Legendary media advocates Allan Greenblo, Magnus Heystek, Alec Hog Looking back on the impact of Greenblo on the financial journalism situation in South Africa. Greenblo was fiercely independent and had no hidden agenda. This is a similar feature shared by smashers. Brenthurst Wealth Founder.Conversation is dominated by Pension fund Similar types of products that have killed many South African rescuers in the last decade.Due to strict investment restrictions within Rule 28, Retirement fund South Africa Investment product. Most of them have been declining in performance for most of the decade. Heystek argues that many of the country’s largest financial services institutions are partially responsible, as the slump in investment performance appears to have been wiped out under the floor covering. – Justin Rowe-Roberts
Magnus Heystek describes the poor performance of institutional pension funds over the last decade:
I spent last week browsing the website of one of our largest financial insurance companies. I looked at that regulation 28 fund and found countless – hundreds, all with different names. They are all the same, a regulation 28 fund, which means they are in line with the pension fund. I fought for one, three, five, and even up to eight years to find a particular fund that exceeded inflation. It excludes friction costs. There are numbers, but people aren’t talking about it. Just in the last few weeks, several reports have been released. 10X has announced a retirement survey, there is a Sanlam benchmark review, and Alexander Forbes has published the survey. What was lacking in all these reports was that they did not mention the bad returns of pension funds over the last eight years. None of them mentioned return on investment. They said’yes, people aren’t saving enough. People are cashing their pension funds. People are doing this. People are doing it. I think that’s true, but to some extent.
Why wipe out bad investment returns under floor coverings:
Well, that reflects very badly on themselves and Regulation 28. Regulation 28 changed just 10 years ago, and we have this current formula. I think it was a big mistake. The timing was bad. Until then, most retirement pension funds, funded funds, and conservation funds allowed individuals to choose their own risk profile, including going 100% offshore. It was picked up 10 years ago. Now everyone has to drive the same car and the same color. Any car will do as long as it is black. As a result, over the last decade, especially due to strict regulations on offshore components, offshore started at 20% and rose to 30%, but not enough. Our stock market is not producing enough growth for retirement. I have seen some US pension funds that you have the freedom to choose, and Sweden, where you are 100% free to choose what you like and what you want to put in your pension. Funds that have countries like Sweden, Finland and Norway. Well, they made inflation plus 10%, plus 12%, plus 15%. South Africa, Zero. In some cases, the inflation rate is deducted. In my opinion, this is a problem that is fairly carefully ignored by the financial services industry.
About unreasonable pension fund corrections:
Back in 2010, South Africa had a great time to return in terms of historic performance. Between 2002 and 2008, the earnings were surprisingly good. It was all driven by the commodity cycle and China and we had a huge bull market. So, looking back, the return on investment was very good. I can’t prove that there is a coercion between the Treasury and a major investment company, but at some point someone whistled, “Everyone needs to talk about Regulation 28. We haven’t delivered the goods. I have to say.
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Magnus Heystek-People are simply retiring without enough money
Source link Magnus Heystek-People are simply retiring without enough money