Money Matters January 2025 Welcome to our first newsletter of 2025. As the world navigates major global shifts, such as the return of Donald Trump to the White House, many are questioning: is this the beginning of a brighter era or the onset of turbulent times? South...
Economic and Market Overview: Quarter 4, 2024
Global equity indices saw gains in the third quarter of 2024, largely fuelled by enthusiasm for US tech stocks and optimism about a soft landing for the US economy.
Investment – Pulling It All Together
26 November 2024 Turning South Africa into 1 big construction site is the expressed ideal of ministers from the ANC and the DA. What is the state of play, and what are the prospects? 2 sectors: public and private 2023 GDP IN...
Avoid these blind spots when structuring retirement income
18 November 2024 In this article, we focus on the more recent retirement income themes that defined 2024 and discuss some potential blind spots when structuring solutions for pensioners. 1. Can offshore be too much of a good thing? In our...
Newsletter Issue 53
Money Matters November 2024 This has been a great quarter with much to celebrate—from the Rugby Championship win and recent cricket successes to the welcome pause in load shedding. Adding to this, recent interest rate cuts have fueled strong market performance,...
Economic and Market Overview: Quarter 3, 2024
Global equity indices saw gains in the third quarter of 2024, largely fuelled by enthusiasm for US tech stocks and optimism about a soft landing for the US economy.
Seeking a bridge for South Africa’s troubled waters
As South Africa emerges from a period of intense load shedding, new challenges loom in the form of water risks. Deteriorating water quality and increasing disruptions to supply have become pressing issues, particularly in Gauteng, the country’s economic hub.
Some you win, some you lose
In the whirlwind of early October, South Africa witnessed pivotal shifts in both policy and politics. The government’s new visa regulations signify a significant step forward in making the country more accessible to foreign workers…
Economic and Market Overview: Quarter 2, 2024
Global equity indices saw gains in the second quarter of 2024, largely fuelled by enthusiasm for US tech stocks and optimism about a soft landing for the US economy.
Recognising India’s Place in the World Today
India’s growing influence on the global stage is undeniable. From its youthful population to its rapid digitization and commitment to clean energy, India is carving out a unique position in the world.
Understanding the latest tax changes for South African Trusts and non-resident beneficiaries
Recent tax law changes in South Africa impact trusts and non-resident beneficiaries. This article breaks down the key aspects of these amendments and their implications.
Newsletter Issue 52
Money Matters August 2024 The mood is definitely lighter. After a controversial kick-off from France's Olympic opening ceremony, we're eager to see the best teams and athletes rise to the occasion as we witness this global celebration of talent and dedication. South...
Newsletter Issue 51
Money MattersIssue 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...
Economic and Market Overview: Quarter 1, 2024
The first quarter of 2024 was virtually the mirror opposite of the prior quarter i.e., a poor start but a very good period for markets overall.
Inflation, and the importance of investing for growth
By Paul Hutchinson 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...
Two-pot retirement reform: What members need to know
by Ninety One 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...
Economic and Market Overview: Quarter 4, 2023
The fourth quarter of 2023 was virtually the mirror opposite of the prior quarter i.e., a poor start but a very good period for markets overall.
Goals, Resolutions and the lack of Follow Through
Every year we start with good intentions and New Year’s resolutions. However, research suggests that fewer than 25% of us follow through on these intentions.
2024 – Once again electricity
Over the holiday period there were several important developments regarding the major issue facing the country, electricity.
Newsletter Issue 50
Money Matters January 2024 As we gear up for the eventful year ahead, the atmosphere is tense with anticipation and uncertainty. South Africa is on the brink of its most pivotal election since 1994, while the United States is set for a familiar face-off between Biden...
Economic and Market Overview: Quarter 3, 2023
The third quarter of 2023, despite a good start, was a difficult one for markets overall, primarily due to a big move higher in government bond yields.
Neither a one-day, nor a one-person job
In 2021, two researchers published a paper on corruption in the US between 1865 and 1941, a period infamous for its corruption.
Subsequent Lessons from the Past, Insights for the future: Two decades of change in the investment industry
Reflecting on the past two decades in the investment industry, and the significant changes that have occurred, can be extremely useful in helping us prepare for the future.
Wars of Attrition
Trying to time the markets, in contrast, relies on luck and turns out to be yet another battle of attrition – one that history has proven again and again more than likely ends as tragically as its violent counterpart, in which there rarely are any winners.
Newsletter Issue 49
Money MattersIssue 49 Oct 2023 Please ignore the previous newsletter. We note that there was a glitch with the links to the full articles. This has been corrected below. Amidst the deluge of headlines, spanning from war-torn regions like Russia/Ukraine and Israel/Gaza...
Economic and Market Overview: Quarter 2, 2023
The second quarter of 2023, despite many challenges and ongoing uncertainties, saw global markets post yet another set of strong equity returns after what was an already solid start to the year.
Trustees Beware
South African trusts with lay-person trustees are at risk of non-compliance due to recent changes in legislation. Discover the important updates and the potential consequences for trustees.
Finding Certainty During Turbulent Times
Learn how the decisions and trade-offs you make in the market will shape your financial future. Understand the risks investors face and how to mitigate them.
Integrating Economics and Foreign Policy
Discover the importance of integrating economics and foreign policy. Gain a deeper understanding of South Africa’s geopolitical considerations and the potential impact on its economy.
Newsletter Issue 48
Money MattersIssue 48 July 2023 In this edition of our newsletter, we delve into some of the pressing issues that have been making us South Africans uncomfortable, particularly in relation to USA, Russia and South Africa. There is a growing recognition of the need to...
Does the exchange rate really matter when investing offshore for the longer term?
Many SA investors are fixated on the exchange rate when making an offshore investment. Here’s why it matters less than you think.
Electricity distribution: A glimpse of what the future could be
A former Eskom engineer, his wife and two engineering sons (the Bosch family) have developed a practical example of how electricity distribution in South Africa will change over the next few years.
Economic and Market Overview: Quarter 1, 2023
The first quarter of 2023 proved to be no less eventful than 2022, although despite this, returns for the major asset classes were positive over the period.
Three common mistakes made with tax free investments
If you’re looking for a way to make your money work harder for you, consider a Tax-Free Investments (TFI).
Newsletter Issue 47
Money MattersIssue 47 April 2023 Have you ever found yourself overly focused on the exchange rate when investing offshore? Many South African investors tend to spend a significant amount of time trying to predict the direction of the currency, even though it may...
Electricity and Load shedding
Gramsci was referring to politics in Italy in the 1930s, but the quote also describes Eskom and load-shedding in South Africa in the 2020s…
Economic and Market Overview: Quarter 4, 2022
2022 was an eventful and extremely challenging year. The main underlying culprit for the disappointing equity and bonds market returns last year was high and rising inflation
Your 2023 financial planning checklist
The decision around your investment and retirement assets will be one of the biggest decisions you’ll have to make. However, investments are only one aspect of financial planning.
The Investment Case for South African Equities
Fiscal consolidation and meaningful policy implementation is essential to restore investment confidence and a meaningful growth path.
What can financial markets expect in 2023?
Investors are probably eyeing 2023 with much trepidation after what turned out to be a rather painful 2022 for bonds and stocks alike.
Newsletter Issue 46
Money MattersIssue 46 December 2022 / January 2023 We all want to be well informed yet in today's world of information overload, this can be simply overwhelming. We hope to make it easier for you to discern what is interesting and important from what is simply ‘noise’...
Newsletter Issue 45
Money MattersIssue 45 October 2022 / November 2022 Avoid making your investment portfolio your hobby - doing so will be detrimental to your long-term outcome. We have seen many examples of clients who ‘stalk’ their investment values. This can be true for certain...
What is Greylisting?
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body…
Economic and Market Overview: Quarter 3, 2022
The third quarter of 2022 was a tale of two halves. The first half up to mid-August saw most asset classes rebound from Q2 lows with the MSCI world Index returning 4.1%. This was largely due to investors pricing in less aggressive rate hikes…
War, Politics and Geopolitics
We don’t like uncertainty. War and politics introduce uncertainty that affects us. The discomfort caused by this uncertainty could lead…
It’s winter…and we’re discontent again
You can try trading in and out, but very few get that strategy right sustainably, and your advisor certainly would not recommend it.
Economic and Market Overview: Quarter 2, 2022
The big news in June was corporate activity from Prosus and Naspers, which will see the company sell part of their stake in Tencent to fund a buyback of company shares to narrow the discount to net asset value and unlock value for shareholders.
Resist any impulse to tweak the portfolio
Staying committed to your chosen investment strategy is the best policy. Financial success comes from acting on a plan.
DON’T EVER EXPECT THE AVERAGE
Would it not be great if you could simply rely on this 10% return to be dutifully delivered every year? Read this article to learn more.
Economic and Market Overview: Quarter 1, 2022
The fallout from Russia’s invasion of Ukraine and the heavy sanctions consequently imposed on the Russian state, its leaders, and associated businesses. Read this article to learn more.
Budget speech was far from boring!
The major benefit of increasing offshore exposure is access to a greater opportunity set and the ability to diversify more effectively. Read this article to learn more.
How Will Russia’s Invasion of Ukraine Affect My Investments?
With the current situation between Russia & Ukraine, your investments may be affected. Read this article to learn more.
Tech Bubbles, Inflation and Rapidly Rising Geopolitical Tensions
Read more about the 3 current risk factors that may impact your investment opportunities in February 2022.
Economic and Market Overview: Quarter 4, 2021
The following economic market overview looks at the performance over the 4th quarter of 2021.
Five Reasons To Be Optimistic About 2022
We thought it might be useful to also consider some of the reasons as to why the coming year might not be quite as bad as many would predict.
Five Key Questions To Understanding Climate Change
These 5 questions from “How to avoid a climate disaster” by Bill Gates provide valuable, practical insights into understanding climate change.
Why It Pays To Invest in Retirement Annuities
If you have some extra funds available, consider investing in a retirement annuity or tax-free savings account.
Economic and Market Overview: Quarter 3, 2021
The following market overview looks at the economic and market performance over Quarter 3 of 2021.
Cryptocurrencies: Do We Know Enough?
A cryptocurrency (crypto) is a digital or virtual currency that is secured by cryptography.
Dementia and Special Trusts
A solution for managing the financial affairs of individuals diagnosed with dementia, a medical condition causing mental decline.
Economic and Market Overview: Quarter 2, 2021
The following market review looks at the performance over the past quarter…
The centre is holding | by JP Landman
Alan Paton said in 1985, ‘South Africa is a place where you despair on Monday and hope on Tuesday.’
Foreign Inheritance Tax | SITUS
Will your overseas assets attract additional inheritance tax?
Economic and Market Overview: Quarter 1, 2021
The following market review looks at the performance over the past quarter…
Structural Reform : Slow but Steady | by JP Landman
South Africa has now been in a ‘demographic recession’ for six years because the population grew faster than the economy…
Feeling Blah? It’s called Languishing | by Adam Grant
This may be the dominant emotion of 2021. At first, I didn’t recognize the symptoms that we all had in common…
Why should I have a Financial Plan?
A Financial Plan should form the framework for your decision making.
Make sure your Plan is not fragmented and disjointed.
How do I know I’m in the right unit trust or share?
When choosing a unit trust, you are spoilt for choice. But how do you know you’ve picked the right one? In SA alone there are about 1,500 unit trusts, making the choice very hard.
Will I have enough liquidity on retirement?
We have witnessed may instances where our clients mistakenly believed that they had made sufficient provision for their retirement.
Tax and Estate Planning saving. How important is it?
Your total return is not just defined by your investment performance – it includes tax and estate savings achieved by blending the correct investment vehicles.
Ask yourself whether you’re paying unnecessary tax and estate costs?
Did your portfolio come about by default or design?
Think about your own portfolio…did it come about by default or design?
How would you rate your financial affairs out of ten?
Think about it for a moment: On a scale of 1 to 10, how would you rate your financial affairs?
Will my financial adviser provide assistance when I pass away?
We have helped many widows and widowers during these difficult times.
Our role in your financial affairs extends beyond your lifespan.
Does your Will align with your financial plan?
No one likes to think about their own death, which is why so many of us don’t revisit our Wills, or worse still, fail to have one. It‘s important to make sure that your financial plan and Will dovetail. If they don’t, it can lead to unintended consequences.
Are equities too risky for me?
If the requirement for the investment is short term (less than 3 years) then yes, including equities could be too risky. However…
Why not just keep my money in cash?
Think about the long-term opportunity cost lost when one invests in cash.
Is cash the safest place to invest?
Over the long-term, cash is your riskiest investment because unlike equities, after tax it will not out-perform inflation (the long-term investors true nemesis).
Can I give my assets to my children before I die?
Generally speaking, if you are satisfied that you have done a thorough needs analysis and you are confident that you won’t outlive your capital, then you could consider it.
Is having a Tax-Free Investment a good idea?
The benefit of compounded, tax free growth is best illustrated by Nic Andrew.
How often should I review my Will?
Your Will should be reviewed whenever a major change happens in your life, for example, birth of a child, death of a loved one, divorce.
Does it matter if my financial adviser is independent or not?
Think of it this way: How comfortable would you be if your doctor prescribed medication from a drug company that he owned or perhaps earned big commissions on, as opposed to prescribing the best medication out there for your needs?
Does my financial adviser need to be qualified?
Your retirement assets are one of the most important aspects of your life. Think about it, they dictate your and your family’s lifestyle going forward. Would you trust another professional who was not qualified?
Should I have more than one financial adviser?
Although there are many financial advisers in the industry, there are only a handful that have the unique skill set to engage in sophisticated high level planning that adds value across the spectrum of investments, tax and estate planning.
Will the current political scenario derail my retirement plan?
Have a good robust investment strategy in place and stick to it. Ignore the noise.
Will geo political and local events destroy my retirement plans?
If you want to be a successful investor, you must have a good robust investment strategy in place and stick to it.
What is financial pornography?
It’s a phrase used to describe sensational media coverage.
Who is looking at the big picture?
You don’t want to be unintentionally pulled in different directions by your accountant, your fiduciary attorney, your corporate attorney and your financial advisor.
How does one determine a realistic return?
The return has to be measured as a real return, which is a return after inflation.
What percentage of my portfolio should be invested offshore?
Firstly, get your investment strategy right.
Should you be investing offshore given where the rand currently sits against the dollar?
Currencies are unpredictable.
Although there are exceptions, generally, our view is that it doesn’t really matter where the rand is, it matters where your needs lie.
What does a Financial Adviser do for you?
Your financial adviser needs to be conversant in the Income Tax Act, the Estate Duty Act, the Wills Act, the Pensions Fund act…
Who is Stone Wealth Management?
We are a financial planning practice focused on the high net worth individual who has investable assets of R10 million or more.
What is the biggest destroyer of wealth?
Human emotion is without a doubt the biggest destroyer of wealth.
What should I do in times of market uncertainty?
Remember that human emotion is the biggest destroyer of wealth and in uncertain times, the best thing you can do, is nothing.
What should investors be doing right now during this crisis?
My advice to this group is to do absolutely nothing, simply stay the course.
Should I try and do it alone?
The decision around your retirement assets will be one of the biggest decisions you will ever have to make. So why would you want to do it alone?
Exchange Control and Emigration Matters
The Taxation Laws Amendment Act 2020, and the Tax Administration Laws…
Personalised medicine: The next leap forward for health care?
The impressive speed with which the world has been able to develop a vaccine for COVID-19 and…
Economic and Market Overview: Quarter 4, 2020
The following market review looks at the performance over the past quarter…
COVID-19 vaccine supply | by JP Landman
A proverbial storm has developed around South Africa’s procurement, or the perceived…