The Financial Coach

MANAGING PEOPLE AND THEIR EMOTIONS AROUND MONEY

Lies we tell ourselves

I recently had a conversation with someone who told me that when she was on her way (walking) to a very important meeting, a bird pooed on her head and clothes. That meant that she had to turn around, go home and shower and get changed into a fresh outfit. “Oh well” she said, “isn’t …

Nedgroup Core Accelerated Fund

Regulation 28 has long been a frustration of many retirement fund investors with the Financial Services Board having applied a “one size fits all” approach. That means that within Regulation 28 confines, a 20-year-old investor in a retirement fund is treated the same way as a 64-year-old investor with respect to the maximum exposure that …

Sanlam Cumulus Echo RA

I was recently approached by someone for help with her Sanlam RA’s – they are the bad, old traditional life RA’s with opaque fees, poor returns and hefty penalties if you make any changes before the term ends. It seems that Sanlam has found a way around this though with their Cumulus Echo RA where …

To pay a penalty or not?

A client of mine presented a potential dilemma to me. He has a living annuity through Liberty Life but also has the bulk of his living annuity funds on a LISP platform. He was wanting to move the Liberty one to the LISP and consolidate his investments on one platform*. Under normal circumstances there should …

Is everyone thinking it but no one prepared to say it?

What if SA is where Zimbabwe was ±20-25 years ago? With the benefit of hindsight, what would the average Zimbabwean do differently? Would they have stopped investing into their pension funds and bought more foreign currency? Would they have emigrated? Would they have bonded their houses to the hilt and taken the funds offshore? I …

Dont panic – plan!

There are essentially 2 emotions that drive human behaviour when it comes to money: fear and greed. Both of them can result in investors behaving irrationally and this can result is significant financial losses if we are not careful. For many South Africans there is currently a lot of fear around the future – it …

It’s too late to panic

As we wake to the news of a significant cabinet reshuffle by Mr Zuma and that the rand has lost another 4% on the news, there will be a tendency to panic. Now is not the time for knee-jerk reactions. The market will do that for you. Like a pendulum, it will overshoot as people …

RA’s still make so much sense

I must admit to feeling quite deflated post the budget speech – kind of feels like we are just getting squeezed even more and that there is little motive to working hard and attempting to save when in reality we are just being taxed more and more and are given little incentive to save (R33000 …

TFSA or not to TFSA?

Alec Hogg recently wrote a piece encouraging people to take full advantage of the tax free savings account before the end of February (http://www.biznews.com/undictated/2016/02/05/go-full-out-for-tax-free-savings-accounts-but-with-two-provisos/)…I disagree with him on this one and here are the reasons why. Sorry Alec but I disagree with you on this one…I have previousy written about how I’m not so excited …

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 …