wolverine
Member Since 31 Dec 2006Offline Last Active Apr 19 2012 12:23
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In Topic: Investments - the ins and outs
10 April 2012 - 02:02
My 5 cents on the question
Forget about Coro, AG, Investec, OMIGSA, SIM and any other asset manager mentioned here as these choices are often subjective and almost always reflect a nice history lesson but have little relevance to the future.
Decide on a return that you feel is appropriate ito your objectives (investors are inclined to say something arbitrary like 'I want high/maximum growth'- what does this mean? I guess if all the contributors here had to post their figure here, we would have some wildly divergent opinions of ,ostensibly, the same term.
Once you have got your figure, ie. 10%, I recommend breaking it down to a function of inflation (the only way you will ever be better off is if you can beat inflation over the longer term). Say inflation is 6.5%, you then need to beat inflation by 3.5% after cost to get to your desired 10%. If the cost of asset management, advice and possibly product amounts to 2.5% you therefor need to look for a fund/ portfolio that aims for a return of CPI +6/7.
It is also advisable to look at the mandate of the fund/portfolio you intend investing in and look for flexible mandates; this means the asset manager is able to make decisions between asset classes (bonds, equity, cash, offshore, property) and you dont have to rely on your financial advisor to do this. The financial advisor is in many cases not a registered fund manager and I believe you should be fairly sceptical of anyone who claims to be (check credentials and if possible ask for references)
There is the eternal song and dance about costs, particularly advice and product cost; bear the following in mind: the reason so many people get poor investment returns is because we are as a general rule prone to buying high and selling low, a good financial advisor is crucial in trying to protect us from ourselves, we often forget our investment objective (especially in times of market volatility) and need a rational third party to keep us focussed. A good financial advisor is worth his/her weight in gold.
The second issue is around product cost: Satrix and direct unit trust investments are as a rule cheaper than an investment via a product platform. This is where you need to tread carefully as an investment in a particular fund, etf etc is that and no more, if your choice is ill advised or the fund/index suffers a setback you are stuck with it, many product platforms offer you the facility to switch between funds, asset managers, products at low or no cost. A product platform also allows you to diversify between various asset management companies simultaneously.
Be careful of being blinded by a cost argument : Price is what you pay, value is what you get.
I would suggest you be slightly more conservative with the lumpsum investment and take a higher risk approach with you monthly/ recurring contributions as you will benefit from rand cost averaging, which can be beneficial over the medium to long term.
Ok so it was a bit more than 5cents worth.
Sue me
Forget about Coro, AG, Investec, OMIGSA, SIM and any other asset manager mentioned here as these choices are often subjective and almost always reflect a nice history lesson but have little relevance to the future.
Decide on a return that you feel is appropriate ito your objectives (investors are inclined to say something arbitrary like 'I want high/maximum growth'- what does this mean? I guess if all the contributors here had to post their figure here, we would have some wildly divergent opinions of ,ostensibly, the same term.
Once you have got your figure, ie. 10%, I recommend breaking it down to a function of inflation (the only way you will ever be better off is if you can beat inflation over the longer term). Say inflation is 6.5%, you then need to beat inflation by 3.5% after cost to get to your desired 10%. If the cost of asset management, advice and possibly product amounts to 2.5% you therefor need to look for a fund/ portfolio that aims for a return of CPI +6/7.
It is also advisable to look at the mandate of the fund/portfolio you intend investing in and look for flexible mandates; this means the asset manager is able to make decisions between asset classes (bonds, equity, cash, offshore, property) and you dont have to rely on your financial advisor to do this. The financial advisor is in many cases not a registered fund manager and I believe you should be fairly sceptical of anyone who claims to be (check credentials and if possible ask for references)
There is the eternal song and dance about costs, particularly advice and product cost; bear the following in mind: the reason so many people get poor investment returns is because we are as a general rule prone to buying high and selling low, a good financial advisor is crucial in trying to protect us from ourselves, we often forget our investment objective (especially in times of market volatility) and need a rational third party to keep us focussed. A good financial advisor is worth his/her weight in gold.
The second issue is around product cost: Satrix and direct unit trust investments are as a rule cheaper than an investment via a product platform. This is where you need to tread carefully as an investment in a particular fund, etf etc is that and no more, if your choice is ill advised or the fund/index suffers a setback you are stuck with it, many product platforms offer you the facility to switch between funds, asset managers, products at low or no cost. A product platform also allows you to diversify between various asset management companies simultaneously.
Be careful of being blinded by a cost argument : Price is what you pay, value is what you get.
I would suggest you be slightly more conservative with the lumpsum investment and take a higher risk approach with you monthly/ recurring contributions as you will benefit from rand cost averaging, which can be beneficial over the medium to long term.
Ok so it was a bit more than 5cents worth.
Sue me
In Topic: Cape Epic Stage 3 : 147km, 2900m
28 March 2012 - 11:09
TiBones, on 28 March 2012 - 11:04 , said:
Please explain the 360 naming thing. We have 360 life and 360ne. is there a connection anywhere?
360 Life is a life assurance product in the Nedbank stable (life, disability etc).
36One is a boutique asset manager
While both sponsors are in the financial services industry, they are unrelated
In Topic: JHB Hubbers Charity Ride 2011
12 December 2011 - 02:44
Dangle, on 12 December 2011 - 12:25 , said:
Yes, thanks in many ways to peoples inability to communicate and give feedback, they expect one or two individuals to do absolutely everything, even peg people to attend, also for the Pretoria clan, Jo'Burg city was soooooo far out of their way 
But in short, yes it's a flop, like this thread, I think the number of posts here will show how disinterested the people really are.
But in short, yes it's a flop, like this thread, I think the number of posts here will show how disinterested the people really are.
Was busy with my own charity drive for 11 kids in foster care and 24 abandoned children and babies in Centurion so didn't pay attention to this thread
Hate to admit Dangle that in the years I've been on this forum that is the story, couple of peeps do everything, pretty much like life in general.
