August 2009
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Economic update Although there are signs of recovery, the US economy remains fragile. Unemployment increased and the fiscal/budget deficit is forecast to hit 14% of GDP this year. Although US retail sales showed a nominal improvement in June they remain extremely depressed overall. The good news is that the US housing market may be reaching its turning point but recovery is set to be fairly weak. Read how the global and local economies are faring and whether the first green shoots are a sign of a real recovery. We have also included a jargon busting economic glossary for commonly-used terms in these reviews. Empower yourself - asking the right questions We want you as our customer to be asking tough questions so that you have a financial plan that meets your expectations. In this edition we focus on empowerment and the articles Empowering Yourself With a Solid Financial Plan and 10 tough questions to ask your financial adviser will help you ask the right questions before investing. In life, the only constant is change and this holds true for laws about retirement and estate planning. It is important that your financial plan is up to date with these changes. In Death and Taxes, we look at how tax changes to retirement funds affect your estate planning. If you have risk cover, it is important to know that you will be paid out when life deals you an unexpected blow. Liberty Life was the first life company to publish claims statistics which show that we will be there when you need us most. Liberty Claims payout exceeds R2bn explains how we have you covered. Feedback from last month's newsletter We had a bumper response to last month's newsletter! People debated the wisdom of using savings to pay off your mortgage bond. While reducing debt is an important part of a successful financial plan, you run the risk of being undercapitalised at retirement if your bond is your only point of saving - you will have a home that you own but no way of drawing an income. If your plan is to free up cash by downscaling, you may be surprised at the cost of a smaller home in a secure retirement complex. Please keep talking to us and telling us what you think. You can email your comments to [email protected] Kind regards Steven Braudo Chief Executive Officer: Liberty Insurance |
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Global economic review STANLIB economists Kevin Lings and Melissa Dyer report on how the US economy is responding to the fiscal stimulus and what the Economic Crisis Monitor is reflecting. Weekly economic updates The Weekly Focus is a commentary on markets, economic and investments prepared by Kevin Lings and Melissa Dyer of STANLIB. You can read the latest developments every Tuesday by following the link on http://www.stanlib.com |
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Local economic review In the article, A Focus on National Savings, Liberty Life consumer economist Tendani Mantshimuli highlights the importance of savings to boost the economy. |
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Empower yourself to build your financial future |
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