August 22, 2017

Investors who get ‘spooked’ by the possibility of a looming war between North Korea and the United States of America should not be tempted to make rash portfolio changes due to this news. It is likely to do more harm to their long-term performance than if investors opt to ride out the pending storm. Clive Eggers, Head – Investment Analytics, GTC says that it is more important to spend time and attention on portfolio construction to ensure it can withstand known and unknown shocks. “It is understandable that investors become concerned when they see news suggesting the world may be facing another war, but a panic reaction can be extremely detrimental to long-term savings.” Market volatility has increased sharply following a ‘war of words’ between the US and North Korea over the past week, raising fears of a nuclear war.... Read More

Knowing whether your death benefits are approved or unapproved in terms of the Pension Funds Act may save your loved ones from any unexpected tax surprises at an already difficult time. “The nature of death benefits rarely gets enough attention from ‘the living’ but the tax implications of this benefit can become a substantial burden on the beneficiaries you intend providing for,” says Celeste Kruger, Consultant – Employee Benefits Consulting, GTC. Death benefits from retirement funds are subject to the requirements of Section 37C of the Pension Funds Act, and they are taxed in terms of the Second Schedule of the Income Tax Act (see scales at the end of the article). “Most employers provide for a death benefit – usually a lump sum amount – to employees in addition to a retirement benefit. But the way in which this... Read More