Market news update

Market News update

March 5th 2019

JSE top 40

-0.5%

source: Financial Times

All Share index

6.7%

source: Financial Times

USD/ZAR

source: Google

EUR/ZAR

source: Google

GBP/ZAR

source: Google

Prime Lending Rate


10.25%

Inflation rate


6.25%

South Africa

Time is of the essence if you want to make the most of tax breaks available to retirement fund investors each year to boost your retirement savings. If you haven't made the most of the tax deductions for retirement savings and you want to top up your savings before the tax year ends, you need to contribute an additional amount to your existing fund or start a new one within the next week, as it takes about a week for the application to be processed, says Lisa Griffiths, associate director at BDO Wealth Advisers. Saleem Sonday, Head of Group Savings at Allan Gray, says that by contributing to a retirement fund (pension fund, provident fund or retirement annuity) or a tax-free investment you can access attractive tax-saving benefits. Both offer you tax-free growth on your savings, which can save you lots in tax, but contributions to a retirement fund have the additional benefit of being tax deductible. If you contribute to a retirement fund before the end of the tax year, you could get back some of the tax you have paid to the South African Revenue Service (Sars) when you file your tax return, and you can use this saving to boost your contributions. For contributions to a retirement fund you enjoy a tax deduction up to an annual amount of 27.5% of the greater of your taxable income or remuneration. The benefit is capped at a contribution of R350,000 annually. However, if you invest more than this, you can still get the tax benefit in the future, says Sonday. Contributions for which you do not enjoy a deduction during your working years can be deducted at retirement, and growth on them is tax free, but you may pay tax on the pension you draw. There are different types of retirement funds. You can either be invested in a pension or provident fund through your employer as a condition of employment, or you can invest in a retirement annuity (RA) in your personal capacity (sometimes these are set up by your employer on a group basis).

U.K

(News24) - Anil Agarwal, the founder of resources company Vedanta and also the biggest shareholder in Anglo American, says investing in South Africa and the continent “makes the most business sense.”   Agarwal was speaking at the official opening of Vedanta’s Gamsberg zinc mine in South Africa’s Northern Cape province Thursday. The company has invested $400 million in the operation and plans to spend a further $1 billion as it contemplates higher output and a refinery-smelter complex.

Stanlib Asset Class Returns

Responsive image

Disclaimer
Wealthplanning.co.za and its owner have taken and will continue to take care that all information, in so far as this is under its control, provided on this document is true and correct. However, this document and its owner shall not be responsible for, and therefore disclaims any liability for, any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered as a result of or which may be attributable, directly or indirectly, to the use of or reliance upon any information, links or service provided through this document. No information cinatined in this document should be seen as advice.

Copy-of-Welcome-to-M.A.G (1).png
Market-Comm-heading-Email.png
Goal-Based-Returns-Email-Heading.png