Money Matters
Issue 51

April 2024

As political parties (like chameleons) deftly adjust their strategies to match the shifting tides, Stone Wealth Management remains steadfast in our unwavering commitment to advising clients to stay the course with their investment strategies, regardless of the changing world around them.

While the political arenas of South Africa and the United States continue to capture attention, our focus turns to matters closer to home: the impending implementation of the two-pot retirement system and the pressing issue of inflation.

As prices rise and purchasing power fluctuates, navigating this inflationary landscape requires a keen understanding of market dynamics and prudent risk management. Our analysis sheds light on the current inflationary trends and offers insights into potential strategies for safeguarding portfolios in the face of uncertainty.

Stone Wealth Management stands firm in advocating for the consistency and stability of our clients’ investment strategies, ensuring their long-term financial success.

The South African retirement fund industry will shortly be undergoing a significant change with the introduction of the new two-pot retirement reform proposals.

National Treasury has published draft legislation to give effect to these proposals. It is envisaged that once the legislation is promulgated, the effective date for these changes will be 1 September 2024.

Many of us intuitively think that our personal inflation rate is higher than the Stats SA calculated inflation rate. But is it?

A colleague of mine came across the following clipping from The Citizen newspaper of 1986, which allowed him to investigate price changes of this basket of household goods. While it obviously does not allow for a robust study of inflation (as is the case for the much-quoted Big Mac Index) and is not a representative basket of goods, it does provide some interesting insights and important financial planning lessons.