Recent headlines about inflation, oil prices, the Rand and global politics can make it feel as if something unusual is happening in markets. In reality, market volatility is normal. Financial markets move in cycles. Prices rise, fall, and sometimes react quickly to global events or economic news. While headlines change constantly, the principles of long-term investing remain the same. Your financial plan was never designed around perfect market conditions. It was designed to work through uncertainty. […]
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Passive Investing: The Power of Autopilot
Investing often feels like it should be complicated, but some of the most successful strategies are actually the simplest. Passive funds have surged in popularity for a reason: they offer a cost-effective, transparent way to grow wealth without the stress of constant market-timing. What Exactly is a Passive Fund? Think of a passive fund as a “mirror.” Instead of a manager trying to guess which individual stocks will win, the fund aims to replicate the performance […]
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Picking a Winner: How to Evaluate Active Funds
In our previous post, we explored how actively managed funds can provide agility and the potential for higher returns. However, the success of an active strategy depends heavily on the skill of the manager. Not all funds are created equal, and “fee drag”—the impact of higher management costs—means you must be selective. Here is how to evaluate whether an active fund earns its place in your portfolio. 1. Look Beyond the Track Record While historical performance […]
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Sometimes, the best action is inaction
Many investors are drawn to the fast-paced world of buying low and selling high, chasing the thrill of timing the market for quick profits. Yet, there exists a timeless strategy far removed from the frenetic quest for immediate gains: embracing the power of staying invested over the long term. This approach, preferring ‘time in the markets’ rather than ‘timing the markets,’ encourages patience and a steady hand over speculative bets. The challenge with market timing is […]
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The Solomon Paradox
Imagine possessing wisdom so profound that it becomes legendary, guiding nations and solving the most intricate disputes, yet finding oneself ensnared in personal quandaries with no clear path forward. This is the story of Biblical King Solomon, a figure whose life embodied what we know today as the Solomon Paradox—the intriguing disparity between offering wisdom to others and applying it to one’s own life. The very wisdom that made Solomon a figure of legend seemed to […]
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Two lessons for investors
In the journey of personal finance, where the currents of market trends and economic forecasts constantly shift beneath our feet, two principles stand as beacons to guide us through. These aren’t just strategies but rather philosophies that are time-tested and time-honoured. Principle #1: Steering Beyond Economic Forecasts Trying to forecast what’s going to happen in our economy can be similar (although less accurate) to weather predictions for sailors; it’s useful, but often fraught with uncertainty. They […]
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Highlights from the 2024 – 2025 National Budget
In our latest exploration, we delve into the intricacies of the recently unveiled 2024 – 2025 National Budget. Our goal is to demystify the financial jargon and highlight the components that matter most to you. With a keen eye on the government’s financial manoeuvres and their ripple effects on your pocket, let’s dive into what this year’s budget heralds for the individual taxpayer and investor. Government’s Financial Blueprint The Finance Minister’s latest budget presentation was much […]
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Safeguarding your family wealth with a trust
In the intricate realm of financial planning, trusts emerge as a beacon of strategic estate management, offering a tailored approach to safeguarding family wealth and assets. Far from being a mere financial instrument, trusts embody the art of foreseeing and shaping one’s financial legacy, transcending mere wealth accumulation to ensure the preservation and seamless transfer of assets across generations. This adaptability and foresight make trusts a cornerstone of sophisticated estate planning globally, albeit with nuances tailored […]
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Balancing our need for control
At the heart of financial planning lies a universal truth: we plan to gain control over the unforeseen and to navigate life’s uncertainties with confidence. As Lyall Watson, the renowned biologist and writer, insightfully observed, “We survive by controlling our environment. And control is made possible by information.” This principle, deeply rooted in our survival instinct, finds profound relevance in the realm of personal finance and wealth management. It’s about harnessing the power of information to […]
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February is retirement annuity month.
What is a retirement annuity (RA)? It is a retirement fund that everybody can contribute to. Many taxpayers, especially businessowners make ad-hoc payments to RAs before the end of February to reduce their tax liability. What are the benefits of an RA? You are investing for retirement. Your contributions to it are tax-deductible within certain limits, and the first R550 000 can be withdrawn tax-free at retirement, subject to the Income tax Act.; Investment growth is […]
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