Invest With FIRE and Never Look Back
What do you think of when you hear the word ‘fire’? Smoke and helicopters, the sound of a gun? The feeling in the back of your throat when you take a sip of whisky? Maybe even being fired in a recessionary economy? All pretty negative stuff, apart from the whisky…
But we’re not talking about actual flames. FIRE is an acronym for Financial Independence, Retire Early. It’s about maximising your saving power through reduced spending, greater earnings and wise investment. Read on to find out how it works.
Why too Much of a Good Thing Can be a Bad Thing
Everyone knows not to put all of their eggs in one basket. A smart investor always has a portfolio with a number of different parts to it.
The most important reason for doing this is to spread your risk around. You don’t want what happens to just one company, or one industry, or even just one country to determine what happens to all of your money.
In this article we look at why this is such an important consideration, and why even when you think you’ve found the one good thing, it’s best to spread your investments around.
Why an Endowment is One of the Best Ways to Invest Offshore
The South African economy represents less than 1% of global economic activity and returns on local equity have been average over the last few years.
Investing offshore – over and above the contributions to your local retirement fund – is crucial. A healthy portfolio should be split across regions and currencies to hedge against the depreciating rand, and to gain from higher economic growth in other jurisdictions. But with Regulation 28 blocking the way, what other options do you have?
This month we explain how endowments work.
Is Money Stress Taking a Toll on You?
If you are worried about being able to pay off your debt each month, or if you will be unable to meet an unexpected expense, you are not alone. A recent survey found that more than two-thirds of South Africans are feeling some kind of financial stress.
Having these concerns about money spills over into many other parts of people’s lives, including their jobs, their relationships and even their health.
In this article we look at the causes of money stress. And, more importantly, how to address it and deal with its potentially debilitating impacts.
Should You Top Up Your Retirement Annuities Now?
With the end of the tax year approaching, talk to a professional about whether you should top up your retirement annuities (RAs) this month! Remember that all contributions into an RA reduce your taxable income, and therefore the amount of tax you pay.
You can contribute a maximum of 27.5% of your taxable income to retirement funding each year, up to R350,000. It may make sense for you to use as much of that limit as you can.
Budget 2023: The Minister of Finance Wants to Hear from You!
“Finally, we pay tribute to the millions of South Africans, whose resilience and courage during these times of pandemic and economic hardship, is an inspiration to all of us who have the privilege to serve in the public sector.” (From the 2022 Budget Speech)
Finance Minister Enoch Godongwana has invited the public to share suggestions on the 2023 Budget he is expected to deliver on Wednesday 22 February 2023.
Go to National Treasury’s “Budget Tips for the Minister of Finance” page and fill out the online form.