Fear of buy­ing…

Finweek English Edition - - LETTERS -

DEAR VIC, I re­fer to your re­port head­lined “Buy­ing shares your­self” (17 March). Be­ing at the age of 67 with no pen­sion in­come when I re­tire (see ex­pla­na­tion be­low) I’ve been sav­ing for the past six years and have ac­cu­mu­lated an amount of R478 000, which at present is in a money mar­ket ac­count earn­ing very lit­tle in­ter­est. But I con­trib­ute to it ev­ery month by way of a stop or­der to con­tinue build­ing it up (so I don’t rely on in­ter­est only). The amount is grow­ing steadily – but slowly.

Would you rec­om­mend I look at buy­ing shares at this time of my life as this is all I have, be­sides the R123 000 pen­sion (see be­low), I’ve saved for re­tire­ment? The rea­son I haven’t in­dulged in shares or the JSE is the fear of los­ing, as there al­ways re­mains a risk and I have no ex­pe­ri­ence with stocks, shares, bonds, etc. And I couldn’t trust any stock­bro­ker to do this on my be­half, as the fraud, corruption and em­bez­zle­ment to­day is rife, with so many older peo­ple be­ing ripped off of their sav­ings and in­come.

The rea­son for no pen­sion in­come: I was em­ployed for 10 years at a com­pany and it made a bad in­vest­ment with my pen­sion. And when I wanted to in­ter­vene in it I was po­litely told “it’s be­ing man­aged, so you have no need to worry about it” and also got stroppy and in­di­cated to me to keep my nose out of it. There was an amount of R32 000 when I was re­trenched!

The sec­ond mishap was that I got di­vorced shortly af­ter this. In terms of my di­vorce agree­ment, my hus­band laid claim to half of it, which was R16 000. Four years ago he called for that amount to be paid to him, plus in­ter­est. I had to pay him R28 000. I never drew that pen­sion money when I got re­trenched and there’s now an amount of R123 000 in a preser­va­tion fund at present, also grow­ing at a very slow rate as I opted for a low-risk pro­file. What can I do with R123 000 now? (Bet­ter than noth­ing, any­way!)

So I do have more than R100 000 and more to own a share ac­count. BUT at my age and in my cir­cum­stances with­out any knowl­edge in the JSE I don’t think so. Or can you throw some light at the end of the tun­nel for me and con­vince me other­wise?

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.