Prescribed assets: a high price

Damning new data shows how bad savers had it under apartheid’s prescribed assets. Just how much could local pension fund members lose out if the government went ahead with a prescribed assets push? A lot, as it turns out. Isaah Mhlanga, executive chief economist at Alexander Forbes Investment, says there was a huge opportunity cost in the prescribed assets regime between 1956 and 1989. Back then, the apartheid government forced…

The benefits of increasing offshore exposure in post-retirement

One of the most significant once-off life events a person will ever experience is retirement.  Therefore a large portion of an individual’s working life is committed towards preparing for this occurrence, as one does not get a second chance at it.  This transition from actively earning an income to passively generating an income while in retirement is so important that an entire profession (financial adviser) and industry (financial services) is…

The value of RAs… Include them in ‘Plan A’ for every client

Question around the value of Retirement Annuities Q(RAs)  within  long  term  financial  planning  are frequently raised. The apparently simple response is complicated  by  constantly  changing  regulation,  most notably the Income Tax Act. Over time I have witnessed and participated in countless debates – and read many articles – on the merits of RAs. The topic attracts controversy with viewpoints often varying according to which side of the fence one sits…