I’m retiring, but our work is nowhere near finished

am writing this column – with my grandson trying to assist – in The Hague, the Netherlands, in an apartment that overlooks the Peace Palace, otherwise known as the seat of international law, because it houses the International Court of Justice. Seeing the world is part of my adjustment to retirement.

This is the last column I will write as the editor of Personal Finance.

It is almost 17 years since Personal Finance was launched, with the admonition that I had to prove that the publication would work within eight weeks.

The first week was a bit of a disaster, because we were using new technology and there were no advertising sales. But within those first eight weeks, Personal Finance proved itself and survived.

In the intervening 17 years, Personal Finance has become an influential publication, read not only by ordinary investors and their financial advisers, but also by executives in the financial services industry, regulators and policymakers.

Research has shown that, after the sport section, Personal Finance is the best read section in Independent Newspapers’ four Saturday publications: the Saturday Star, the Weekend Argus, The Independent on Saturday and the Pretoria News Weekend.

IMAKING ENEMIES

Many people in the financial services industry have not liked what we have written over the years, particularly when we have exposed shoddy and even unlawful practices.

However, many of the issues that we have highlighted have contributed to changes in legislation, regulation and practices that, we hope, have provided you with better value for your money and more protection against the unscrupulous.

We have been threatened many a time by bombastic lawyers acting – more with bluster than on legal principle – on behalf of the people or institutions we were questioning. We have been subjected to unsuccessful smear and intimidation campaigns that have been both general and personal in nature.

What the unscrupulous fail to realise is that only by having a trusted financial services system will people save and build personal wealth. This will produce a stronger economy, which will create a more stable society and a brighter future for our children and grandchildren.

Those who build their wealth on the blatant exploitation of other people, particularly the poor and the vulnerable, such as pensioners, are undermining everyone’s future.

The main objective of Personal Finance has been to educate you, the consumer. The financial services industry and its products are complicated and extensive, and yet they are vital for the financial wellbeing of every citizen.

It is only by having a basic knowledge of what products are available and which ones are appropriate that ordinary people can benefit fully from what is on offer, be it an investment or a risk assurance policy that will financially protect dependants in the event of the death of a breadwinner.

This knowledge is essential. Using a financial services product is not like buying a motor vehicle. If there is something wrong with a motor vehicle, you will find out about it fairly quickly; this is not the case with a financial product. For example, if the costs of an investment product are too high, you may never achieve your objective of a financially secure retirement. You may find this out only in retirement, when it will be too late to do anything about it.

If the premium escalation rate of a risk assurance policy is excessive, you may well find that you can no longer afford the premiums 20 years down the line, when you and your dependants most need the cover. And by that stage your health may not be what it was 20 years ago, in which case you will not be able to switch to a more affordable policy.

MUCH REMAINS TO BE DONE

I go into formal retirement at the age of 65 proud of what Personal Finance has contributed to consumer education and the changes for good in the financial services industry. But I also retire knowing that the job is nowhere near complete.

There are still too many unacceptable practices; there are still too many greedy and unscrupulous crooks; and there are still too many consumers who do not accept responsibility for their financial decisions. And sadly, there are consumers who often do not make any decisions because they are afraid of the industry.

Personal Finance will continue to play a critical role in educating readers while constructively criticising the industry when required.

Let me say emphatically that the vast majority of people in the financial services industry, be they financial advisers/ planners or company executives, do prioritise your interests as a consumer.

Unfortunately, there are a few who place selfish greed and/or profits first, seeing consumers as mere saps to be exploited.

The avaricious do their best to confuse and mislead consumers; they do not avoid conflicts of interest when they should; and they have little conscience. The problem is that the few give the rest of the industry a bad name.

I have met many very honourable and concerned people in the industry who have influenced the content of Personal Finance over the past 17 years. There are far too many to name. They know who they are, and I appreciate the role they have played. The skunks also know who they are – and they should know that, increasingly, their days are numbered as legislation and regulation improves.

I must also thank the many outstanding journalists who have worked for Personal Finance over the past 17 years; without their knowledge and expertise, Personal Finance would not be what it is today.

The only colleague whom I will mention by name is Laura du Preez, who has been acting editor of Personal Finance for the past six months while I have been on a busman’s holiday, writing but not editing.

I hand over to someone who is quietly determined and well qualified. Laura has

a Certified Financial Planner accreditation from the Financial Planning Institute. She also writes the healthcare chapter of the Financial Planning Handbook. Laura is eminently qualified to take over the reins.

I must publicly thank the former chief executive of Independent Newspapers, Ivan Fallon, for allowing me to embark on this 17-year adventure. I express my appreciation to both him and the current chief executive, Tony Howard, for the support and backing they have provided, often under trying circumstances, without ever attempting to dictate or interfere in the editorial policy of Personal Finance.

IT’S ALL ABOUT YOU

My final thanks go to you, our readers. We have been here because of you. If we had not been doing our job of providing you with useful information, I doubt Personal Finance would have survived.

I will not be disappearing altogether. I will continue to be associated with Personal Finance, mainly in a writing capacity. I remain deeply committed to the objectives of Personal Finance – most importantly, placing the reasonable aspirations of the users of financial products above all else.