Telling tales about what is le­gal

Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

It is amaz­ing how many so-called fi­nan­cial ad­vis­ers sim­ply lie. For many years, un­scrupu­lous ad­vis­ers claimed (and some still do) that you have to take out a re­tire­ment an­nu­ity (RA) un­til the age of 55.

But this is not true. Tax leg­is­la­tion states that you can­not ma­ture an RA be­fore the age of 55, so what you have in­vested must stay in­vested un­til then.

How­ever, you can pay con­tri­bu­tions for any pe­riod you wish.

Then, in an email from a reader, I came across a new lie. The reader was dis­sat­is­fied with the ad­vice she had re­ceived from a fi­nan­cial ad­viser; in fact, the reader felt that his ad­vice was so bad that he should re­pay the com­mis­sion. The ad­viser’s re­sponse was that it is il­le­gal to re­pay com­mis­sions.

I am sure the fi­nan­cial ad­vice om­bud, Nol­untu Bam, would like to hear that her de­ter­mi­na­tions or­der­ing er­rant fi­nan­cial ad­vis­ers to com­pen­sate con­sumers for losses are prob­a­bly also il­le­gal in the eyes of this un­scrupu­lous ad­viser!

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