WHAT'S UP WITH THE RAND?

Sometimes the rand is strong and sometimes it’s weak. Recently our currency hit a 4-year low, tipping the R10/$ mark and sending many economists, investors and traders reeling because currency strength is a key indicator of a country’s economic health.

If you’ve ever wondered exactly what goes into determining the strength of a currency, I hope this article will shed some light for you!

REVIEWING YOUR POLICY (2)

A WISE CHOICE NOW PAYS OFF LATER

In my previous article I looked at the old-school approach to risk assurance policies and highlighted some areas of concern that the latest policies are trying to avoid.

The reason for this is because most life cover premiums are higher than necessary because you are sold an indiscriminate lump sum of assurance to cover many different needs with different values at different times of your life. Not only is this costing you too much, it is also probably inappropriate for your needs.

BrightRock, a comparatively new kid on the risk life assurance block, has made this claim.

It says that, as a result of the traditional “lump-sum” structure, your cover becomes increasingly unaffordable, resulting in your reducing or cancelling it in later years. Having paid from day one for the cover, you then sacrifice it at the very time you need it most.

The BrightRock claim follows the publication last year of research undertaken by True South Actuaries & Consultants, on behalf of BrightRock, which showed that many people who bought seemingly “cheap” life assurance when they were younger faced losing their cover as their premiums escalated above the inflation rate and became increasing unaffordable. So, if you missed last week’s article, just click on the older posts link below, otherwise, read on for some more information on the kind of features you should be looking out for in your policies.

WHAT TO LOOK FOR

The overview principle is that a wisely chosen policy is one that can adapt with your needs.

Each component of cover within your risk assurance policy should exactly match the behaviour and trajectory of each specific financial need you want to protect, Schalk Malan, executive director at BrightRock, says.

ANOTHER RATE CUT THIS WEEK?

WILL THERE BE A CUT IN THE INTEREST RATE OR NOT?

9th Governer of the South African Reserve Bank, Gill Marcus, heads up the Monetary Policy Committee.

Just the sound of having the interest rate dropped should be music to our ears – but, on a larger scale, is it really?

The Monetary Policy Committee (MPC) is scheduled to announce its interest rate decision this week and might feel some pressure to follow in the footsteps of other central banks that have decided to loosen monetary policy.

However, economists are sceptical about whether there is a real possibility of another rate cut and if a breather in this regard will have the desired effect. Elna Moolman, economist at Macquarie Group, says one of the most important events since the last MPC meeting was the massive quantitative easing announced by Japan, but also decisions by a number of other Central Banks to cut rates.