Understanding the Two-Pot Retirement System

Effective 1 September 2024, retirement fund legislation will introduce a new two-pot system. For the first time, retirement annuity investors will be allowed to access a portion of their retirement savings before reaching the age of 55 or retirement.

In this newsletter, we simplify the two-pot retirement system and highlight the costs and tax implications of making early withdrawals from your retirement funds.

3rd Quarter 2024 Market Outlook – SA should be celebrating

The Cabinet and a New Dawn for South Africa

The much-anticipated cabinet has been announced. While not perfect, it’s a relief that it appears reasonable. Negotiating and balancing these positions must have been tough, especially getting the ANC to relinquish power they’ve held for years.

The new cabinet is large, with 32 ministers and 43 deputy ministers. This initial bloated cabinet is a compromise to include most parties in the Government of National Unity (GNU). While it leans towards the ANC, a more representative and less powerful ANC is preferable to the previous dysfunctional cabinet. Of the 32 cabinet positions, the ANC has 21, the DA 6, and smaller parties take up the remaining 5. This is not in proportion to the GNU members and election outcome.

SA Election 2024 – We Could Be Celebrating

South Africa could be celebrating! Firstly, we’ve triumphed with a peaceful election and a result that was realistically near perfect. For now, forming a GNU is the best path with Ramaphosa remaining as President, whilst the DA must engage constructively.

A humiliated and wounded ANC has one last chance to regain support by delivering jobs and basic services, which can only take place with strong economic growth.

Investonline: Living Annuity Webinar recording and slides

Our recent Living Annuities webinar generated great interest – unpacking how they work, their benefits, and the role they play in financial planning. We provided an example of how future Living Annuity income is impacted when reaching the 17.5% income ceiling, which highlights the importance of appropriate retirement planning.

The benefits of reorganising your investments

Finding true financial planning clarity amidst the fog of uncertainty and a whirlpool of financial strategies can be challenging.

In this article, we look at the advantages of restructuring your investments with the guidance of a skilled financial planning professional.

Investment lessons for uncertain times

Currently, there are numerous political and geopolitical uncertainties concerning investors.
These uncertainties can heighten investor behavioural biases, leading to emotional decision-making.

We look at lessons on how to mitigate irrational actions that could erode your wealth during periods of heightened risk.

2nd Quarter 2024 Market Outlook

Global equity markets have continued to soar since the end of last year, when it became certain that interest rates had peaked. The conundrum is that markets have ignored all possibilities that interest rates are likely to decline more slowly than expected.

Small investment choices have large consequences over the long-term

Investing through the right investment vehicles and structures can add significantly to the growth of your wealth, particularly when compounded over the long term.

We highlight some simple, yet critical actions that, when compounded over time, can substantially bolster your financial health.

Investonline: Offshore Investment Webinar recording and slides

Last week we hosted a webinar on offshore investing and the benefits of using International Wrappers. We provided an example where we compared a normal offshore investment to an Internationally Wrapped investment and how the Wrapper can outperform after-tax and estate costs.

Why You Should Partner with a Financial Planner

Partnering with a qualified and experienced financial planner can add enormous value by helping you identify and achieve your financial goals, establish a financial plan, invest your savings appropriately and protect your capital against unnecessary risks.

In this newsletter, we will explore key benefits of partnering with a financial planner and the pitfalls of managing your own money.

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