The Financial Coach

MANAGING PEOPLE AND THEIR EMOTIONS AROUND MONEY

Letter from and reply to an anxious investor

Dear Gregg “Your pest client again! I was listening to an economist talking on the radio yesterday & he said we were not just in a recession but we are in a depression & it might take 10 years to come out of this. What if: What would it cost if I sold everything in …

Marcus Jooste’s school-boy error

Much has been written and much will still be written about the Steinhoff saga but after listening to some of the testimony and reading the bit below…there is only one conclusion that can be made and that is this: Ethics aside, Marcus Jooste’s biggest mistake was failure to diversify. It’s a classic school-boy error of …

A case for higher offshore weighting within a living annuity?

There is this strange phenomenon in SA called Regulation 28 that is applied to retirement funds. It stipulates that retirement fund members may not have more than 75% of their funds in equities and no more than 25% of the fund invested offshore

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 …

Lessons from Enron (and the strong rand)

One of the really difficult parts of dealing with people and their money is having to give them bad news about the performance of the funds in which they are invested. They usually react badly and look for all sorts of people to blame (most often this the advisor). Behavioral Finance psychologists tell us that …

Is there still a case for investing offshore?

Just over 10 years ago when I left the corporate world I put my pension fund into a preservation fund…and the R23000 odd that I invested then is worth about R23000 today…what happened? One of the important principles in life (and financial planning) is this: each time you make an important decision write down the …