Don't Lose Your Pension! 8 Questions you absolutely must ask your financial advisors

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I'm a Pensioner, where should I invest?
This was a question asked by a reader to fin24.com's web portal. Here is the gist of the reply:
" So, let's look at tax first. If a person retires at 65, the rebate on interest is R32 000 per year.

At current money market rates of about 7%, you will pay tax on amounts over R456 000.

Even if you don't have R456 000 cash, the return right now is still only 7% and inflation is about 6.3%. Over time this trend tends to average out to about 1% to 2% real return on cash.

This is why some form of risk is taken by investing in shares or property.  Read the entire article at: http://www.fin24.com/articles/default/display_article.aspx?ArticleId=2575212

 

Once again, how do ETFs compare with mutual funds?
According to Mike Brown, CEO of online transacting platform etfSA only 5 out of 47 actively managed unit trust funds (mutual funds) were able to outperform the Satrix to 40 over the 5 years from 2005 to 2010. Read the rest here:    http://www.fin24.com/articles/default/display_article.aspx?Channel=News_Home&ArticleId=1518-2438-2439_2577120&IsColumnistStory=False
Is  cash always really that bad?
Media24's business news reported on Thursday 25th March 2010 that Marriott Asset Management CEO, Dr Simon Pearse said the average money market instrument had nominal returns of 10,1% per year over the period 2007 to 2010. In the same period equity (shares) returned 2,6% or 6,5% in an industrial index, or 7,5% in commodities.