Sanlam Intelligence – Institutional Financial News
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7 Aug 2015anemptytextllineBehavioural finance is a new area of financial research that explores the psychological factors affecting investment decisions. The fundamental basis of behavioural finance is that investors are not rational, they are prone to cognitive and behavioural biases. These psychological factors affect investment decisions, distorting information and causing investors to reach incorrect conclusions even if the information is correct. Whether we are active members, pension fund trustees or asset consultants, we are all prone to the same biases and decision-making foibles, says Andrew Rumbelow, Segment Head: Institutional Business at Sanlam Investments. -
12 Aug 2015anemptytextllineIt has been well documented that the average retiree has not saved enough to maintain his/her lifestyle after retirement, and many will exhaust their funds altogether.
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12 Aug 2015anemptytextllineOne of the most significant market trends across the globe is the continuing increase in human longevity.
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12 Aug 2015anemptytextllineWith the switch from defined benefit to defined contribution funds, the responsibility falls on retirement fund members to ensure they save enough money to provide a decent income for themselves in retirement.
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12 Aug 2015anemptytextllineRetirement fund members are often split between two extremes – the ‘dreamers’ and the ‘market timers’.
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12 Aug 2015anemptytextlline“Risk comes from not knowing that you're doing.” - Warren Buffet
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12 Aug 2015anemptytextllineThe introduction of phased retirement in the 2014 Taxation Laws Amendment Act was excellent news for retirement fund members. When we called for these regulatory changes early in 2014, we did not expect the Government to respond so quickly.
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12 Aug 2015anemptytextllineRetirement is often referred to as the “golden years”. These days, the golden years have become longer – statistics show that on average, men aged 60 will live for another 18 years while women aged 60 are likely to live another 21 years.
