Tuesday, 08 September 2015 - 20:00
Charts
Seed Weekly - Thrift
In a recent meeting with a professional client, who earns a very good monthly income and who, already at the age of 47, has no debt and is building up a fairly substantial asset portfolio, I was asked a question which got me thinking about a topic which is not often spoken about and which is definitely not “in vogue” within the realms of financial planning literature. The reason for this thought was a question asked. The question was, “What is a good monthly income for a professional person around my age, because I don’t understand how so many of my colleagues and friends can afford all of their fancy holidays, expensive houses and lavish lifestyles?”
The answer to this question is really quite simple: most of his friends / colleagues can’t afford their lavish lifestyles which they presently “enjoy”.
The fact of the matter is that in this modern age of consumerism and instant gratification, most people have forgotten or don’t implement Thrift in their finances. Now many of the younger readers will be unsure of what Thrift actually means.
THRIFT, as defined by the Oxford Advanced Learners Dictionary is: the quality of using money and other resources carefully and not wastefully.
Thrift is not a great concept for the marketing machines of our retail giants, it is also a very difficult concept to implement when your family is questioning why you can’t afford the overseas trip or new car that your neighbours are going on or bought, which they probably couldn’t really afford either. We are constantly bombarded with messages selling products that we don’t really need, and that we definitely cannot afford, by paying for them with money that we don’t really have!!
Unfortunately, as a financial advisor I often have to deal with the consequences of a lack of Thrift. It is an unfortunate fact of life that many retirees have insufficient funds at retirement and face the prospect of a penniless/ uncomfortable retirement and the hope that their kids will remember how nice they were to them so that their kids can look after them.
Whilst it is true that you cannot “save yourself rich” and most wealthy individuals have grown their wealth through substantial capital injections rather than through wise allocations of their monthly budget, the unfortunate fact is that most people will not have large capital injections to secure their retirement so most mere mortals need to implement “Thrift” in their lives in order to secure a dignified and enjoyable retirement.
To come back to the starting point in this article. Whilst the client I mentioned is paid an hourly rate and has very little prospect of capital injections securing his retirement, because he has implemented ‘Thrift” in his financial planning, he will be in a financial position to retire very comfortably.
Kind regards,
Barry Hugo
Tel +27 21 914 4966
Fax +27 21 914 4912
Email info@seedinvestments.co.za
Seed is hiring: Click through to our LinkedIn profiles to see vacancies at Seed Investment Consultants and Seed Analytics
www.seedinvestments.co.za
Tue, 08 Sep 2015
Top News
South African stocks rose and the rand recovered on Tuesday, buoyed by better-than-expected data from China and as a September U.S. rate hike looked less likely. Full story
Local markets
The JSE All Share ended 1.49% higher on Tuesday, with gold miners and resource shares leading gains across the board. Full story |
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Stock markets worldwide rallied
on Tuesday on hopes of more stimulus measures in China and on
strong German trade data, while Brent crude oil prices also
rose. Full storyChina's imports tumbled in
August, raising concerns about the health of the world's
second-largest economy and its contribution to global growth. Full storyGerman Chancellor Angela Merkel said on Tuesday that Europe needed to implement a joint system for dealing with asylum seekers and agree to binding quotas on how to distribute refugees across the continent. Full story |
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Markets | Gold firmed on Tuesday as a
retreat in the dollar index helped the metal snap a four-day
losing streak, but remained close to. . . Full story | | Hong Kong stocks rebounded sharply on
Tuesday, as a late-afternoon rally in mainland shares prompted
bargain hunting in the city's battered stocks.. . . Full story | | Chinese stocks rose nearly 3
percent on Tuesday as a surge in late-afternoon buying helped
erase early losses, but trading in both equity. . . Full story | | Japanese stocks fell on Tuesday,
taking the benchmark Nikkei index into negative territory for
the year to date, after soft trade data. . . Full story |
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| Australian shares bounced off
two-week lows on Tuesday as rising United States index futures
firmed, while Woodside Petroleum $8 billion takeover
approach for Oil. . . Full story | | Gold eased back towards its
lowest since mid-August on Monday as stock markets firmed and
the dollar steadied, and after U.S. payrolls data. . . Full story | | European stocks rose on Monday,
lifted by mining and commodities giant Glencore after it pledged
to slash its debt by a third, and. . . Full story | | China's foreign exchange
reserves posted their biggest monthly fall on record in August,
reflecting Beijing's attempts to halt a slide in the yuan. . . Full story |
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SA Business | South Africa's President Jacob Zuma said on Tuesday that 463 companies were found to be non-compliant with a charter that includes. . . Full story | | Ratings agency Fitch said on Tuesday the risk of a downgrade to South Africa's sovereign rating was increasing.. . . Full story | | South Africa's rand firmed more than 1 percent against the dollar, recovering from record lows in the previous session as bets. . . Full story | | Consistently low commodity prices and the risk of job losses have forced the government to call an urgent meeting with labour. . . Full story |
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| South African furniture company Steinhoff International on Tuesday reported a 36 percent rise in headline earnings for the year, supported by cost-savings and growth in the discount retail market.. . . Full story | | South African mining firms Anglo American Platinum and Sibanye Gold will make a joint announcement on Wednesday, following last week's announcement that Sibanye would consider buying Amplats Rustenburg mining operations.. . . Full story | | The platinum market deficit shrank in the second quarter, data from the World Platinum Investment Council showed on Tuesday, as rising mine supply and autocatalyst and jewellery recycling outstripped a much. . . Full story |
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Company News | Shareholders of the Company are advised that the Glencore-Merafe Chrome Venture (the Venture) has successfully concluded wage negotiations with the majority unions at all of its operations. A three year agreement. . . Full story | | Shareholders are hereby advised that Grand Foods (Pty) Ltd. (ôGrand Foodsö or ôthe Purchaserö), a wholly-owned subsidiary of Granprade, has entered into a sale of shares agreement, dated 7 September 2015. . . Full story | | Shareholders are advised that the CompanyÆs subsidiary, Discovery Health (Pty) Ltd. has been awarded the administration and managed care services contract for the Bankmed Medical Scheme with effect from 1 January. . . Full story |
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Company Results | Revenue increased by 9.5% to R11.2 billion (R10.3 billion). Gross profit was up 11.2% to R4.9 billion (R4.4 billion). Operating profit. . . Full story | | Turnover for the year lowered to R185.3 billion (2014: R202.7 billion). Operating profit after remeasurement items increased to R44.5 billion (2014:. . . Full story | | Revenue for the year ended 30 June 2015 increased by 7.1% to R536.2 million (2014: R500.8 million). Gross profit increased by. . . Full story | | Revenue grew to 7.1% to R536.6 million (R501.2 million). Gross profit was 19.8% higher at R290.4 million (R242.3 million). Operating profit. . . Full story |
World Markets (Spot Prices)
Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 49573.49 | 726.44 | 1.49% | JSE Top 40 | 17:00 | 44107.18 | 718.17 | 1.66% | JSE Gold | 17:00 | 979.71 | 34.64 | 3.67% | JSE Financial | 17:00 | 42717.38 | 534.72 | 1.27% | JSE Industrial | 17:00 | 72010.40 | 999.50 | 1.41% | JSE Indust 25 | 17:00 | 64201.59 | 957.44 | 1.51% | JSE Resource | 17:00 | 35450.79 | 826.15 | 2.39% | DJ Futures | 19:50 | 16363.00 | 185.00 | 1.14% | DJ Ind | 19:58 | 16405.20 | 302.82 | 1.88% | SP 500 | 19:58 | 1955.56 | 34.34 | 1.79% | Nasdaq | 19:58 | 4774.89 | 90.97 | 1.94% | FTSE 100 | 17:05 | 6146.13 | 71.61 | 1.18% | DAX | 18:08 | 10271.36 | 162.75 | 1.61% | CAC40 | 18:08 | 4598.26 | 48.62 | 1.07% | Nikkei | 08:28 | 17427.08 | -433.39 | -2.43% | Shanghai | 09:28 | 3170.45 | 90.03 | 2.92% | Hang-Seng | 10:28 | 21259.04 | 675.52 | 3.28% | All Ords | 08:37 | 5133.50 | 82.50 | 1.63% | NZSE 50 | 07:48 | 5610.31 | 37.58 | 0.67% |
| | Name | Time | RP | Move | % Move | Gold $ | 19:59 | 1122.22 | 2.76 | 0.25% | Gold R | 19:59 | 15393.02 | -217.10 | -1.39% | Gold R/kg | 19:58 | 494803 | -7100 | -1.41% | Silver $ | 19:59 | 14.7830 | .2550 | 1.76% | Platinum $ | 19:59 | 1004.11 | 20.11 | 2.04% | Palladium $ | 19:59 | 588.70 | 11.70 | 2.03% | R186 | 17:00 | 8.56 | -.04 | -0.52% | R204 | 17:01 | 7.75 | -.09 | -1.09% | R207 | 17:01 | 8.00 | -.11 | -1.30% | Brent Crude | 19:58 | 49.40 | -.21 | -0.42% | USD / ZAR | 19:59 | 13.7121 | -0.2300 | -1.65% | GBP / ZAR | 19:55 | 21.0568 | -0.2327 | -1.09% | EUR/ ZAR | 19:55 | 15.3337 | -0.2522 | -1.62% | NZD/ ZAR | 19:59 | 8.6956 | -0.0497 | -0.57% | AUD / ZAR | 19:55 | 9.6380 | -0.0354 | -0.37% | USD / JPY | 19:59 | 119.9310 | 0.6560 | 0.55% | EUR / USD | 19:59 | 1.1175 | 0.0009 | 0.08% | GBP / USD | 19:59 | 1.5374 | 0.0102 | 0.67% |
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Click here for the Sharenet Spot Price page
The JSE Today
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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08/09/2015 | 247 | 104 | 52 | 403 | 288,469,890 | R18,638,523,720 | 239160 | 1606774 | 07/09/2015 | 120 | 217 | 54 | 391 | 250,341,208 | R17,840,650,998 | 241597 | 1480349 | 04/09/2015 | 115 | 258 | 66 | 439 | 244,654,728 | R18,612,843,782 | 272171 | 1600788 | 03/09/2015 | 250 | 119 | 71 | 440 | 260,217,530 | R17,495,355,099 | 267456 | 1522800 | 02/09/2015 | 229 | 138 | 51 | 418 | 257,516,031 | R19,117,974,654 | 275741 | 1583807 |
* Includes all listed instruments on the JSE
Index Summary Index Name | RP | Move | % Move | Top 40 | 44,107.18 | 718.17 | 1.66% | Industrial | 72,010.40 | 999.50 | 1.41% | Mid Cap | 66,513.15 | 503.05 | 0.76% | Small Cap | 56,999.34 | 79.26 | 0.14% | Resource 20 | 35,450.79 | 826.15 | 2.39% | Industrial 25 | 64,201.59 | 957.44 | 1.51% | Financial 15 | 15,940.38 | 233.38 | 1.49% | Financial & Ind. 30 | 68,639.68 | 1056.33 | 1.56% | All Share | 49,573.49 | 726.44 | 1.49% | Oil & Gas | 8,888.79 | .00 | 0.00% | Mining | 21,070.59 | 474.63 | 2.30% | Gold Mining | 979.71 | 34.64 | 3.67% | Platinum Mining | 21.97 | .07 | 0.32% | GENERAL MINING | 6,301.44 | 142.77 | 2.32% | Oil & Gas Producers | 47,793.38 | .00 | 0.00% | Basic Materials | 21,104.83 | 420.64 | 2.03% | Chemicals | 21,740.30 | 414.79 | 1.95% | Forestry & Paper | 50,181.25 | 414.83 | 0.83% | Industrial Metals | 5,498.72 | 172.53 | 3.24% | Industrials | 43,500.03 | 428.22 | 0.99% | General Industrials | 155.54 | 1.86 | 1.21% | Consumer Goods | 66,196.87 | 649.21 | 0.99% | Automobiles & Parts | 7,268.91 | 11.32 | 0.16% | Household Goods | 557.26 | 21 | 3.84% | Health Care | 9,352.05 | 72.20 | 0.78% | Beverages | 216.15 | 1.43 | 0.67% |
| | Index Name | RP | Move | % Move | Food Producers | 8,532.32 | 75.21 | 0.89% | Personal Goods | 1,013.64 | 7.69 | 0.76% | Consumer Services | 15,329.04 | 359.83 | 2.40% | General Retailers | 7,764.40 | 5.18 | 0.07% | Travel & Leisure | 5,924.29 | -14.70 | -0.25% | Media | 370.32 | 13.43 | 3.76% | Support Services | 3,183.07 | -19.81 | -0.62% | Telecommunications | 8,935.41 | 121.68 | 1.38% | Financials | 42,717.38 | 534.72 | 1.27% | Banks | 7,208.99 | 82.11 | 1.15% | Non-life Insurance | 56,659.30 | .00 | 0.00% | Life Insurance | 38,633.34 | 755.89 | 2.00% | General Financial | 4,504.67 | 46.34 | 1.04% | Technology | 67,207.68 | 502.94 | 0.75% | SHARIAH TOP40 | 3,284.45 | 63 | 1.96% | FTSE/JSE SHARIAH ALL | 3,500.18 | 61 | 1.76% | COAL MINING | 8,166.58 | 76 | 0.94% | FTSE JSE Fledgling | 6,576.35 | -7 | -0.11% | FTSE/JSE Alt X | 1,483.32 | 1 | 0.04% | SA LISTED PROPERTY | 629.66 | | 0.89% | CAPPED PROPERTY | 564.62 | | 0.90% | RESOURCE | 19,134.87 | 431 | 2.30% | DIVIDEND PLUS | 200.81 | 3 | 1.27% | FTSE/JSE RAFI 40 | 8,975.18 | 146 | 1.65% | Capped Top 40 | 23,544.06 | 377 | 1.63% | Capped All Share | 25,144.58 | 368 | 1.49% | JSE TABACO | 9,247.10 | 14 | 0.15% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | SOL | SASOL LIMITED | BUY | 07/09/2015 | MPC | MR PRICE GROUP LIMITED | SELL | 07/09/2015 | LON | LONMIN PLC | HOLD | 07/09/2015 | AGL | ANGLO AMERICAN PLC | HOLD | 04/09/2015 | AMS | ANGLO AMERICAN PLATINUM C... | BUY | 04/09/2015 |
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Results Expected** Expected | Company Name | Fin. Date | 09/09/2015 | ASCENDIS | June 2015 (Final) | 09/09/2015 | ASPEN | June 2015 (Final) | 09/09/2015 | ASPENPREF | June 2015 (Final) | 09/09/2015 | CAPEVINH | June 2015 (Final) | 09/09/2015 | COMPCLEAR | June 2015 (Final) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | A-V-I | 07/09/15 | 09/10/15 | 19/10/15 | ZAR 2.0000 | SASOL | 07/09/15 | 02/10/15 | 12/10/15 | ZAR 11.5000 | BEE-SASOL | 07/09/15 | 02/10/15 | 12/10/15 | ZAR 11.5000 | ARM | 04/09/15 | 25/09/15 | 05/10/15 | ZAR 3.5000 | SHOPCONV | 03/09/15 | 17/09/15 | 05/10/15 | ZAR 325.0000 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | ABSABANK-P | 29/07/15 | 04/09/15 | 14/09/15 | ZAR 32.8281 | NEDBANK | 04/08/15 | 04/09/15 | 14/09/15 | ZAR 5.3700 | B-AFRICA | 29/07/15 | 04/09/15 | 14/09/15 | ZAR 4.5000 | STANBANK | 14/08/15 | 04/09/15 | 14/09/15 | ZAR 3.0300 | SHOPRIT | 18/08/15 | 04/09/15 | 14/09/15 | ZAR 2.4300 |
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Upcoming AGMs** Code | Company Name | Date | Status | ANS | Ansys Ltd. | 09/09/2015 | Confirmed | DTC | Datatec Ltd. | 10/09/2015 | Confirmed |
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