The value of RAs… Include them in ‘Plan A’ for every client

Question around the value of Retirement Annuities Q(RAs)  within  long  term  financial  planning  are frequently raised. The apparently simple response is complicated  by  constantly  changing  regulation,  most notably the Income Tax Act. Over time I have witnessed and participated in countless debates – and read many articles – on the merits of RAs. The topic attracts controversy with viewpoints often varying according to which side of the fence one sits…

Is cash king?

It has been a good few years for cash. As shown in Graph 1, over the past three years cash (i.e. highly liquid assets, like money market funds and fixed-interest assets, such as Treasury bills) has delivered decent returns, when compared to equities and bonds, with significantly less volatility amid ongoing global uncertainty. This has been particularly pronounced this year, with cash delivering 6% versus -9.38% for the FTSE/JSE All Share…

Yes, markets were dreadful in October…

But it is not all doom and gloom. It is the month of October, the most beautiful month of all … The translation does not do it justice, but this is more or less what C Louis Leipoldt wrote when he captured the explosion of colour and revival in nature in his Afrikaans poem Oktobermaand. Market watchers will probably describe October 2018 with a single colour: red. While the local market…