With economic growth slowing, interest rates rising and an ongoing drought, you will likely feel the knock-on effect on your pocket as you pay more each time you fill your trolley with the exact same goods.
Don’t let this be an excuse to put investing on the back seat. Despite some wallet constraints and the popular excuse, “I can’t afford to invest”, you still need to make room for investing because certain milestones like retirement or the day your child goes to varsity will not move out.
Time plays a huge factor in how your money will grow, so the more you delay setting aside funds towards your goals, the more you will have to put away monthly to reach them, and the less you will benefit from compounded returns.
Pieter Du Toit, CEO of FNB Investments says, for investors, it may seem like there is no light at the end of the tunnel in times of market uncertainty but this couldn’t be further from the truth. He says the savvy investor sees opportunities in the murky water - they don’t panic as they understand a fall in market prices is normal.
“The stock market routinely goes through volatile periods - it bottoms-out and over the long term rises to levels higher than periods before. Over the long-term no other asset class has ever performed better than shares and those who ride out the falling markets are always rewarded for being patient and staying cool under pressure. It is now in these falling market conditions that an investor, with a long term picture, can make a savvy decision and take advantage,” says Du Toit.
Du Toit says Tax-Free share investing is an even smarter option for longer term investments because you will not pay tax on your dividends earned and you will further benefit by paying no capital gains tax enabling you to grow your investment even faster.
“You will also maintain the buying power of your money and benefit from capital growth, enabling you to reach your goals even sooner. You can start a tax free shares account easily online with a contribution of just R300 per month and you can invest in the top 100 companies listed on the Johannesburg Stock Exchange. Whether you are a first time investor or an old pro, the time is now to dive head first into the world of investments.“
- Cape Town brewery raises R3m through crowd-funding and plans to go global
- Rand flat ahead of economic growth numbers
- R1.2bn funding for FNB to improve lending to SMEs
- SA tech companies that would have more than doubled your money over the last 5 years
- South Africa is running out of other people’s money