January is considered the longest month on the calendar in terms of stretching your salary. And with a new year comes new resolutions, with the best intentions for the year ahead whether it may be regarding our personal finances, fitness or friendships … the list goes on. With the focus more specifically on investments and personal finances, our own best intentions might sometimes have adverse results on our own financial wellbeing.
All too often, retirement products are structured around their needs such as earning upfront commissions and fees. You must also ask whether the institution’s attention is sufficiently focused on managing your portfolio vs their primary business, for instance, short-term and life insurance. The problem with many of these fads is that they are not legitimate investments. Look at our homegrown Bitcoin Ponzi scheme Mirror Trading International that duped some 260 000 investors out of 23 000 Bitcoin.My advice: always be clear about what the underlying asset is that you are investing in. A legitimate financial advisor should be able to do so easily by showing you the funds and the assets that they hold.
My advice: If you have a long-term view, and your goal is capital growth, then you will need to strongly consider higher-risk investments.I’m of the opinion that the naming of Tax-free savings accounts does no justice to this product that it should rather be labelled as a tax-free investment account.
My advice: Rather invest in a tax-free investment account available on dedicated investment platforms like Momentum Wealth, Sygnia or Ninety One. These funds have shown much higher returns in the region of 10% and more.A retirement annuity is the go-to solution proposed by many advisors, usually those associated with large insurers.
The reason I suggest that young investors avoid RAs as a retirement planning option is because the tax advantages are insignificant when you are earning an entry-level salary.
BrenthurstSA Hi Ruan, i read your 5th advise with a twisted face in moue of disbelief. You say ‘jong mense’ must avoid RA & use TFSA which has a R36k annual limit. Please qualify ‘young individuals?’ And also you say they should avoid it ‘for the time being’ assomblif qualify the timeline.
BrenthurstSA Taking care of my debts and giving my family the best financially is what I have long waited for, TarellaCampbel thank you for helping me gain financial success.