Liberty Corporate Customer Update | June 2011
Celebrating Mothers Day is a fantastic way to remind ourselves about the importance of family. In fact, as South Africa's savings rate continues to dwindle, it was the perfect reminder that the best gift you can give your child is an education. The number one priority for most parents is to pay for their child's education. Starting an education savings plan as soon as possible is the best way to ensure you have the money you need. Something else far too few South Africans take the time to plan ahead for is ensuring that they are covered for the risks that always seem to be so far away, like death or disability. Remember that life cover and loss of earnings protection can save you and your family a lot of trouble when you need it most. If costs are something you keep a close watch on, then you might have noticed that the Council for Medical Schemes has increased the levy that schemes must pay to fund its activities by 24.8 percent, despite objections from medical scheme representatives. Schemes will be expected to pay the first instalment of the levy, which is ultimately funded by member contributions, this month. Talking about member contributions, if you are a member of a provident fund and want advice on how to preserve, or grow it when you get paid out, take a look at this article, which will lead you through the process. Looking at the broader economy, the South African Reserve Bank's Monetary Policy Committee warned that inflation is expected to rise above the country's 3% to 6% inflation target early next year. Its decision to keep interest rates on hold for a while longer was, however, met with approval. STANLIB economist, Kevin Lings, expects to see interest rates start to rise in the last quarter of 2011. The growth in retail sales during March, announced this month, was below expectations and manufacturing activity for the first quarter points to a slow economic recovery. On the markets, there appears to be general agreement that high quality offshore equity markets currently offer better value prospects than local shares. Beware, however, of exorbitant fees. Internationally, high government debt in the Euro zone continues to dent investor confidence and this has filtered through to emerging markets such as South Africa, which tend to follow the uncertain global investment mood. At the same time, ongoing unrest in Libya and other countries has kept the oil price high - something which could potentially have a significant negative impact on global growth if it is sustained over time. Remember not to make any rash decisions and to speak to your financial adviser if you're worried about the markets' influence on your investments. Until next time Liberty Corporate: Communications
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