Weekend Argus (Saturday Edition)
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Based on these assumptions, investing into your home loan in comparison to a moderate-risk unit trust may be most efficient.
There may be early termination fees to consider on your bond, so it is best to weigh up everything, crucially assessing how any decision impacts your overall financial plan. I’d suggest you consult a qualified financial adviser to assess your unique circumstances. inflation over a five-year (rolling 60-month) period.
In the long term, share performance still outperforms inflation by a wide margin, but the point is you need to be prepared for volatility and periods of underperformance from the outset.
You don’t elaborate on your investments, but I can offer the follow general insights that can better help you tolerate future periods like this.
If you are firmly focused on absolute returns and require an income from your portfolio at the same time, it may be advisable to consider investing your first year’s income requirements in the money market as an asset class. I would invest the following four years’ inflation-adjusted life capital in bonds, while allocating the remaining capital towards growth assets, such as shares (among others), to achieve longterm growth. Given the current turbulent market conditions, however, I would advise consulting an expert to assist you with your asset allocation and the more accurate distribution weights of your capital towards each class. increase dramatically compared to the numbers provided, a premium increase may be considered. At the same token, premiums will be lowered when claims and operational costs decrease. For example, installing enhanced security equipment and adjusting procedures to remove unnecessary risk elements can help attract a lower premium.
Chatting to an adviser can also help, for a tailored solution that meets your insurable needs, in line with what you can afford.
Magdeleen Cornelissen, a financial adviser at PSG Wealth in Menlyn in Pretoria, responds: