Low Interest Rates offer a Chance in a Lifetime!

Interest rates are plunging, and will continue to do so for the foreseeable future. This is bad news for investors living off proceeds of interest-bearing investments, but it is good news for the stock market and those invested there.
Lower interest rates reduce the attraction of interest-bearing investments, which encourages investors to switch into equities. Lower rates also mean lower financing costs to companies, increasing their profitability and raising their equity valuations. Lower rates furthermore mean more disposable income for indebted consumers, encouraging greater spending and higher rates of economic growth, which translate into better corporate profitability and higher valuation on the stock market.
Low interest rates and high dividend-yielding shares on the JSE currently offer investors a chance in a lifetime to switch from cash into the stock market at similar after-tax yields. At the marginal tax rate for individuals of 40%, a 5% tax-free dividend yield is, of course equivalent to an interest bearing investment of 8,3%. Cash furthermore does not offer the prospect of growth in either income or capital like an equity portfolio.
Stockbrokers and portfolio managers Sanlam Private Investments now offer investors a managed portfolio of high-yielding shares as an attractive alternative to interest bearing investments. Sanlam also offers you the opportunity to invest your retirement funds through it's Direct Equity Option. This option is ideal for investors who want equity exposure via a customised portfolio of shares and other securities.
For more information contact Anton von Below at 044 874 2616.