Share this Mister Wong Digg Del.icio.us Slashdot Furl Yahoo Technorati Newsvine Googlize this Blinklist Facebook Wikio Hear this text Print E-mail

Some very sobering statistics on the financial status of most people in retirement appeared in a recent weekly communiqué of Silke Financial services. After stating off with a polite “I hope that this communiqué finds you well and with the ‘SARS’ bitter malady behind you,” the communique goes on to say that “now, that you are feeling pretty good with yourself, a person can find time to sort out other pressing engagements like financial planning,” and then hits with some very sobering facts.

Of the working people who have reached retirement age of 65:

• 47% are dependant on relatives;
• 31% are forced to continue working or take up second careers;
• 16% are dependant on a state pension — a mere R820 per month; and
• Only 6% are financially independent.

It then goes on to pose the questions:

• Which category do you fall into? and
• What should you be looking out for?

To start with — when looking for someone to manage your financial planning, you had better from the offset feel comfortable with this person looking back at you. Remember, financial planning is a process and not an event. (Something like the magnificent Ama Boko Boko victory, though, is definitely a major event to feel comfortable with. Congratulations boys, men.)

To put it simply:

• Truth, transparency and honesty are some of the most important factors in choosing an investment advisor.
• You should be brutally honest about your complete financial situation and goals.
• Confidentiality is key — insist on signing a confidentiality agreement.
• Question until you understand fully. Simply trusting your advisor is doing them a disservice since if you are unhappy later because you didn’t understand, it hurts everyone. Look for a contract.
• A good advisor wants to teach you. They want you both to share a common understanding. This is how they add value, and it’s their job.
• Advisors should always disclose their fees and commissions to you. There is nothing wrong with them getting paid, this is how they feed their family, but you should question if there are lower cost or commission options available for every decision you make.
• Finally, if you ever feel funny about something, or begin to even slightly doubt your advisor’s integrity, find another.
• Your first duty is to protect your family and assets, and diligence is the price you pay.

(Silke Financial Services can be visited at www.silke.co.za. If you have any queries regarding the above commentary please contact them on 021 683 3380 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .)

Write comment

Your Contact Details:

Name:

Email: do not notifynotify

Comment:

Title:

Message:

Security

Please input the anti-spam code that you can read in the image.