Albert Einstein called the magic of compound interest, “the eighth wonder of the world”. He famously stated that “he who understands it, earns it, and he who doesn’t, pays it.”
In other words, compound interest is great when you’re investing and terrible when you’re borrowing.
This article looks at six common barriers to the creation of wealth. Fortunately, all six pitfalls are easy to avoid – it just takes discipline.
We all have a tendency to overestimate our abilities. A lot of the time, this is a good thing. Without any self-confidence, we would struggle to ever find a partner, apply for a job, or try a new hobby.
But there are also times when overconfidence has hazardous results – when we think we know things that we don’t actually know, or believe we know something others don’t.
In this article we look at why this is particularly perilous when it comes to our money and give a very pertinent real-world example.
Kevin Lings, Chief Economist at Stanlib, unpacks the 2023 budget in this 15 minute video.
An Economic and Market overview of January 2023 from Analytics Consulting.
The South African economy represents less than 1% of global economic activity and returns on local equity have been average over the last few years.
Investing offshore – over and above the contributions to your local retirement fund – is crucial. A healthy portfolio should be split across regions and currencies to hedge against the depreciating rand, and to gain from higher economic growth in other jurisdictions. But with Regulation 28 blocking the way, what other options do you have?
This month we explain how endowments work.
What do you think of when you hear the word ‘fire’? Smoke and helicopters, the sound of a gun? The feeling in the back of your throat when you take a sip of whisky? Maybe even being fired in a recessionary economy? All pretty negative stuff, apart from the whisky…
But we’re not talking about actual flames. FIRE is an acronym for Financial Independence, Retire Early. It’s about maximising your saving power through reduced spending, greater earnings and wise investment. Read on to find out how it works.
An Economic and Market overview of December 2022 from Analytics Consulting.
I think I’m probably right in saying that 2022 was a hectic year for all of us. But for me it also involved the birth of my third child and, a week before my 41st birthday, a small stroke.
An Economic and Market overview of November 2022 from Analytics Consulting.
Perhaps the most common way to measure investment risk is to use volatility. When markets are talked about as being volatile, it’s usually shorthand for saying that risk is high, or that investors are unusually nervous.
But what exactly is volatility, what does it measure, and why is it seen as the same thing as risk? Is it always the most useful way to think about how risky an investment is?
In this article, we look to answer these questions. And to provide some insight into why, despite being a useful tool, volatility shouldn’t be the only way anyone ever thinks about risk.
Whether you’re looking for Christmas presents or just something for yourself over the festive season break, a good book is always worthwhile.
There are many good books about personal finance that have been written over the years. Some have become incredibly popular and made their authors remarkably – although not always healthily – famous.
In this article we look at three books that aren’t as well known … But that still contain some very useful insights for anybody who has an interest in improving their financial wellbeing and the financial wellbeing of their families.
An Economic and Market overview from Analytics Consulting.
Anyone keeping an eye on the stock market will know that 2022 has been very different to 2021.
Over the past 18 months, the cost of living has surged globally, with world inflation rising sharply from an average of less than 2% in 2020 to over 9% currently. This increase in inflation is evident within both developed as well as emerging markets, and in some countries, inflation is the highest it has been in four decades.
An Economic and Market overview from Analytics Consulting.
We spend our working lives making sure that we save enough for our retirement. But if we’re unlucky enough to retire just before a market crash, this can throw our planning into disarray.
That is because a big drop in our retirement capital in the first few years of retirement will have a lasting impact. In investment terms, this is called “sequence of return risk” – the risk that bad returns at the wrong time can be especially painful.
The biggest obstacle to growing your wealth has nothing to do with the stock market – it has to do with you. More specifically, the choices you make about your lifestyle and your saving habits.
Achieving financial freedom is a personal journey that involves lots of little behavioural changes over time.
These small changes can make all the difference in the long run.
An Economic and Market overview from Analytics Consulting.
Albert Einstein called the magic of compound interest, “the eighth wonder of the world”. He famously stated that “he who understands it, earns it, and he who doesn’t, pays it.”
In other words, compound interest is great when you’re investing and terrible when you’re borrowing.
This article looks at six common barriers to the creation of wealth. Fortunately, all six pitfalls are easy to avoid – it just takes discipline.
We all have a tendency to overestimate our abilities. A lot of the time, this is a good thing. Without any self-confidence, we would struggle to ever find a partner, apply for a job, or try a new hobby.
But there are also times when overconfidence has hazardous results – when we think we know things that we don’t actually know, or believe we know something others don’t.
In this article we look at why this is particularly perilous when it comes to our money and give a very pertinent real-world example.
Kevin Lings, Chief Economist at Stanlib, unpacks the 2023 budget in this 15 minute video.
An Economic and Market overview of January 2023 from Analytics Consulting.
The South African economy represents less than 1% of global economic activity and returns on local equity have been average over the last few years.
Investing offshore – over and above the contributions to your local retirement fund – is crucial. A healthy portfolio should be split across regions and currencies to hedge against the depreciating rand, and to gain from higher economic growth in other jurisdictions. But with Regulation 28 blocking the way, what other options do you have?
This month we explain how endowments work.
What do you think of when you hear the word ‘fire’? Smoke and helicopters, the sound of a gun? The feeling in the back of your throat when you take a sip of whisky? Maybe even being fired in a recessionary economy? All pretty negative stuff, apart from the whisky…
But we’re not talking about actual flames. FIRE is an acronym for Financial Independence, Retire Early. It’s about maximising your saving power through reduced spending, greater earnings and wise investment. Read on to find out how it works.
An Economic and Market overview of December 2022 from Analytics Consulting.
I think I’m probably right in saying that 2022 was a hectic year for all of us. But for me it also involved the birth of my third child and, a week before my 41st birthday, a small stroke.
An Economic and Market overview of November 2022 from Analytics Consulting.
Perhaps the most common way to measure investment risk is to use volatility. When markets are talked about as being volatile, it’s usually shorthand for saying that risk is high, or that investors are unusually nervous.
But what exactly is volatility, what does it measure, and why is it seen as the same thing as risk? Is it always the most useful way to think about how risky an investment is?
In this article, we look to answer these questions. And to provide some insight into why, despite being a useful tool, volatility shouldn’t be the only way anyone ever thinks about risk.
Whether you’re looking for Christmas presents or just something for yourself over the festive season break, a good book is always worthwhile.
There are many good books about personal finance that have been written over the years. Some have become incredibly popular and made their authors remarkably – although not always healthily – famous.
In this article we look at three books that aren’t as well known … But that still contain some very useful insights for anybody who has an interest in improving their financial wellbeing and the financial wellbeing of their families.
An Economic and Market overview from Analytics Consulting.
Anyone keeping an eye on the stock market will know that 2022 has been very different to 2021.
Over the past 18 months, the cost of living has surged globally, with world inflation rising sharply from an average of less than 2% in 2020 to over 9% currently. This increase in inflation is evident within both developed as well as emerging markets, and in some countries, inflation is the highest it has been in four decades.
An Economic and Market overview from Analytics Consulting.
We spend our working lives making sure that we save enough for our retirement. But if we’re unlucky enough to retire just before a market crash, this can throw our planning into disarray.
That is because a big drop in our retirement capital in the first few years of retirement will have a lasting impact. In investment terms, this is called “sequence of return risk” – the risk that bad returns at the wrong time can be especially painful.
The biggest obstacle to growing your wealth has nothing to do with the stock market – it has to do with you. More specifically, the choices you make about your lifestyle and your saving habits.
Achieving financial freedom is a personal journey that involves lots of little behavioural changes over time.
These small changes can make all the difference in the long run.
An Economic and Market overview from Analytics Consulting.
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