Wealth Viewpoint | March 2024

Dear Client

Welcome to our March 2024 edition of FC Viewpoint.

February was another one of those challenging months, driven down mostly by resources. The JSE All Share Index (ALSI) ended the month down -2.44% on a total return basis, the All Bond Index (ALBI) ended the month down -0.58%, while cash returned 0.65%. Global Equities (MSCI ACWI in ZAR) returned 7.57%, and Global Bonds (FTSE WGBI in ZAR) ended the month up 1.80%.


  • The JSE All Share Index is on 74 062 as of Thursday 14 March 2024.
  • 1 US Dollar will cost you R18.63; 1 Pound = R23.87 and 1 Euro = R20.39.
  • Annual consumer inflation (CPI) is at 3% .
  • The prime lending rate in SA is 75% per annum.
  • The price of Oil is $83 per barrel.
  • Two-pot retirement system set for 1 September 2024.
  • Previously, markets tempered expectations for 2024 interest rate cuts due to persistent European inflation and a robust US labour market. However, recent developments have led to a reversal, with markets now pricing in up to four 0.25% rate cuts by both the Fed and ECB this year.


What is a Buy & Sell Agreement and who needs it?

The purpose of a buy-and-sell agreement is to provide the surviving co-owners with cash to purchase the interest of a deceased co-owner. The owner(s) of the business can set up an agreement between themselves to buy their shares upon their death. The agreement will usually go together with a life insurance policy that covers each life(partner) insured. The future buyer will receive the proceeds of the policy and use this to buy the deceased’s share in the business. This way, the surviving spouse or family member can make use of the cash instead of becoming involved in a business that they’re not interested in or do not have the skill to run.

What is Keyman insurance and who needs it?

Keyman insurance is meant to cover the loss of a key employee, especially if they’re highly skilled/experienced. For smaller businesses, the key person is usually the owner or founder. The cash that pays out on the death of the insured life (The Keyman) can be used to cover the costs of recruiting, hiring, and training a replacement for the deceased person. If the company doesn’t believe it can continue operations, it can use the money to pay off debts, distribute money to investors, provide severance benefits to employees, and close the business down in an orderly manner. Key person insurance gives the company some options on the death of a critical person.


A budget helps you to plan for the best use of your money so that you’re making sound decisions about how to use your money. Budgets often fail because people overcomplicate them.

The 50/30/20 budget (also called the Balanced Money Model) is an easy-to-implement formula that only requires three categories.

50%: Needs – the bills that you absolutely must pay and the things necessary for survival.

30%: Wants – all the things you spend money on that are not absolutely essential.

20%: Savings – To allocate 20% of your net income to savings and investments.


There are two main challenges in life, especially relating to Financial Planning:

  • Dying too early
  • Living to long

The solution to both is cash at the right time. We help our clients to plan properly for both scenarios.

We would like to invite you, to make us part of your financial journey, in good and in challenging times and every life changing event in between. Feel free to call us, or to book a physical or online meeting, we are here for you.

Wealth regards,

Fanie Jansen Van Vuuren CA (SA), CFP®

Director: FC Wealth and Investments (Pty) Ltd

E: [email protected]  |  T: 083 384 5868

W: www.fcfin.co.za