One of the biggest changes announced in this year’s budget was that pension funds and retirement annuities can now invest as much as 45% offshore. This was a big jump from the previous limit of 30%. There had also been an extra 10% allowed for the rest of Africa, but this was hardly used.

So what does this mean for investors? Given that South Africa is such a small economy and the JSE is a relatively small market, does it make sense to push your offshore investments to the limit?

In this article we explore why this is not just a black-and-white decision, and the considerations that investors should take into account.

Choosing the right insurance for your home and possessions is really important. How would you replace everything in your house if it was destroyed or stolen? 

Home owner's vs home contents insurance

It’s easy to get confused between home contents insurance and home owner’s insurance. Home owner’s insurance, is sometimes called buildings insurance and covers the structure of your house and other immovable items such as your carpets and geyser.

Source:  Santam

If you’re an entrepreneur, you’re likely to be an optimistic risk taker and may believe that the proceeds from the sale of your business will suffice as retirement capital.

The harsh reality is that not all businesses have a happy ending.

Although drive, motivation and a propensity for risk are great for growing a business, they don’t always translate into sound retirement planning.  

Diversifying your assets is a great way of insuring against the possible decline of your business, or the inability to sell it when you need to.

Generations of financial planners have advised their clients to use the 4% rule when planning retirement withdrawals. But is it still relevant today?

This article explains that, while the 4% rule can be a good way to think about how much you will need to save for retirement, it can never replace a proper financial plan.

Like most rules of thumb it’s not completely worthless – but it’s also not the answer to a happy and prosperous retirement. Planning your retirement is probably the biggest financial decision you’ll ever have to make so please do consult a qualified financial planner.