February is the month most people focus on the budget speech, some want to see how much more they will spend on Alcohol and Cigarettes while others focus on maximising their retirement savings. 


You can save 27.5% of your total remuneration, limited to a maximum of R350,000 into a retirement product and significantly reduce your tax. Regularly saving for retirement is key to financial stability.  


You have two options to boosting your contributions, add to your existing policy through a once off voluntary contribution (policy dependant) or create a new policy where you have the flexibility to do a lumpsum contribution and add to it when it suits you. 


New policies are significantly cheaper and offer greater flexibility. Halving your fees from the typical 3% p.a to 1.5% p.a could see you build up 40% more capital after 25 years. And migrating to a new policy from an old policy will almost always reduce annual costs, but be wary of penalty fees.  


Three things to do to boost your retirement savings in 2018 


  1. Boost retirement savings with lumpsums from your bonus, tax-refund and windfalls 
  1. Track down old policies you have neglected and possibly migrate to cheaper new age policies 
  1. Use your Life insurance to boost your retirement savings, with additional lump sum boosts from your life insurance company or reduced fees. 


There is no time to waste! 


To implement changes before 28 Feb 2018 you must act now!  


Speak to your financial advisor or contact Prodigy Asset Management for a free retirement review. If you are interested email gavin@prodigyam.co.za 



The week ahead: 

Last week’s movers and shakers… 


Other Economic data releases of interest… 

Two to Buy 

Ashburton Midcap ETF – Investor Sentiment to boost Mid and Small cap Shares 


Foreign investors still have a significant amount of funds to invest in South African equities as a result of them withdrawing investments over the past three years. This will see funds flow into the broader market and filter into the Mid and small cap shares. These shares have increased earnings in 2017 yet their share prices have remained stagnant. 


This is a great ETF to for first time investors starting out and larger portfolios looking for diversification at a lower cost. 


Buy ASHMID below R8.35 for a long-term investment 


Blue Label Telecoms – Bouncing ahead of February Results Release 


BLU’s share price has fallen progressively lower since the Cell C deal. The company is using this deal to defend its distribution margin, benefit from the reduction in Cell C’s debt and ensure it’s the primary service provider for Cell C. 


We expect earnings growth to accelerate when the results are released due to Cell C and 3G deals earnings being included in these results. 


Buy Blue Label below R14.00 for a move back to R19 and a 50% gain.  





Long Term Ideas