The Financial Coach

MANAGING PEOPLE AND THEIR EMOTIONS AROUND MONEY

The watched pot…

There’s an old saying about the watched pot never boiling, which simply means that if you wait anxiously for something to happen, it seems like it takes forever.

Your greatest financial risk is not financial; it is physics!

Over the years as we have chatted to clients about financial planning we have settled down to the “big 5” risks that everyone faces and the resulting financial (and emotional) risks that they present to the person and their family. Simply put, these are (in no order of importance): Dying too soon Living too long …

The ultimate savings & investment vehicle!

Today I got a call from a journalist asking a few questions about what a beginner investor should do if they want to start investing. I think that they were looking for “tips and tricks” about which funds or shares to choose. Here was my reply. 

Remove all sharp objects…

I attended a presentation by one of the SA asset managers recently…it was a good job that there were no sharp knives around. It was real slit-your-wrists stuff! Their view is that SA is pretty much stuffed and that unless there is a significant change in ANC leadership that we are on the “low road” …

The value of advice?

Much has been written about the value of financial advice. There are many people who believe that financial planners offer little value for the fees charged while there are others who believe that the value financial planners add is very significant. Research by Morningstar has revealed that the value of advice (they call it “gamma”) …

Memories

On a recent car trip, my daughter insisted on playing some of her music – 2 of the songs on the “hit list” were “Bear necessities” from the Jungle Book and “Hakuna Matata” from The Lion King. When the music finished there was a follow up question from her to me – “what’s your favourite …

Normal service has resumed

I found myself facing a crisis recently. I have always promised clients that I would only invest their funds where I myself am prepared to invest for myself and my family and yet with the recent shenanigans from our president who saw fit to remove the finance minister, I found myself at a cross roads. …

One page financial plan

I have just finished reading this excellent book by Carl Richards… The One-page Financial Plan – some notes from the book: “The best financial plan has nothing to do with what the markets are doing, nothing to do with what your real estate agent is telling you, nothing to do with the hot stock your …

You should be ashamed of yourselves, Liberty Life

I just came across a client who has been sold a decreasing life annuity by someone representing Liberty Life. Yes, I know that there is no such thing (officially) as a decreasing life annuity (no one would buy it if there was) but this is effectively what a non-escalating life annuity is. You have condemned …

Is there anyone out there at Old Mutual, Liberty and Sanlam?

One of the frequent tasks we face for clients is something known as a Section 14 transfer – this involves moving a retirement annuity (or preservation fund) from one company to another. Typically this would be from an insurance company to a unit trust company. Reasons for clients wanting to do this are many, such …