Share

RIDING THE STORMY MARKETS

accreditation

WE ARE in tough times but what does that mean for your money?

Malusi Ndlovu, head of Old Mutual Corporate Consultants, told SunMoney that people’s reactions to such events are also part of the events themselves.

“Unstable politics creates unstable markets but unstable markets take longer to calm down. But if you have investments, don’t panic!”

- Keep focused on your goals. Your fund should be increasing above the inflation rate. If you change jobs and spend your retirement savings, will you be able to make up the different before you retire?

- Use tax breaks by contributing more to retirement funds and tax-free savings.

Contributions to retirement vehicles are tax deductible, subject to certain limits. You’ll pay zero tax on income, dividends and capital gains until you claim from your retirement fund.

- Retirement fund members typically contribute a set amount from their monthly salaries.

These monthly contributions are put in solid investments shaken by market jitters so that when the markets stabilise, the value of the investments rises.

- You might expect higher returns than you’re actually getting but switching funds may have other costs attached. Sometimes the market is not as hot as you want it to be and your investments grow slower. This is just the market and has nothing to do with the skill of the asset manager.

- Whether the market is good or bad, always focus on reducing debt and add to savings whenever possible. Save for an emergency in case you get a bad surprise.

- When times are tough scams become more common as crooks who suffer like everyone else become more desperate for money.

- If you can, try to delay your retirement because your returns might be lower at the time and you’ll be thankful for the extra savings once the market eventually rises again.

Get the best in Soccer, News and Lifestyle content with SNL24 PLUS
For 14 free days, you can have access to the best from Soccer Laduma, KickOff, Daily Sun, TrueLove and Drum. Thereafter you will be billed R29 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.
Subscribe to SNL24 PLUS
heading
description
username
Show Comments ()
Voting Booth
What do you value most personally?
Please select an option Oops! Something went wrong, please try again later.
Results
Earning tons of money
33% - 1 votes
Career Progression
33% - 1 votes
Work-Life balance
33% - 1 votes
Vote
Let us know what you think

Contact the People’s Paper with feedback on stories and how we could make dailysun.co.za even better!

Learn more
Do you have a story for the People’s Paper?

Click below to contact our news desk and share your story with SunLand!

Let's do it!