Welcoming In 2019

We'd like to take the opportunity to wish everyone a prosperous 2019. Today may be a long Monday - but if ever - this is also a good day to get back into action!

This year promises to be another exciting year for South Africa, with volatility the only real certainty. Despite South Africa's strong constitution confidence in the government's willingness to tackle and respect for the rule of law continues to erode foreign investor confidence. Views on the rand are mixed as to where the rand will go in 2019.

Commentary by the E4F Dealing Desk:

Rand forecasts ranging from 12.75/$ - 16.50/$ by year end.

Our highlights for 2019 include: SA's General Elections (May), Brexit negotiations (on-going), how many US Fed rate hikes are on the cards (and importantly the pace of hikes), the US/China Trade War (is a resolution possible?) and whether we'll we see a fresh emerging-market crisis.

The rand opened 2019 at 14.34/$, 18.30/£ & 16.45/€, after losing ground to the majors in quiet holiday trading.

Last week saw the rand touch 14.68/$, before closing on Friday at 13.94/$ (how's that for a volatile start). Given the current rand strength, it presents a great opportunity for anyone looking to purchase USD, EUR & GBP.

We have Fed Chair Powell speaking on Thursday in an otherwise quiet week.

Please diarise the following important dates requiring your and our actions before the end of the 2018/2019 financial year:

• January to December 2019:
  Clients can make use of their annual discretionary allowance's in terms of South African Reserve Bank Exchange Control, South African residents are entitled to 2 allowances: R1 million discretionary allowance (DA) – this allowance may be used for foreign investment without having to obtain tax clearance (a tax number is required), as well as; travel, gifts, loans, studies and alimony. R10 million foreign Investment allowance (FIA) – this allowance can be used to invest funds overseas and requires the applicant to have a green bar coded South African ID book and to obtain tax clearance from South African Revenue Services (SARS) before proceeding.
• January – February 2019:
  Clients can make use of their annual discretionary allowance's iro tax-free investment. The maximum amount you can put into your account per tax year is currently R 33 000, with a lifetime maximum of R 500 000.
• January – February 2019:
  Clients can make use of their annual allowable deduction allowance's iro retirement savings. The maximum allowable deduction will be determined as the greater of: 27.5% of taxable income, or 27.5% of remuneration Limited to R350 000 per year.

If you wish to make an additional contribution to your tax-free and retirement savings for the 2018/2019 tax year, we need to receive their instructions, supporting documents and payments before Wednesday 20 February 2019.

Our integrated wealthcare approach is based on your personal priorities and aspirations. This process is designed to give you a clear course of action for pursuing your goals that span various time horizons and life stages to empower you to do extraordinary things with your wealth, both now and in the future.

Regards,

Shane Thom, CFP^® GTP(SA)™
Managing Partner: Integrated Wealthcare Advisor