The last 12 months have been extraordinary, driving relentless market volatility and massive sector divergence. With vaccine programs being rolled out, light is appearing at the end of the tunnel. Please read our 2nd Quarterly Market Outlook where we review the risks and opportunities in the markets.

Tax-Free Savings Accounts (TFSA) should form part of your retirement plan as they can provide a valuable “boost” to your lifestyle. We provide some guidelines on how better to use a TFSA.

Technology shares have been a major driver of global markets over the last eight years. As specific risks mount, such as regulatory scrutiny and rising interest rates, the sector’s high valuations are being questioned.

The “million-dollar question” is how much money do I need to retire? The maths can be simple, but there are many other complexities. We provide a range of retirement options and some important issues to consider when retiring.

Provident and provident preservation fund rules are set to change effective 1 March 2021. In essence, contributors after this date will need to purchase an annuity at retirement, unless you are 55 years and older.

One’s biggest investment risk is not taking on any risk. The party is over as far as receiving returns of 7% to 9% from very low risk money market and Income funds. With low interest rates (3% to 4%) here for the next few years, investing in some growth (risk) assets is key to beating inflation after tax.

2021 will continue to test our patience and resolve with restrictive living, a weak economy, COVID 19 health risks and a volatile investment market. We all need to hang in there and hold on tight as normality should return in 2022, barring the scars of the economic fallout from the pandemic.

As financial advisors, the year has challenged our rationality and resolve. But, thankfully, with our 30 years of investment experience, our deep understanding of markets has enabled us to guide our clients efficiently through this volatile and uncertain time.

The Rand is staying true to form – very volatile. However, the long-term outlook remains very negative. We provide an analysis on forecasting the Rand with some key decision points and how to incorporate an offshore strategy into your investment portfolio.

In this extraordinary time of political and economic change, which is being fanned by online “fake news”, we need to reflect on being rational to get through this time of extreme uncertainty. Equity markets are fluctuating wildly. The JSE collapsed 35% into March and subsequently recovered, to then decline 11% in the last 3 months and then sharply rebound. Similarly, the Rand/ Dollar spiked to 19 (+33%) and since fluctuated as much as 8% in a few days as it moved down to 15.6.
What do we need to do to be rational and reasonable in this extraordinary time?