Sometimes just getting organised is the first step in taking charge of your finances

There are many people who are interested in taking charge of their finances who just don't know where to start. Normally, deciding that you want to do something about your finances AND FOLLOWING THROUGH on that decision by finding someone to help you is a good start. But it can be intimidating. I know that … Continue reading Sometimes just getting organised is the first step in taking charge of your finances

In investing: What THE most important thing is to get right?

When it comes to your investment outcomes, what is the one most important thing you need to get right? What is the one thing that if you get it right will give you the best chance of meeting your investment goals over the chosen time periods?  What is the thing that I as an adviser … Continue reading In investing: What THE most important thing is to get right?

Investing for beginners: Assets, asset classes, asset allocation & asset managers

In investing there is a lot of jargon and in order to understand the recommendations which I will make when I work with you, it is important that you understand what various terms mean. Alpha A risk adjusted measure of the “excess return” provided by an investment compared with a benchmark. Alpha can be positive, … Continue reading Investing for beginners: Assets, asset classes, asset allocation & asset managers

Investing for beginners: Diversification

Diversification Diversification is strategy of investing in multiple asset classes and among many securities in an attempt to lower overall investment risk. Whilst we all know that, broadly speaking, equities return more than bonds which return more than cash over time, it is also true that these average returns are not normal. The table below … Continue reading Investing for beginners: Diversification

GMO’s 7‐Year Asset Class Real Return Forecasts

GMO have released their monthly forecast of what they believe the probable asset class returns will be over the next 7-years. Comment: Asset class / index views are a broad generalisation and should not be interpreted as meaning that all/every component is the same. Within each of these asset classes one will find assets which … Continue reading GMO’s 7‐Year Asset Class Real Return Forecasts

PSG: Be selective when investing offshore and don’t discount South Africa

Writing in the latest PSG Asset Management quarterly newsletter my friend and former colleague, Philipp Wörz has highlighted that it's not just foreign asset managers who think that developed market valuations are starting to feel quite stretched, but local managers are very aware of this too. "Global equities have been in a bull market ever … Continue reading PSG: Be selective when investing offshore and don’t discount South Africa

Living annuity drawdown rates up in 2016

According to a media release yesterday from ASISA*, living annuity policyholders withdrew on average 6.62% of their capital as income in 2016, which represents a marginal increase in the 6.44% living annuity drawdown rate recorded for 2015. An increase in the drawdown rate is concerning in an environment of relatively meek domestic returns over the … Continue reading Living annuity drawdown rates up in 2016