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HOW TO CHOOSE AN INVESTMENT NEWSLETTER

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Investing can be a tough field to get into, and one of the most difficult parts is figuring out how to invest. There are so many options available that it can be hard to know where to start and what is best for you. One of the most popular ways to get around this is by picking up an investment newsletter and getting the information from a pro. There are many different types of newsletters, so you’ll want to do your homework before diving in with one. That’s why today, I’m going to give you some tips on how to choose the right newsletter for you and how to make sure you’re not walking into a scam!

How often will I receive emails? What type of content can I expect? Is this for me? I will answer all these questions as we go through this post! Keep reading if you’re looking for more info about finding a great way to invest.

 

What Is An Investment Newsletter And Who Is It For?

You might have seen ads for investment newsletters in the sidebars on many websites while surfing the web. These are publications that provide information about investing and financial advice, often sent out to subscribers by email. They come from renowned experts like Paul Farrell from MarketWatch, David and Tom Gardner from the Motley Fool, Chris MacIntosh from Capitalist Exploits and many others.

Although they’re mostly targeted to investors and traders, investment newsletters are a very good resource for anyone who wants to learn about the current economy and investing. These invaluable sources of information can be used either by people with little to no experience in investing but who want to learn the ropes or by skilled and weathered investors and traders with years of experience.

 

Why Should You Read An Investment Newsletter And How Often Should You Read It?

There are many pros to reading newsletters. The most obvious one is that you have a steady stream of information coming from experts in the field, so they can help keep you informed and give guidance when needed. In other words, investment newsletters will provide you with the latest financial information and help keep you on track to reach your investment goals.

The most direct way they accomplish this is by sending out recommendations about what stocks to buy or sell. You’ll also be able to educate yourself on how the economy works and understand why your investments might go up or down at any given time.

You can read investment newsletters as often or as little as you like, but weekly seems to be frequent enough for most people who subscribe.

 

What Makes One Newsletter Better Than Another?

Investment newsletters can vary in many ways, so there’s no one answer for what makes a newsletter better than another.

As far as how content is delivered and the types of recommendations they make, it really depends on your personal preference. For example, some people prefer to receive their information through email rather than something like an RSS feed or text messages.

There are also different levels of intensity when it comes to newsletters. Some offer more advice that is more hands-on, while others might only send out a monthly update or two each year with broader and more general information.

The important thing is that you find the one that’s right for you!

  1. How Do I Know Which One To Choose

As I just said, choosing the best investment newsletter comes down to your preferences and what you plan to do with the information you receive, so the first thing you want to do is think about what you want and what your goals are.

This is important because some newsletters will often have a specific focus. For example, some are for retirement planning; others focus on finding asymmetric low-risk/high-reward investment opportunities, while others specialize in estate taxes or investing as an expat. You’ll want to pick the newsletter that’s right for you based on your needs and situation—you may subscribe just to get updates about certain markets, like oil or gold, or you may want to have a more general overview of the economy.

Some people like unbiased yet opinionated newsletters about what stocks they recommend, while others prefer newsletters with specific investing strategies instead.

What’s most important, though, is for your newsletter to be in tune with your goals—you don’t want to read information from someone telling you to do something you don’t agree with, such as buy bitcoin, when your goals are set on long-term stability.

It’s also important that the newsletter is reputable and trustworthy—you want to be sure you’re not just getting spam from some guy in Nigeria who wants your bank account information, which brings me to a very important point that I’ll talk about in the next section.

  1. How Do You Know An Investment Newsletter Is Not A Scam?

There are many ways to tell if a newsletter is legit. Probably the first thing you should do is check the writer’s background, as well as their experience and qualifications in financial matters. It also helps to look at the track record of recommendations they have given in the past and their credentials and memberships, such as whether or not they are a Chartered Financial Analyst or CFA.

Another easy way is to read reviews about them online—you’ll find both positive and negative feedback on any newsletter that exists! So you can use this information when you’re trying to figure out if it’s worth subscribing to.

A final thing you can do is check the company’s contact information and make sure that they have a phone number and an address where you could reach them, should anything go wrong with your subscription or if there are any problems in general.

If you’re still not sure, don’t be afraid to ask someone else for their opinion! This can often help provide some reassurance that your investment newsletter of choice will actually work out in the long run.

 

The Bottom Line

If you’re looking for a way to improve your finances, an investment newsletter is worth subscribing to. In some cases, reading it can be done in as little as 15 minutes every week and will provide valuable financial advice tailored just for you.

Investment newsletters are typically written by professionals who study the markets closely to know what information would be most helpful to their readership. They also have a decent idea of where the market is going because they’ve been tracking it all along!

The key to choosing the right investment newsletter is knowing what you want. I have found that people who know where they’re going don’t need a lot of advice and make better use of the advice they’re given. It’s important to make sure the newsletter matches up with your goals. Once you’ve shortlisted those that do, following the points I listed earlier will give you a good idea of which one to choose!

 

News

FOMO, FOLO, AND THE VOLATILITY CONUNDRUM

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Katharine Wooller, Managing Director, UK, Dacxi

 

‘There is a lot of surface noise in the cryptocurrency space and most of it is the psychobabble of investor sentiment. One week it is the sound of everybody rushing towards a feeding frenzy. The next the wailing and gnashing of teeth as those near the surface (the ones most exposed) get spooked and rush the other way, falling over each other in the race to escape.’

I wrote the above paragraph on June 11th as the introduction to an article I was asked to contribute to a national newspaper.

The piece was essentially about what drives the roller-coaster of cryptocurrency prices – a pattern I have often referred to as ‘exquisite volatility’.

 

IT’S EASY TO OVERTHINK IT

Day to day volatility is something that market analysts and crypto critics alike are obsessed with on a day-by-day basis. In my view they overthink it. The main thrust of my argument in June, with crypto prices tanking, was that ‘buying the dip’ is a tried and tested strategy. At that time Bitcoin was priced around £25,000. Over the next few weeks, it then ticked down even further to £21,762 on July 20th.

At time of writing, about a month later, it’s around £32,680 or US$44,700. If you follow certain online forecasts, pundits are now suggesting Bitcoin could push the $100,000 barrier before the year is out. But, as I said above, it’s easy to overthink things, and sensational predictions make headlines.

 

IT’S INVESTOR SENTIMENT THAT REALLY DRIVES PRICES

Cryptocurrency in general is currently trying to find its identity. Is it a currency or is it a commodity? Is it something you ‘trade in’ or is it something you use to ‘trade with’ – i.e., use to buy other goods? Currently short-term prices are being driven by traders not users – nothing wrong with that, the function of any market is to allow people to buy and sell and make a profit through matched bargains.

The value of any commodity is only what somebody is prepared to pay for it, or what they can sell it for. On a speculative basis, rising values are driven by fear of missing out (FOMO) when the price is on the way up, which ramps the price up.  Downward values are driven by fear of losing out (FOLO) when the price starts dropping and the feeding frenzy turns into a selling frenzy.

Interestingly, traders measure their success not by what they can afford to buy with their crypto wallet, they measure success in terms of converting gains back to their local fiat currency – which rather misses the point of why Satoshi wanted to create a DeFi world in the first place.

 

THE RISK OF GAMING THE MARKET

The fact is that most traders are gaming the market. The risk is that there are some really big swinging crypto traders out there who can influence the market. Playing ‘coin’ like a computer game has inherent risks – rather like trying to predict when a murmuration of starlings over Brighton pier will change direction. I believe that as the market continues to mature and cryptocurrencies follow their destiny to become the enabler of decentralised finance on a global basis, the margins for traders will inexorably tighten.

At Dacxi we take the long-term view. We are firmly ‘buy-and-hold’ investors who, having looked at crypto’s growth curve and analysed the true sense of purpose of DeFi, don’t over-react to the short-term metrics. Dacxi is a wealth building platform and experience has taught us that very few people get rich quick – and more than a few of those that do, get poor again just as quickly.

For most of us building wealth takes a measured view and a measured time frame. From my point of view there’s nothing at all wrong with that!

 

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HOW CHANGES TO PROVIDENT FUND ANNUITISATION AFFECT APPROVED LUMP-SUM DISABILITY BENEFITS

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By Dolana Conco – Regional Executive – Alexander Forbes Retirement Consulting

 

New tax rules on the annuitisation of provident funds and lump-sum payouts made at retirement took effect on 1 March 2021. Fund members should be aware of additional implications for approved lump-sum disability benefits.

On retirement, members of these funds who were under age 55 on this date (known as T-day) may still take amounts which accrued prior to 1 March 2021, plus the fund return, in cash. Members over age 55 on T-day will have access to all amounts in the fund in cash when retiring from that fund. This is referred to as “vested benefits” as opposed to “non-vested benefits” where annuitisation rules apply to amounts above R247 500.

 

Approved lump-sum disability benefits paid by a pension fund

The approved (provided by the fund) lump-sum disability benefit in a pension fund was previously included as part of the fund benefit. It was normally treated in its totality as an ill-health early retirement benefit from the fund. The cash amount was limited to a maximum of one-third of the benefit, while the balance was used to buy a pension.

 

Dolana Conco

Approved Lump-sum disability benefits from provident funds

Those under the age of 55 will have the same limitations on their lump-sum disability benefit and how this is treated in terms of annuitisation as applies to pension funds.

  • Members over age 55 on 1 March 2021

The lump-sum disability benefit will be part of the vested benefits in the provident fund of which the member had membership on T-day. This means that the member can receive this payment in cash, after tax.

But if the member transfers to a new fund after T-day, and is then disabled, any lump-sum disability benefit paid out of the new fund will be a non-vested benefit. This means that annuitisation rules will now apply.

  • Lump-sum disability benefits under 55

Only amounts which have accrued before T-day fall into vested benefits. If a member is disabled after T-day, the lump-sum disability benefit payable will not fall into the vested benefits. The payment will be treated as a non-vested benefit. This means that the annuitisation rules, where the total benefit exceeds R247 500, will now apply to the lump-sum disability benefit.

 

Reform

While the above may be an unintended consequence of the annuitisation rules, we should take a step back and reconsider the real intention of reform.

Various stakeholders in the industry introduced and agreed upon reform as it became evident that current regulations were failing the member. Almost 50% of members retire on less than one-third of their final average salary, which renders a large part of people poor and dependent on the state. This is unsustainable and needs to change.

Reform has brought in different forms of laws to increase the savings culture and provide certain incentives – like a tax deduction if a member saves more, up to a certain limit.

With the lump-sum disability benefit now subject to annuitisation, funds need to consider this question: Would an income structured benefit still meet the intention and expectations by members, the fund and the employer in terms of their incapacity procedure?

The trustees and employer will have to revisit why the approved lump-sum disability benefit was selected in the first place. Was this to ensure that there would be a lump sum to:

  • meet the cost of additional care or adjustments to the home to assist the disabled employee, or
  • provide cash support ultimately to members who are found to be totally and permanently disabled?

If the above intent of providing a lump-sum benefit still stands, the trustees and the employer may need to consider changing the tax status of this benefit from approved to unapproved. This will ensure that the initial intention and expectations are still met.

Caution is made that changing to an unapproved benefit would mean that the employee would need to pay fringe benefit tax on the monthly premium. However, the benefit would be paid as a tax-free lump sum separate from the retirement fund for total and permanent disablement.

These discussions must therefore include decision makers on the employer side to:

  • help facilitate the messaging to the employees
  • manage any payroll impacts
  • align with their incapacity procedures

Any benefit structure implemented must be well considered to best suit the needs of the members. This could enhance the financial well-being of employees and lead to the best retirement outcomes.

 

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