IT WAS INTERESTING to read I’m not the only one stuck with this problem. The account for my 3G is around R250/month. In November 2008 I received an account for R1 500; and then in December one arrived for R3 500. Just like Jason Myhill (Letters, 22 January) I’ve had no co-operation from MTN – many calls, pleas, complaints on “Hello, Peter” are all simply ignored. When I insisted on speaking to a manager I was told MTN’s managers don’t take calls. And even team leaders refuse to deal with calls.
Though I have several accounts with MTN, clearly my contribution to their profits isn’t enough to warrant attention. I can’t even get a detailed account from them. It’s clear MTN is totally inefficient in providing clients with service or protecting them from crime. I can’t help wondering whether there’s fraud going on at MTN. invest subsequent to the market crash in October 2008, I’ve been following the markets eagerly (financial magazines, newspapers, radio talk shows, etc.) trying to get a basic understanding of what the hell is going on. Very interestingly, not all the economists/ stockbroking firms agree about how long the current recession will continue or when the turnaround will begin. The worst-case scenario put forward so far is that the recovery will only occur in 2012.
All the broking firms keep telling investors now is a good time to buy. Share prices are low and good value can be found. All the broking firms also have the following in common: “Keeping your money in an interest-bearing investment now isn’t wise. Three things count against you in doing so: interest rates are coming down; tax on the interest earned reduces your benefit even further; and the impact of inflation erodes your investment over time.”
Attached is an oversimplified calculation of my own comparing shares and interest. I don’t have all the facts as to what the broking firms actually do (how much administration charges, etc, do they ask). The attachment has three sheets: My assumptions in doing the calculation; investment in shares; and investment in an interest-earning deposit.
I need to repeat these assumptions are oversimplified. Bearing that in mind, due to the value lost in administration costs/commission paid to the broking firms it appears as though it’s beneficial to leave your money in an interest-earning investment. I’ve learnt this so far from following
the broking firms advise investorstors tors to buy while good value can be found. advise investors to buy before it’s too late. Share in the euphoria while it lasts! broking firms advise investors to buy. The only conclusion I can reach for that advice is this: they need Joe Average to invest, otherwise they don’t earn any new/further commission. Are we being bullshitted? My conclusion: First, Joe Average, who has a basic understanding of how the markets work, should do his own investing.
Second, Joe Average, who has zero understanding of the markets, should just leave his money in the highest interest-earning vessel available.