The 57.5% majority that the ANC received should
strengthen President Ramaphosa hold on power in the ANC
This should enable him to streamline policy
making and effect meaningful change
It is anticipated that President Ramaphosa will
decrease the number of cabinet ministers
The DA lost support based on mixed messages and
internal fighting; this should lead the party to introspection and re-invigorate
them to come back stronger in the 2021 Municipal elections
The EFF was the biggest gainer with their
message of increased populism
Marie Antelme, an economist with Coronation, gives her post-election analysis and what it means for South Africa. To read the full article please click here.
Marriott launch the Essential Income Fund
Designed and managed for South African investors looking to
maximise their retirement lifestyles without the risk of running out of
capital, the Marriott Essential Income Fund is a simple, low-cost and effective
solution for retirement.
Marriott’s unique Income Focused investment approach,
combined with an optimal long-term blend of the highest quality South African
dividend paying companies (both property and equities) and government bonds,
enables investors to avoid capital erosion by matching their income requirements
with the income produced by the portfolio.
Using the Essential Income Fund to “Spend the Income Not the
Capital” provides the following benefits:
Sustainable inflation-hedged income for life
A higher “safe” drawdown than the traditional living annuity approach
A similar income yield but with greater flexibility than guaranteed annuities
Exposure to quality companies with good long-term dividend and capital growth prospects
This Fund is ideally suited for clients who are seeking an income for life and are who wish to maximise their retirement lifestyles without the risk of running out of capital.
“Investing puts money to work. The only reason to save money is to invest it.” Grant Cardone
Investors should consider the importance of investing early, whether this is for their own financial future, that of a child or grandchild starting early is the key to getting ahead. The cost of delay in not getting started early. An investor
who starts contributing ten years earlier to their investment savings will
after 40 years have over 60% more than there counterpart who started saving but
only ten years later.
Let’s look at an example.
Jack and Jill (20) both want to save an amount of R1, 000
per month escalating annually by 5%. Both investors are realistic with their
investment goals and believe over the long term that an average annual return
of 12% is achievable. Jill believes she needs to start saving straight away, while Jack believes he can afford to wait a bit longer and only start saving 10 years from now. Both Jack and Jill would like to be able to retire at age sixty.
Assuming both Jack and Jill follow through on their investment goals, Jack will have an amount of R4.6 Million rand at retirement. Jill will retire with a retirement savings fund of over 15.6 Million Rand. That’s an extra R11 Million Rand that Jill will have at retirement which Jack will have lost out on. By Jack delaying his investment by 10 years he would have saved R650, 000 in premiums however his capital loss would have been over R10.5 Million Rand. For Jack to retire with the same amount of savings as Jill, Jack would have needed to contribute 3 times the amount that Jill was contributing.
So what are you waiting for? Click here to start your journey to financial freedom today
On Wednesday last week, South Africa’s Finance Minister
delivered his maiden budget speech. Minister Mboweni attempted to limit the
negative impact on economic growth by not increasing the tax rates for natural
persons. Some of the main points from the budget were the following:
No income adjustments to personal income tax.
Rebates and tax-free thresholds marginally
increased for natural persons.
No increase in the annual interest exemption.
Tax-free investments limits remain the same;
R33,000 annual allowance with a R500, 000 lifetime allowance
Medical tax credits remain the same.
Invitation to attend our first presentation of 2019
We would like to remind you that we will be hosting the
chief investment officer of Allan Gray, Andrew Lapping, on the 6th
of March 2019.
Andrew will be providing a market update as well as sharing
his views on the current state of the South African stock market. To make sure
you do not miss out on your seat at this event simply click on the RSVP.
Date: Wednesday 6th March 2019
Time: 11h00 for 11h30
Venue: Allan Gray Offices, 1st Floor, Brookes on
the Bay, Humewood, Port Elizabeth.
Don’t miss out on the opportunity to reduce your tax
February 28th is the end of the financial tax
year. For those investors who have not contributed the maximum amount into a
retirement annuity, this is a great opportunity to minimise your tax liability
whilst making provision for your retirement. Investors who wish to make any
last minute contributions can click on the following link.
The Marriott Retirement Annuity attempts to assist investors
in being able to predict what amount of income they may expect once they come
to retire. This is based on Marriott’s investment philosophy of investing in
local and international companies that will continue to produce both reliable
and growing income regardless of the market conditions. By implementing this
investment strategy Marriott are able to reasonably predict what your income in
retirement will be. For more information or to invest in the Marriott
Retirement Annuity please click here.
“In the business world, the rearview mirror is always clearer than the windshield.” Warren Buffett
