just posted this comment on fin24: Aside from Govt employees, most people nowadays dont have pension funds. They have provident funds where you contribute to your own pot of money. This money is invested by the various investment houses, eg Allan Gray, Foord, etc. and overseen by the Funds trustees. You generally have a choice as to how you are invested, eg cash/bonds, moderate risk and high risk and you can choose at least once a year how you want your capital, and your contributions split between those options. Govt has no control over this money apart from legislating the tax aspect, eg what is deductible, what tax to pay on withdrawals, etc. Growth, in whatever form, within these funds accumulates tax-free. The only concern with these is that small funds are not able to use economies of scale where costs (admin, and life and disability assurance)are concerned. Umbrella funds have been suggested for lots of smaller employers, however employees may feel that they are not sufficiently represented in terms of the trustees for whom they vote. They may not even know enough about the trustees unlike with a larger employer who has its own fund. Read the full article:
Posted on: Sat, 18 Oct 2014 05:19:42 +0000
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