Last year on the 15th of March, we saw one of the most significant single-day drops in markets with an 8.5% drop in one day.
A year later, we are 58.8% up, which indicates that staying in the market and staying calm is the best way to create wealth. If you decided to panic and withdrew your funds, you would have lost out on at least 58.8%.
In 2021 you can certainly expect more volatility but remain calm, and we will get through the volatile times.
“The only person that gets hurt on a rollercoaster ride is the person that gets out.”
| 1 week | 1 month | 1 year | YTD | ||
|
Returns (to 12/3/2021) |
SA Equity (ALSI) | 0.0 | 3.7 | 58.1 | 15.5 |
| SA Bonds (ALBI) | -0.7 | -3.8 | 10.7 | -1.2 | |
| SA Property (ALPI) | -0.3 | 3.0 | -3.4 | 9.3 | |
| Global Markets (MSCI ACWI in ZAR) | -0.3 | 1.8 | 44.7 | 6.6 | |
| SA Cash (South African IB MM) | 0.0 | 0.3 | 4.9 | 0.6 |
You will also notice that cash (bank interest and money market) has now started dipping below 5% and will continue to decrease with interest rates remaining low. Thus it would be best if you started looking at other vehicles to give your money the option of growing faster than inflation.
Offshore investments for retirement
Offshore investments have always been an option reserved for the ultra-wealthy, but did you know you can now start investing in dollars outside South Africa for as little as $200pm (roughly R3000)? Many clients have also begun using the endowment structure as a new way to supplement their retirement, and it might be an excellent option for you as well.
Get in touch, and we can see if you are a fit for this option.
Easiest ways to lower your tax
- Contribute to a retirement product (RA, Pension or Provident)
- Make use of a tax free savings investment (not through a bank)
- Donate money to a SARS registered NPO (10% of the donation is tax deductible)