The recent changes to Regulation 28 rules around retirement funds has caused a bit of “excitement” in the asset management industry and I have seen at least 2 articles making a case that the stricter enforcement of the Reg 28 rules make Retirement Annuities  unattractive investments, especially for younger investors (see the article by Jan Mouton of PSG Asset Management –...

Not for the first time, I received an email from a client whose domestic worker is close to retirement and who is concerned about having “too much money” and that this will impact on her ability to qualify for an old age pension. She has been told (via the grapevine) that when she applies for a pension the government will investigate her personal circumstances and if she is “rich” she will not qualify for a pension. There are...

“They prowl the empty streets (at night), waiting in fast cars and on foot”* looking for unsuspecting consumers. Yes, it’s that time of year again when Retirement Annuity salesmen are on out in full force. February is “traditionally” RA month as it signifies the end of the tax year and anyone needing to put money into an RA has until the end of the month to do it. RA’s have received a lot of press (not all of it good) and...

It is incredible how often the same “issue” or question comes up in quick succession…just this week 2 clients have both asked about cashing in their preservation funds to try to use the funds elsewhere – 1 to invest the funds into her bond and the other to invest the money into a share portfolio. This article will deal with the tax implications of doing this (we will explore the merits of this at a later stage)*. For those that are...

A wealthy businessman was horrified to see a fisherman sitting beside his boat, playing with a small child. “Why aren’t you out fishing?” asked the businessman. “Because I caught enough fish for one day, “replied the fisherman. “Why don’t you catch some more?” “What would I do with them?” “You could earn more money,” said the businessman. “Then with the extra...