The Financial Coach

MANAGING PEOPLE AND THEIR EMOTIONS AROUND MONEY

Cash guarantees?

We have come across many clients recently who are wanting to move their funds into the “bank” following the very poor returns of the past 5 years. Their rationale usually revolves around the fact that at least they would be guaranteed a return of ±7% per annum compared to the dismal returns from the market. …

Guaranteed returns or guaranteed losses?

It seems trite to be talking about investment returns in the context of the “feesmustfall” campaign however, there are people who still need to invest and grow their money and in some ways life goes on. One of the more frequent conversations we are currently having is around the issue of market volatility – which …

Risk free returns?

I recently saw an advert for RSA Retail Bonds that was advertising “risk-free” returns. This kind of thing really gets up my nose and in my opinion it smacks of false advertising…RSA Retail Bonds are not the only culprits – just about all of the banks do it too.  “No fees or commissions” or “Risk-free”. …

(10) Dumb ways to die (financially)

A year or so ago my kids introduced me to a very cute you tube clip, “Dumb Ways to Die” which was a public service campaign to promote rail safety in Melbourne, Australia. It quickly went viral – you can watch the clip here https://www.youtube.com/watch?v=IJNR2EpS0jw For some reason I found myself humming the tune while …

Not even with a very long barge-pole

I was recently asked by the editor of Finweek what I thought of Sanlam’s “new” RA. Here is my response: “On a level, Sanlam could be applauded for trying to encourage saving for retirement in SA. However, it is my belief that anyone that can offer me a “bonus” or “reward” at some stage in …

Start now!

I had an interesting meeting with a young client recently who was at great pains to tell me that he had managed to get off the company pension fund because they were taking too much money off his salary each month and the fund was far too boring for someone his age. He felt that …

ETF versus Unit trusts

You have a couple of hundred rand per month that you would like to invest and you have decided that you want to go the passive or index option. You like the idea of DIY and on top of that you are cost sensitive…you have also heard that unit trusts are expensive and if you …

Fundisa revisited

Just under 6 years ago, ASISA (Association of Savings and Investments in South Africa) launched what should have been a really exciting education savings initiative called Fundisa. The idea was to provide a unit trust alternate to the traditional insurance based products. In addition, government was offering a 25% bonus contribution to all investors. On …

Gold coins

One of my clients presented me with an advert for “South Africa’s Randiest Hedge” which was carried in the Sunday Times on 13th March this year. It is an advert for gold coins and goes on to proclaim the virtues of investing in gold, especially if one is “feeling switched off by current financial offerings”. …