Consider the following – what would you advise the client? Client A took out an insurance based RA in 2003 (23 year term). She started a debit order of R450 pm (escalating at 10% pa). The current fund value is R63500 The company claims a return of 11.8% pa on the funds but the maths shows that she has had about 6% per annum. She now wants to move the RA to a unit trust RA (where there is no contractual obligation and no initial...

The Dilbert cartoonist, Scott Adams, earned a MBA from Berkeley, worked at a bank (got held up twice at gunpoint), and is worth millions. So we presume he knows a thing or two about money. In an interview with the Akron Beacon Journal, Adams says he read about a dozen personal finance books and began working on one himself. However, he found it all boiled down to these nine points and he “couldn’t figure out how to fluff...

2009, what a year! Markets have done what they always do – surprised us in the short term. We have seen the JSE ALSI run from just over 17500 in March to just under 28000 at the end of December. That’s more than 54% up since March when everyone thought we were facing the worst financial crisis since the Great Depression. (And offshore market recoveries have been even more spectacular.) During this time much has been written...

So it looks like the “fuss” is all over and the equity market is set to run even further…I guess it is at times like these that you need to make sure you are “in for the ride” and not sitting on the sidelines watching it all go by. But it is also important that investors do a little “stock take” (pun intended) and understand/remember the following…afterall, has anyone seen the fat lady sing yet? Investing ...

I recently had a most disturbing (if not revealing) conversation with a board member of ASISA (the association for savings and investments in South Africa). But before I proceed, a bit of background and history on ASISA. The following is taken directly from the ASISA website www.asisa.co.za. (If you already know all of this then scroll down to “At the beginning of July…”) ASISA was formed in 2008 by members of the Association of...

I came across a 76 year old lady this morning who was sold a 10 year endowment at the age of 71 (through Old Mutual Horizons) for R10000 per month (yes, ten thousand rand!). 5 years later her situation has changed, she cant afford the premium anymore and needs to make a change…surprise, surprise, she is going to receive huge penalties for doing this. This is just wrong and I dont care how anyone might try to justify this, there is no...