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Thread: How many of us invest our pension in our business

  1. #11
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    the fastest way to becaome a member of the millionares club...besides being a goverment official...become a life insurance broker

    the way i see it the broker who arrives at your house in a R2 mill. vehicle to sell you policies didnt get there by his investments...he got there with your money...they say there is no such thing as a free ride...except when it come to life insurance.

    when i was admitted for the second operation to remove the rest of the pieces of bone which had shattered in my elbow from the accident...i had to get pre authourisation...it all went thru no problem...everything was covered so i thought and so did the hopsital...one small problem...a clause on page 3 of the policy...my arms and legs where not covered by the hospital plan...dont laugh its not a joke i didnt find it amusing when i had to fork out R32000.00 for the operation.

    another bit of useful information...the road accident fund does not cover you if you are the only person involved in the accident...it is only for 3rd parties.

    and you will only get paid out for partial or total disablity if you are in a wheelchair and cant move your arms or legs and you have a broken back...so consider this when a broker tries to sell you disiblity cover...you gona need more than disiblity cover if you end up like that.

  2. #12
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    I agree with Dave A and tec0,

    Investment in more stable stock is a much, much safer bet. I have been around long enough to know that there is a very good reason or two why we always get new policies. With payout time, they will refer to clause XX that were publiched in YY, blah, blah, blah for "Sorry we are not liable to pay", but thank you very much for your contributions.

  3. #13
    Diamond Member tec0's Avatar
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    In any and all events taken into consideration I cannot help but to wonder back in 1985 where a very old man pointed a double barrel shotgun and ordered a manager to pay out the promised amount. His method may be controversial but as I understand that the old man was arrested and the real criminal could act as if he was the victim.

    There is no real body to protect the customer against large organisations bend on stealing from the sickly and the old. Life has become just a long stream of endless paper work. It is always this and that and the product is never delivered as promised.

    I was told that I had to get a very expensive operation and to this day I refused because of medical aid vultures and BS doctors. Yes my body is in pain but it is a small price because my family may end up picking up an unbelievable bill. I have said it before I have no Respect for a Doctor.
    peace is a state of mind
    Disclaimer: everything written by me can be considered as fictional.

  4. #14
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    I think we the consumers must take our power back and go back to the basics with regards to retirement plannin. If one wants to retire well, one must work hard for it. There is no such thing as "passive income". With regards to tax saving, every party is by law required to pay a levy on income received. Do not be fooled to think you can escape tax.

  5. #15
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    (I also wish to add that assets can also be a good investment. Certified fully registered diamonds is a good way to create a frozen asset. It will remain frozen until you sell them on. Also the tax man cannot tax diamonds “every year like a house... “keep that in mind” there are still safety deposit boxes available and is your best bet.)quoting tec0

    have always had a problem with return on diamonds.this is an artificially created market where when demand drops then supply is halted to keep prices at a particular level. i have been proved wrong in the last 30 years as this bubble had not burst but perhaps in the next 50 years????? i said the same of the proof kruger rand market. one company allocated some sort of points to to its "proofness" & based on that marketed these coins.eveybody now knows what happened to that market.
    in conclusion i am averse to an "investment" in diamonds & this is a personal view.

  6. #16
    Diamond Member tec0's Avatar
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    The truth is nothing is without risk. It is true Diamonds value is artificially maintained. It is for this reason why I invest in certified diamonds. Take a moment to understand that billions is generated by diamond mining every year.

    Now to maintain the industry and to maintain profit they will never allow their product to be devaluated thus you’re very small investment will not lose its value. Let’s say for argument sake that diamonds lose all value and I lose...

    Well I have considered that option and that is why I also focus on desired metals, like gold and platinum. If these two markets fail then I will assume that there is no longer an economy left to worry about... The truth is your investments are also based on investment market value. If the market fails then yes I will be left with a loft of shiny rocks and shiny stuff but you will be left with a worthless piece of paper...

    I may be stupid to think this way, but as long as my investment is physical in nature “and cannot be taxed” until I sell it on, I am in control of it and not some big company with “unknown rules that disqualifies you from your investment”
    peace is a state of mind
    Disclaimer: everything written by me can be considered as fictional.

  7. #17
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    Understanding the Rules of Investing

    When devising an effective investment strategy, one must bear in mind that the rules one applies to generating wealth within ones own business are virtually completely opposite to the rules one should apply to investing.

    Many entrepeneurs believe that due to the fact they have obtained success in their businesses that they will be successful when investing. Unfortunately it is often their success in business which inhibits their ability to invest in a strategically effective manner.

    Lets consider some of the rules which are applied in business as opposed to the rules one should follow when investing

    One is subjectively involved in ones own business whereas one should appoint and independent advisor who is onjective and can remove emotive decision making from the investment strategy.

    One gears in business - utilising bank funding and other structures to grow and exapnd ones domain. When applying a preservation of wealth strategy, (which should be applied to a certain allocation of investment assets), one should not gear or borrow money to invest.

    In business, one should focus on the core of that business offering, narrowing down and strengthening that core. In investing, diversification is key to portfolio robustness and also key from a risk reduction perspective.

    Your business is your number one priority - this is where you create wealth. On retirement, your investment targets for the bulk of your accumulated capital should be preservation of that wealth in real terms (after inflation).
    This is a vital priority.

    An effective cash flow analysis and investment strategy are key to a successful investment. Each person has a different situation and thus requires a customised plan. The decision as to the asset allocation, currency diversification and liquidity requirements can only be determined after doing the cash flow assessment and from there, a detailed strategic plan.

    The unfortunate position of most investors is that they do not have their portfolios actively managed - a broker may invest your capital in good funds, but within a few months and with a changing economic environment, those funds may become the "dogs" and you could loose your investment capital.

    So, an effective strategic plan, a cash flow assessment, applying the right rules to each component of your investment portfolio, active management and a pro-active relationship with your advisor all all key components on getting on the right track.

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    Dave A (19-Sep-10)

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