credit rating agencies’ decisions about our economic future. And we expect significant changes to the country’s leadership…

Aside from political and economic changes, it is clear that Joe Public’s attention is focused more on the realities of job security. These concerns even surpass our constant concerns over the devastating crime that affects all of us. And with an unemployment rate of 27.7%, it is quite understandable.

That is why this edition of Ecsponews focuses on ways in which you can protect yourself against the loss of a salary or fixed income. We also consider the cost of education and give advice to parents about how they can invest in their children’s future by making provision for quality education.

 

After a year of seesawing, South Africans could finally breathe a sigh of relief following the conclusion of the ANC’s 54th elective conference. Whether the outcome will be positive or negative remains to be seen but the psychological waiting game is now something of the past and we can enter the new year with new hope.

2018 looks promising in the face of political changes, which are set to benefit our economy. Reform and a fresh approach should make South Africa more attractive to investors, launching a new era of stability in the country.

That is also our wish for the country and its people, investors and other stakeholders: That 2018 will be a year marked by peace, stability and positive growth. And while we’re focusing on new beginnings, we have included the recipe to becoming a millionaire through investment. There is no better time to start working towards this goal.

2017 English Newsletters

2018 Afrikaanse Nuusbriewe

Die gesegde lui dat ons in hierdie lewe net verseker is van dood en belasting maar ironies genoeg is dit juis twee gebeurtenisse wat ons almal wil vermy. Daarom glo ons dikwels dat beleggings wat deels of ten volle van belasting vrygestel is ‘n goeie opsie is, want ons wil almal so min as moontlik belasting betaal. Maar is belastingvrye beleggings die beste keuse bloot omdat hulle belastingvoordele bied?

Ons kyk ​​na die verskillende belastingvriendelike beleggingsgeleenthede wat vir beleggers beskikbaar is en hou veral stil by die geleenthede wat Artikel 12J-beleggings bied.

Alhoewel dit altyd raadsaam is om die impak van belasting op ons beleggings te oorweeg, speel beleggingsprestasie ‘n groter rol in ons beleggingsbestuur. Ons ondersoek dus die moontlikhede dat ‘n wêreldwye resessie in 2019 op ons kan wag en kyk ook na die kwessies wat die grootste risiko vir die Suid-Afrikaanse ekonomie inhou.

Ten slotte kyk ons ​​na die beleggingsgeleenthede wat die FinTech-sektor bied deur innoverende, deursigtige en bekostigbare finansiële dienste te skep wat tradisionele banke tot dusver nie aan hul kliënte kon bied nie.

Op 16 Februarie het President Cyril Ramaphosa sy eerste staatsrede gelewer, waarin hy Suid-Afrikaners geroep het om saam te dien – Thuma Mina (Stuur my). Sy belofte om korrupsie, werkloosheid en ongelykheid aan te pak, het vir verskeie partye met ‘n belang in Suid Afrika, se sukses hoop gegee.

Tyd sal leer of hierdie hoop na konkrete resultate sal lei maar na minder as 90 dae sedert sy aanstelling, is daar reeds verskeie belangrike mylpale bereik wat daarop dui dat ons op koers is om ‘n “nuwe dagbreek” in Suid Afrika te ervaar.

Van hierdie mylpale sluit die aanstellings van minister van finansies, Nhlanhla Nene en minister van openbare ondernemings, Pravin Gordhan in. Gwede Mantashe, minister van minerale hulpbronne, het die opdrag ontvang om die rampspoedige mynbouhandves te red.

In ‘n poging om die krisis by die SAID te beredder, het president Ramaphosa Tom Moyane geskors en sal hy waarskynlik binnekort die Openbare Vervolgingsgesag en die Staatsveiligheidsagentskap aanspreek. Die president het ook tyd afgeknyp om die harte van gewone mense te wen deur afgeneem te word waar hy stap, inkopies doen en in ekonomiese klas vlieg.

In ‘n neutedop wil dit voorkom of die president goed begin het maar die taak om die Suid-Afrikaanse ekonomie te herstel, en dit uit die kloue van korrupsie en wanbestuur te red, is reusagtig. Daarbenewens is alle oë op hom terwyl hy poog om beleggersvertroue te herstel en groei en kredietgraderings te verbeter.

 

Jy werk hard en spaar om ‘n gemaklike aftrede te verseker. Maar terwyl daar baie inligting te vinde is oor hoé om vir aftrede te spaar, weet jy wat jou opsies is met aftrede?

Op aftree-ouderdom is daar twee algemene besluite wat lede van uittree-fondse en mense met uittree-annuïteite in die gesig staar:

  1. Hoeveel van hul spaargeld moet as kontant onttrek word, en
  2. Watter tipe annuïteit moet aangekoop word, en van waar?

Die antwoorde op beide vrae sal afhang van elke individu se omstandighede. In hierdie maand se uitgawe van Ecsponews verduidelik ons ​​die verskil tussen twee belangrike tipes annuïteite wat van toepassing is op aftrede: ‘n lewensannuïteit en ‘n lewende annuïteit. Ons ondersoek ook die redes waarom eenvoud koning is wanneer dit by enige tipe belegging kom. Ons filosofie, dat beleggings eenvoudig en deursigtig behoort te wees, is gebaseer op die ou tydwaarde-beginsel: dié wat dit verstaan, verdien dit… en dié wat dit nie verstaan nie, betaal dit.

 

Die verkiesing van Cyril Ramaphosa as Suid-Afrika se nuwe president bring ‘n einde aan ‘n era van onsekerheid en nuwe hoop en vertroue vir landsburgers sowel as beleggers plaaslik en oorsee. Om die droewige nalatenskap van die Zuma-era te herstel sal nie oornag kan gebeur nie maar sal tyd en geduld neem terwyl dit nougesette beplanning van die regering verg.

Die herstel van vertroue is krities om ‘n ekonomie te stimuleer en die 2018 Nasionale Begrotingsrede het dié beginsel onderskraag. Hoewel die begroting nie beleggings wesenlik geraak het nie, sal ons almal die gevolge van hierdie begroting in die komende maande voel. Veral die styging in BTW en voorgestelde styging in die prys van brandstof met 52c per liter.

In hierdie uitgawe van Ecsponuus lig ons die elemente van die Begroting uit wat beleggers direk sal raak. Ons oorweeg ook die stappe wat beleggers kan neem om hulself te beskerm in tye van politieke en/of ekonomiese verandering. (Laai ons 2018 belastinggids vir individuele beleggers en trusts af en onthou om dit in u Ecsponent My finansiële lewe lêer te liasseer vir maklike verwysing.)

 

Niemand sal kan sê dat die markte, ekonomie en politiek gedurende die eerste maand van 2018 saai was nie. Die markte beleef die gevolge van die Steinhoff-saga en nou moontlik ook Capitec ná die vrystelling van Viceroy se nuutste verslag. Intussen versterk die rand toenemend sedert Cyril Ramaphosa verkies is tot leier van die ANC.

Dit is maar net die begin, want Februarie is ‘n deurslaggewende maand vir ons ekonomie en verbruikers. Nie net word die staatsrede gelewer nie, maar ‘n begroting volg wat almal in die land gaan raak, aangesien die graderingsagentskappe daarna oor die finale lot van ons ekonomie gaan besluit. En wie weet, dalk is daar ‘n wesenlike verandering in die land se leierskap…

Maar terwyl hierdie politiese en ekonomiese gebeure afspeel, wil dit lyk asof Jan Alleman se bekommernisse meer gefokus is op werksekerheid as enige iets anders. Dit is selfs belangriker as die misdaad wat ons almal raak. Met ‘n werkloosheidsyfer van 27.7%, is dit ten volle te verstane.

Daarom fokus hierdie uitgawe van Ecsponuus op maniere hoe jy jouself kan beskerm teen die verlies van ‘n salaris of vaste inkomste. Ons kyk ook na die koste van onderrig en gee raad oor hoe ouers in hul kinders se toekoms kan belê deur voorsiening te maak vir gehalte onderrig.

 

Na die wipplank-ryery van die afgelope 12 maande, kon ons ‘n sug van verligting slaak na die onlangse verkiesingskonferensie van die ANC. Of die uitslag positief of negatief is sal net tyd leer, maar die sielkundige afwagting is nou iets van die verlede en ons kan die nuwe jaar met nuwe moed betree.

2018 hou groot belofte in te midde van politieke veranderinge wat hopelik positiewe gevolge vir ons ekonomie sal hê. Dit kan ook net nuwe hervormings en ekonomiese tendense tot gevolg hê wat Suid-Afrika aantrekliker vir beleggers maak; ʼn nuwe era van stabiliteit.

Dit is ook ons wens vir die land en sy mense, beleggers en ander belanghebbendes: Dat 2018 ‘n jaar van vrede, stabiliteit en positiewe groei sal wees. Terwyl ons op nuwe blaadjies fokus, deel ons sommer ook die resep om ‘n miljoenêr te word deur beleggings. Die aanvang van die nuwe jaar is die beste tyd om te begin werk aan daardie doelwit.

2017 Afrikaanse Nuusbriewe