Are we being ripped off again??

[wynn]

I think it is time we asked these questions of our investment advisors.

http://www.mg.co.za/article/2010-03-01-paying-for-value

After all it is our money and why should they earn the same on a lower return to us.

[Dave A]

The only thing that will stop it is if the investor pays more attention to where they are putting their money. I can only applaude financial journalists who expose this sort of thing.

[Ann Williams]

Article on investments

Have a look at an article that I wrote recently about the soundness of investments in business models such as Amway and U-Care.

http://www.2bbusiness.co.za/2010/03/03/investment-schemes-why-do-we-keep-falling-for-them-2/

[desA]

I think that we are far too trusting of our financial advisers & brokers. I've had bad experiences with structured packages, even from reputable names.

I made a decision a while back to rather invest directly into my own technology developments. At least then, I either see a direct reward, or enjoy the process along the development pathway. The fruits of these technology developments have value, which can be leveraged.

[jinxster]

Alas, I must say with investment. I don't think your getting ripped off at all.

Basically investing money in places is the idea of, retire and live off the interest.

You arent doing anything, you give the money and leave it alone. If you have R100 000, you can't make it R100 001 by leaving it under your matress. So if your investment broker makes your R100 000, R106 840. You can be glad. If he makes it R99 999.. er get your money fast.

The arguement is in a fixed deposit account you could of made more, well then you must get off your ass and start working by finding better investments and moving the money into another investment.

The reason why brokers havent really told their clients this type of formulas is becuase A) it is obvious, and B) the point of investing was to be a lazy ass.

It costs the broker the same fees, but his income is in fact less now on capital interest reinvestment policies. So the broker is losing to. You must remember he actually works to find where the money should go.

As a suggestion, there are a lot of cash generating businesses who have hit a financial kaputz nowadays and just the finance charges on their own debts are the difference between a profit and loss, why not invest there?

You may lose it, but remember you can mos do a better job than the broker.....

Your question should be, can I work at a cheaper rate than the broker....

Answer, generally if you drive a R50 000 car and he drives a R600 000 car... er your answer is yes.

So the point is to work for your money, not be a lazy ass and complain about being ripped off.

[wynn]

And here is the next question.
Are we being ripped off?

http://www.mg.co.za/article/2010-03-24-we-need-to-demand-more-from-our-retirement-funds

[Dave A]

About 43% of members believe that they will have enough to retire on, while fund trustees believe that figure is closer to 26% and the reality is that only 6% of people will retire comfortably.

And I can virtually guarantee that the 6% did not rely on pension funds to achieve that position.

If trustees believe that only 26% of their members have adequate retirement cover, shouldn't it be their duty to inform the members of this? What members do with this information is then the members' responsibility.

Like get their money out of the financial managers' sticky paws and invest it in something worthwhile directly themselves? Right - like pension fund managers are going to let that happen

Or bargaining councils, trade unions...