Personal Finance Magazine Vol. 84 - 3rd. Quarter 2020

Personal Finance quarterly magazine is the only publication in South Africa dedicated to giving you the information you need to manage your money wisely and grow your wealth. It is targeted at middle- and upper-income groups, at people established in their careers with families, and retirees. It also appeals to an aspirational younger generation, who are starting out in life and need guidance on managing their finances. The magazine contains in-depth, well-researched feature articles covering all aspects of personal finance: investments, insurance, retirement, banking, credit and debt, medical aid, financial planning, estate planning and wills.

South Africa
Independent Media Pty Ltd
4 Issues

in this issue

1 min
brave new world

No-one will deny that the Covid-19 pandemic and its accompanying state interventions – including, here in South Africa, one of the most draconian lockdowns in the world – are having devastating economic consequences. But not everyone has been affected to the same degree – at least not yet. For example, corporate salaried workers who have been able to work from home may have hardly felt any adverse financial effects. In fact, they may be rather enjoying not having to contend with rush-hour traffic and may even be saving money on monthly expenses such as fuel. However, for small businesses in the tourism and restaurant industries the situation is dire. These establishments employ millions across the country – one small family-run restaurant may alone provide a living for 15 people and their…

4 min
your letters

BENEFITS OF RAND COST AVERAGING I’m lucky to still be earning despite lockdown but my retirement savings have depleted significantly. Is the money I had invested gone forever? I feel depressed to keep contributing, and a little scared. – Name withheld Pierre Puren, a financial adviser from PSG Jeffrey’s Bay responds: It is understandable to feel this way during times of uncertainty but focusing on your investment goals will lessen the probability of making an emotionally driven decision. Keep in mind that your monthly contributions are effectively buying more fund units or shares during times of suppressed markets (rand cost averaging). To illustrate, imagine a farmer goes to purchase 100 avocado trees but the price has fallen 50 percent in the last month. He purchases double the trees for the same amount of money…

7 min
5 reasons why the future is female

Women are making more financial decisions than ever before. Understanding the implications of this will be crucial for firms in the personal finance and fiduciary industries if they are to remain relevant. As of this year, according to a study by the Boston Consulting Group, women are expected to hold 32 percent of global wealth – roughly US$72 trillion – and most of the private wealth that changes hands in the coming decades is likely to go to women. More than ever before, it is crucial for the personal financial and fiduciary industries to understand how and where women will choose to invest their wealth. The knowledge gained will change the way that financial advisers, tax practitioners and estate planners do business. Family offices will also be impacted, because women will no…

17 min
lockdown survival – lessons for small businesses

Inevitably, the spread of Covid-19 and its concomitant safety protocols, ranging from lockdown and social distancing to the banning of alcohol and cigarettes, has affected almost everyone on the planet. And predictably, it has become personal: a much-loved uncle died from coronavirus, and recently I learned that a relative in her mid-20s had tested positive. Multinational corporations have filed for bankruptcy, centuries-old firms have gone to the wall and countless family-run shops have been shuttered for good. Against that, and often in defiance of the odds, some small businesses have managed to survive. Their stories reveal a mixture of prescience, bravery, lateral thinking and old-fashioned luck – both good and bad. A case in point: a woman in my neighbourhood and her husband own a catering company, which transformed itself under lockdown…

11 min
personal insurance and the pandemic

It is not yet clear to what extent businesses will adopt the digital innovations introduced during lockdown, but there are early signs that South Africa’s short-term insurers are willing to abandon tried and-tested business processes in favour of something new. Insurers offering protection for personal assets such as buildings, household contents, and motor vehicles were faced with three challenges as the country entered lockdown on 27 March. The first of these challenges was how to continue operating under level five of the country’s coronavirus alert. Financial services providers were fortunate in that they were immediately placed on the “essential services” list, enabling them to continue business subject to complying with lockdown regulations. The second challenge emerged as the extent and likely duration of the lockdown became clearer. Short-term insurers were among the first…

7 min
is your domestic registered with worker the uif?

In his Monday morning email, “From The Desk of the President”, in mid-June, President Cyril Ramaphosa wrote that the pandemic has been a reminder of the deep inequalities that exist. But he also said it presents an opportunity for a “reset”. And we can start at home: if you employ a domestic worker, make sure you comply with the applicable labour laws. Bow Covid-19 affected domestic workers “After lockdown measures were instituted, we had a flood of calls from domestic workers who didn’t have food,” says Amy Tekié, co-founder of Izwi Domestic Workers Alliance. In April, Izwi surveyed 602 domestic workers and found that 26.5 percent were not going to work, nor being paid. A further 27 percent who were on leave had been paid in March, but were not sure whether they…