Four score and seven years ago, the difference between the haves and have-nots was measured by dollars and cents. The haves lived a life of indulgence and leisure, while the have-nots toiled day and night just to make ends meet. But all that has changed as the focus of retirement has moved from money to health and well-being. The Baby Boomers have once again caused a fundamental shift during this next phase of life. The haves don’t look their age, have...
It’s time to hang up on cold callers! The loss of pension savings can have a devastating impact on an individual’s plans for retirement but this is an unfortunate reality for those who have fallen victim to pension scammers. The UK Government’s consultation response on pension scams shows its clear intention to ban cold calling in relation to pensions. A few thoughts Although the ban should help to limit the number of pension scams, individuals and trustees will still need...
Mexico's new, second stock exchange BIVA aims to be operating by the start of next year, as it bids to capture part of the existing market in Latin America's No. 2 economy and entice more companies to issue stock, the new exchange's president said on Monday. The Institutional Stock Exchange, known by its Spanish acronym BIVA, is set to formally receive its operating license at an event in Mexico City on Tuesday. It will compete with the Mexican Stock Exchange,...
At a time when personal savings, unlike in the past, fetch insubstantial returns, the current generation of employees is concerned over its post-retirement existence. There are also added features to modern-day life, with changing demographic structure, enhanced longevity, etc. Pension payout is becoming an ever-growing burden on the exchequer, and might become excessive, as has happened in Brazil. In India’s case, this is occurring at a time when almost 110 million people of retirement-age are not covered by any...
Ask any experienced financial planner what causes a retirement plan to fail, and they will likely agree that it is never a result of bad portfolio returns. So if a poorly performing portfolio is not the problem, then what is? Some of the answers may surprise you. Here are examples of how life's circumstances can derail even the best retirement plan, and what to do to avoid, fix or repair it. With improvements in medical treatment and increases in longevity,...
The Internal Revenue Service granted additional relief to victims of Hurricane Harvey on Wednesday by allowing 401(k)s and other employer-sponsored retirement plans to give loans and hardship distributions to aid them without incurring penalties. The IRS pointed out the relief is similar to what was provided to victims of previous disasters, including Louisiana floods and Hurricane Matthew. The IRS said 401(k) plan participants, along with employees of public schools and tax-exempt organizations with 403(b) tax-sheltered annuities, as well as state and...
When it comes to retirement savings, Americans are falling short: Most families have little or nothing stashed away. That being said, some are more prepared than others, and the wealthiest Americans have significantly more in savings. According to the Economic Policy Institute (EPI), which looked at the state of American retirement in a 2016 report, the top one percent of families had $1.08 million or more stashed away in 2013. That's 216 times the median working-age family (50th percentile), which had...
Vice President of IMANI Africa, Bright Simons, is advising Social Security and National Insurance Trust (SSNIT) to urgently change its investment strategies it is to see a turnaround from its current bleak standing. Speaking on Eyewitness News, Mr. Simons noted that about half of the money SSNIT has invested is generating negative returns. “When you look at how much SSNIT invests and the mechanisms through which it invests, you have to start becoming very worried. No wonder SSNIT itself says that...
Switzerland’s ageing population is the most serious issue facing the country today, followed by inequality and climate change, according to Swiss millennials who took part in a survey conducted by the World Economic Forum’s (WEF) Global Shapers community. Around 63% of Swiss people aged 18-35 believe the ageing population is the most serious problem affecting the small alpine nation right now, followed by inequality (51%), climate change (38%) and loss of privacy (34%), the WEF reported on Monday. The third edition...
I recently attended a board meeting of an independent financial advisor, and the following graph was included in the board pack: The Asisa average for SA Multi Asset High Equity funds over the last 12.5 years makes for interesting reading. This particular category in the Collective Investment Scheme (CIS) space averaged 363.3, which means that if a R100 was invested on December 31, 2004, a client would see an amount of R363.30 returned to him on the June 30, 2017, that...
