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Market Volatility In Perspective

Market Volatility In Perspective

Firstly, what is a “bull” and what is a “bear”?

As a nice simple analogy, bulls toss things into the air with their horns, while bears drag their prey down. So, one can deduce that a bull market is one that is expected to go UP and a bear market is expected to go DOWN.

Although no one can reliably predict the timing of bear markets or bull markets, a prudent investor should understand that equity prices can decline and be prepared to “ride out” these periods when they occur. The big danger from bear markets is that an investor will sell at or near the bottom of the downturn. Unfortunately, much of the material presented in the press is often there to try and “talk” a market up (create a bull market) when, in fact, a bear marketĀ is looming on the horizon.

Demystifying Retirement Funding

Let’s try to break this all down into phases of your life, and look at the various terms which will apply to those phases.

PRIOR TO RETIREMENT

PENSION FUND ARRANGEMENTS FOR EMPLOYEES BY THE EMPLOYER

INTRODUCTION

The provision of substantial income after retirement is a widespread feature of employment in South Africa today.

Despite the skeleton State Pension Benefits available, the responsibility for providing pensions for all employees rests firmly on the shoulders of the employer. Whatever method is adopted for discharging this obligation, employees will naturally hold the employer primarily responsible for the overall quality of the benefits they receive. However, each fund is tailored to the requirements of the employer/employee relationship.

BENEFIT DESIGN

Benefit design is the way in which various Employee Benefits such as pension, provident, death and disability benefits are brought together to provide the individual employee with a comprehensive benefit which fulfils his real needs.