Personal Finance Magazine Vol. 86 - 1st. Quarter 2021

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

2 min
big spender

Since the 2008 global financial crisis, economists and governments of developed countries have converged on the Keynesian view that the best way to handle a financial crisis is to spend your way out of it. The difference between how the US and Europe emerged from the crisis made it clear: austerity only makes things worse. The question then becomes where should the money be spent? After the 2008 crash, the Obama administration bailed out big finance, slashed interest rates and embarked on quantitative easing, which was wonderful for investors, who benefited from the longest bull market in US history. But was it beneficial for the man in the street? The answer appears to be no, or else working and middle-class Americans would not have become so disenchanted in their government that they…

1 min
expert advice on dealing with sars

Practical Guide to Handling Tax Disputes Author: Nico Theron Publisher: LexisNexis Retail price (print or e-book): R546.25 Taxpayers and businesses are under increasing pressure as a result of the economic downturn and impact of Covid-19. Equally, the South African Revenue Service (SARS) is under pressure to meet revenue targets. A possible outcome of this scenario, according to experts, is the potential for an increased number of tax disputes in the near future. “Tax disputes have become increasingly complex,” says Nico Theron, tax expert and author of the newly released guide by LexisNexis South Africa. “There is no single detailed analysis of the rules and, as a result, there seems to often be various interpretations as to what the rules actually are, which makes for increasingly complex outcomes.” The guide spells out taxpayer options, providing fair…

1 min
intriguing mix of tales about money

Upshot: Stories of Financial Futures Curated by Lauren Beukes Publisher: RisCura Available online, to read or to listen to, on This anthology of fiction about financial realities, by a group of top writers and curated by internationally acclaimed author Lauren Beukes, launched online in January. The seven stories take society’s present concerns and translate them into future scenarios that require readers to think about their life and investment choices in new and revelatory ways. Contributors include Tade Thompson, Sam Beckbessinger (whose financial self-help book, Manage Your Money Like a F***ing Grownup, was a runaway success), Angela Makholwa, Bongani Kona and Mohale Mashigo. “The stories range from a rollicking pension schemer wheeler-dealer with space bikes to a blue-economy love story set in the kelp forests, and an AI financial adviser that wants to make life decisions for…

3 min
your letters

RETIREMENT FUND SHARE PORTFOLIO I have heard you can include a share portfolio as part of some retirement products. I am considering this, as my RA has not been performing well at all. In fact, it seems to be losing value. What are the advantages and disadvantages of doing this? I have about R2.5 million in a preservation fund from when I left my last job. I am still saving in my current employer’s pension fund and I am retiring when I’m 65, in 10 years’ time. – Name withheld Graham Lovely, a financial adviser from PSG Wealth Claremont responds: You can indeed have a personal share portfolio (PSP) in certain retirement investments, such as an RA, equity-linked living annuity or preservation fund. A PSP is a long-term insurance licensed portfolio made up…

9 min
‘act big’ is south africa’s silver bullet

United States President Biden has hit the ground running and his plans unequivocally underscore the World Bank’s recent views that global economic output is likely to expand by four percent in 2021. Although world growth will have a positive rub-off on South Africa, it is not the silver bullet the country has been waiting for. Within a few days of President Biden’s inauguration he made significant sweeping changes, as promised during his election campaign. Human dignity and equality have been restored with immediate effect. Biden also rescinded Trump’s withdrawal from agreements such as the Paris Accord on Climate Change and made a recommitment to the World Health Organisation (WHO). A massive effort is underway to vaccinate American people to create herd immunity against Covid-19 as soon as possible and stimulus cheques…

5 min
inflation coming to an economy near you?

We haven’t had a sustained period of price rises for years. Could the coronavirus be the catalyst that finally lets inflation loose? Now may be a useful time for investors to think through the portfolio implications of a more inflationary environment. What causes inflation? The massive stimulus implemented by central banks to help economies recover from Covid-19 has sparked speculation in some quarters that inflation may follow. Traditional economic theory certainly suggests that a major expansion of central banks’ balance sheets should drive up prices. However, the relationship between money supply and inflation only holds over multi-decade periods. In the shorter term, inflation is tough to predict. That was amply demonstrated following the 2008/9 Global Financial Crisis (GFC), when widespread forecasts that prices would start increasing – in response to super-accommodative monetary policies…