Retirement Archives -

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. …

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 …

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 …

Is there still a case for RA’s?

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 …

Something’s gotta give and it’s not government

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 …

They prowl the empty streets at night…

“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 …

Money or the box?

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. …

A timely reminder…

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 …

Retirement – life event, not just a financial event!

Results from the American Demographics poll showed that retirement is more difficult than becoming a parent or than getting married*. Those that felt retirement was the most difficult adjustment said that they struggle with the monotony, boredom, lack of purpose and lack of intellectual stimulation that traditional retirement offers. So if this is the case, …

The Financial Coach