“The problem with socialism is that you eventually run out of other peoples’ money.” Margaret Thatcher
Everything is connected. For us to hope that personal finances are separate to public coffers, and that decisions made at a national caucus don’t impact conversations over a Nespresso cappuccino is to have our blinkers on and do our clients a dis-service.
Everything is connected, and our government knows this only too well. That’s why in an era of failing SOEs and bankrupt municipalities, our leadership has their eye on our collective R10.8 trillion in retirement funds.
All of this money is sitting in pensions, provident funds, living annuities, unit trusts, RAs and preservation funds.
Funds that belong to you, me and our clients.
SAIFAA, through our members, currently represents around 35 000 clients. We have an enormous responsibility to keep our blinkers hidden (in the bin) and help our clients have a voice against this devastating threat.
The ANC has stated their objective to implement Prescribed Assets. In a nutshell, this means that they will get to prescribe what we do with our assets. Most likely, it will only be a percentage, but it could be 30%, 60% or 90%.
Essentially, we will all lose (our clients included) control of how and where we invest our money for retirement.
ASISA has also spoken out against this threat and every investor, member of the public and voter should speak out against the high probability of this policy objective being signed into effect – no parliamentary discussion would be required, the ruling party can simply action it themselves with as little as a few hours notice.
WHAT SHOULD WE DO?
- Inform your clients (let us know if you need help with this)
- Encourage every single client to email the chairperson of the Board of Trustees for their relevant funds
Change starts with us. We can change the way our futures are shaped.
At SAIFAA – we’re up for the adventure.