Personal Finance & Investment coach💰 👨🏽🏫
|| Journey to Financial Freedom 🤑💰
|| Intentionality Wins The Day 🎯
Nov 26, 2021
Hardly a year passes with regulation 28 products, and their associated returns, ever coming into the spotlight for some criticism.
They definitely aren't my favourite, but there is definitely an investment case for privileged in a highly unequal society like SA
"I hate Reg 28 investment products, but not enough to give up the juicy tax rebate I get, so I'll just keep complaining about the allocations and the bad returns" most Reg 28 detractors.
The places you go, the times you go, your actions at that place. The people you hang around, drinking & driving, driving in the rain, driving at night, exceeding the speed limit, jogging, things u post & say, your diet & exercise habits. The list goes on. They all contain risk
We often wake up to horrible stomach-churning headlines where sometimes, some risk management could have resulted in an entirely different outcome
Of course,there is always a level of risk that cannot be eliminated. This is called systematic risk, and will always be present.
Exercise managing your risks. In your life, work, finances, investments. The management of risk is often ignored, yet crucial if you are 2 obtain outcomes anywhere close to what u desire, with a bit more certainty, as opposed to luck
Had a conversation with a colleague yesterday
They travelled in a shuttle to the year end function. She said "what if the worst happened? An accident. With the entire department in one vehicle". Really got me thinking about how as humans we generally tend to take things for granted.
The true test of any investment strategy is whether you remain true to your strategy regardless of the environment you are investing in.
The tricky thing about any tax advantaged account(retirement funds and TFSAs) is that you often have to bend from your true strategy to take full advantage of the tax benefits, so it's basically crossroad after crossroad after crossroad.
ETF101 - Always read the Minimum Disclosure Documents(MDD). They tell you what companies countries and sectors make up the ETF.
If you are thinking of adding a new ETF to your portfolio, compare that with what you already have, and see if adding the new ETF adds any real value..
Example 1: ETF issuers
The main issuers have global ETFs that track the "MSCI World Index", therefore holding more than 1 of the following offers no benefit (diversification or otherwise)
1nvest MSCI World
Satrix MSCI World
Sygnia Itrix MSCI World