Header

Newsletter: Foster Wealth News | January 2018 

To read our latest Newsletter, please click here.

To download Adobe Acrobat Reader to view the file, please click here.

There are many reasons to feel optimistic about 2018. With Ramaphosa in and Zuma out, the Rand being strong, inflation under control, it certainly looks like the runway is clearing.

Ramaphosa has been decisive on important topics such as nuclear power, which should give the rating agencies confidence. Unfortunately, we, as a country, still have a great deal of work to do. Our budget deficit is R50billion, yes, that’s a “b”, and we don’t have many very effective solutions available to solve this.

Income tax is at a critically high level. The number of people paying the vast majority of income tax is low and if we raise income tax any more we may well see these taxpayers leaving the country. A very unpopular (politically) yet very effective move would be to raise VAT. It would go a very long way to closing the deficit gap. We will have to wait and see which route is chosen, but one gets the feeling the new leadership will do the right thing.

We have a positive outlook for investments: equities should move up, bonds should strengthen too, our investment team has added the Allan Gray Bond Fund to our Balanced Income Model, which we consider a very positive move.

Looking forward to connecting with you more in 2018.

Remember to follow us on social media on Facebook.

Thomas Foster.

---

Our blogs

Impact Investing: Making a Difference while Making Money

“It is rarely the application of government programs that create true, lasting change in the world. It is the entrepreneurs working out of garages in Silicon Valley and shacks with dirt floors in India that end up changing the world for the better.” ~ James Sorenson

For decades investors were happy to make money. How and where money was being put to work was rarely investigated. As long as shares were doing well and worthwhile dividends paid, one could settle back comfortably, perhaps with a glass of champagne, and bask in a sense of achievement. It was good – and it was good enough.

Read more...

Finance: Events that Trigger the Review of your Financial Plan

The key to a financial plan is actually having one. Too many people think that it is something you put off until you have enough money or will only have to think about when planning for retirement. A financial plan, however, is important from the get-go. A financial plan should be with you like a good friend from the day you start working and throughout your life until well into retirement.

Each year, across all savings, investments and accounts, you should revisit your priorities and your strategy for reaching them. Monitor your goals and check if they are still aligned with your current situation. If your conditions have changed, make adjustments as necessary to ensure that you still meet timeframes and risk tolerance in order to bring your portfolio profile in line with relevant market performance.

Read more...

---

"Ask yourself if what you are doing today
is getting you closer to where you want to be tomorrow.
"
- Anon.

---
---