Will JUNK BONDS, otherwise known as sub-prime (for that read sub standard loans) really impact in SA. the latest I hear is that with a 50% rise in interest rates in a year and potential future rate rises on the horizon being an Estate Agent just went back to be the tough job it alsways was and that by next April the full impact of the higher costs will be really hurting all those who have over extended themselves.
Even Granny Grundy doesn’t keep all her eggs in one basket, so when I read a leading estate agent advising people that their entire investments can be held in property I was a touch surprised.
We know that a spiraling interest rate, 50% up on a year ago, and the complexities of the Credit Act have taken an axe at house sales, but its really a bit rich to try and get people to put all their golden eggs into chicken coups, even if they are made of bricks and mortar!
It also begs the question, is this blatant promotion of a single asset class bordering on asset management? If it is, then should not your friendly neigbourhood estate agent be licenced as a category two discretionary asset manager under FAIS? I will leave that one for you to decide.
Over the last five years we have met literally thousands of people, in SA, who are confused with regards to their retirement funds or, as they are known in financial services, their compulsory monies. Many people have a number of RA’s (retirement annuities) or other pension entitlements and many of these currently reside at different institutions. They do not always know the value of these investments, they may have lost contact with the person who sold it to them and they seldom have a clear transparent picture of what they are paying in fees. Clearly this is not an acceptable situation.
There is, however, a solution! The Warwick Retirement Consolidator offers you the following …
I’m about to become one of those boring and predictable writers, who every year says the same thing, so here goes!
Gosh, I can’t believe it’s that time of year already. Well actually it is, this is the final Blue Chip of the year and I really cannot believe that 2007 will be the fourth year in which I will contribute to the magazine.
