Thread by @iamkoshiek

there's a decent chance you're being hammered on your retirement annuity/ pension fund with excess fees

R100k growing at 6% each year for 25 years = R430k
the same R100k after 2% in fees = R260k

40% evaporated... just like that

currently look at fund sheets across SA asset managers & fuck, there are some people in this country with blood on their hands - consistently underperforming the market yet charging astronomical fees

it's January, it's a great time to get on top of this stuff & find out

- where is your money actually invested (local vs offshore)
- how much is the effective annual cost (EAC)?
- how has your fund performed against the benchmark AND the market?
- what are the costs to withdraw?

so you have a "high growth all equity offshore fund" that's barely generating 11% in a year the market cleared 30%?!

how is this even possible??

heart goes out to all the folks paying for alpha & getting beta out there - actually looking at some of the numbers, you're getting beta less 3%

even more criminal

here's the fucked up part - the benchmark for inflation is already skewed

so if you're clearing the official version of "CPI" it STILL isn't enough!! that's not a benchmark!

fees, taxes & REAL inflation mean you're really flatlining investment performance

there's this narrative that "smart" money is actually smart & honestly, it's costing plenty of people money every single day

there's an entire industry of money managers who are tasked to make from you & not for you

ultimately it's your cash - you decide whether you're funding a new porsche & a camps bay mansion for your fund manager or you're aggressive on

- fees
- expected returns
- knowing where your money is actually going

top of the list of shame?

@sanlam is hands down the worst culprit, looking at your fee adjusted performance I'd rather use Betway & go back in time to invest in Enron

dismal is a complete understatement

if you're chilling with a heavy % of your portfolio in cash on an investment fund over an extended period in a SA context you're already behind the eight ball

our inflation is an absolute monster

that's cash literally eroding in value every year

if you get a chance please review the active vs passive fund options - @PeensCFP & I had a long review on this recently, the fees to underperform in SA are insane

worth taking a serious look at passive funds longer run (unless you can afford @_Bayes_Theorem to manage your money)

if you don't know which pension fund your belong to or who manages your company fund, you're already in a bad space

another bad option is buying into a fund with a nice sounding name, now you're 25yo & overweight low yielding European bond exposure - it goes unchecked