Personal Finance Newsletter - Volume 2013, Issue 391, 2013
Volume 2013, Issue 391, 2013
Source: Personal Finance Newsletter 2013, pp 1 –2 (2013)More Less
Recently I was reading a press release from a major asset management group, and I was struck by the fact that it told me absolutely nothing new. Don't get me wrong, it was good, but it was just a repetition of stuff that (hopefully) we all already know. There wasn't anything particularly sexy in it, no scorching hot asset or stock tip; it was all just sound, sensible, and heard-it-all-before advice.
Source: Personal Finance Newsletter 2013, pp 2 –3 (2013)More Less
Conventional wisdom states that everyone should aspire to owning their own home, and to have it paid off by the time you retire. For most people, this is good advice. But let us not kid ourselves - home-ownership is an expensive exercise by the time you take into account electricity and water, rates and taxes, and on-going maintenance. If you have a swimming pool, this maintenance extends to chemicals and regular cleaning, whilst keeping a garden in any sort of presentable state takes lots of time and money.
Author Magnus HeystekSource: Personal Finance Newsletter 2013, pp 4 –5 (2013)More Less
Every day, like millions of South Africans, I switch on the radio or television and no matter what channel or station I choose, I am guaranteed to hear the same information, almost in the same sequence, on the hour and halfhour: "And here are today's financial indicators. The gold price is ABC, the rand is DEF and the JSE Alsi is XYZ."
Author Warren IngramSource: Personal Finance Newsletter 2013, pp 5 –6 (2013)More Less
Would it surprise you to know that there is almost no relationship between the way the economy grows and the stock market's performance? If you are spending time worrying about the economy when making your investment decisions, it is likely that you are wasting your time.
Source: Personal Finance Newsletter 2013, pp 6 –7 (2013)More Less
This month we're going to take a look at five common mistakes that people make in their investment careers. These mistakes are not the result of errors of thinking, they're errors of judgement; mistakes in action, not in thought. On the plus side, while you can't avoid thinking like a human being, you can certainly avoid these common blunders.
Author Steven NathanSource: Personal Finance Newsletter 2013, pp 7 –9 (2013)More Less
According to our Finance Minister, Pravin Gordhan, only about 10% of South Africans enjoy a "decent retirement". Part of the reason for this situation is the retirement industry itself, which often follows practices that are not optimal in helping South Africans achieve their retirement savings goals.
Source: Personal Finance Newsletter 2013, pp 9 –10 (2013)More Less
When analysing the portfolios of the top-performing South African general equity funds, it is very clear that fund managers have very different views on the outlook on big rand hedge industrial stocks on the JSE. Some still love them, while others believe they offer no value at current levels and won't touch them.
Author Brad PrestonSource: Personal Finance Newsletter 2013, pp 10 –12 (2013)More Less
An investment manager's role is to help provide for the future welfare of investors by striving to maximise the returns on their savings and retirement investments. It is important to remember that those savings will be enjoyed by investors within a broader environment. If a member's retirement fund is invested in companies that have a long-term negative environmental or social impact on the broader society, this could reduce the value of their retirement savings as any such negative impact needs to be seen as an indirect tax on society as a whole.
Author Jeanette ClarkSource: Personal Finance Newsletter 2013, pp 12 –13 (2013)More Less
It was bound to happen at some stage. For the last year or so, new car inflation in South Africa was far below the average increase in the consumer price index (CPI) and flat. New cars were therefore, in real terms, not getting any more expensive. Combined with historically low interest rates and fierce competition between the manufacturers, manifesting in special deals and value-adds, it was probably a good time to buy a new vehicle if you needed one.
Author Geoff BlountSource: Personal Finance Newsletter 2013, pp 13 –15 (2013)More Less
Given the rand's recent wobble, the question most investors are asking again is whether to invest offshore or not and, if so, how much of their portfolio should be invested in other countries. Unfortunately for those who want a simple answer, there isn't one - much will depend on the investor's specific circumstances.
Source: Personal Finance Newsletter 2013, pp 15 –16 (2013)More Less
Given the recent rand weakness, many investors and fund managers are looking for ways to hedge their portfolios against movements in the local currency. One asset class that is drawing their attention is international property. To make it easier for them, there are property counters listed on the JSE that own exclusively international assets.