MyMoney Online, Personal Finance with Warren Ingram

How to invest for retirement in a brave new, post-Zuma South Africa

The Money Show’s Bruce Whitfield asked Galileo Capital Personal Financial Advisor Warren Ingram to share some advice he may have on retirement investing now that the political situation in South Africa has changed quite dramatically.

Ingram gave the following tips:

  • If you own a living annuity, consider reducing your income you draw when the market strengthens to limit the impact of your income on capital growth.

  • Focus on government bonds, offering good growth above inflation and, if interest rates drop, you get some capital growth too.

  • The listed property sector - a great income generator - has been decimated in recent months; there are some good value businesses offering a high income. Consider a unit trust that is not heavily invested in offshore property.

  • The one-way bet on investing all your money offshore is not sensible or rational anymore. The rand has strengthened by more than 20% since Nene-gate. Income from offshore would have been severely impacted if you had invested 100% of your living annuity offshore.

  • Now that balanced unit trusts may invest up to 30% offshore, there is more scope to invest globally without needing a tax clearance – good for income investors.

  • Ensure a good balance between domestic and offshore funds. If interest rates drop; it’ll be good for bonds, local property and local shares.

For more detail; listen to the interview in the audio below (and/or scroll down for quotes from it).

There is hope around the economy and investment markets.

Warren Ingram, Galileo Capital

You need to be careful about a false sense of optimism.

Warren Ingram, Galileo Capital

I don’t have a cooking clue what it [the market] will do in the next two or three years.

Warren Ingram, Galileo Capital

We’re likely to see interest rate cuts this year.

Warren Ingram, Galileo Capital

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