Pensions for Palookas

By Brett Ladouce

What are the stupid questions you are afraid to ask when it comes to your retirement planning? What are the things you think you are supposed to know and be comfortable with when it comes to your retirement fund? If you look back over the span of your career, what are the things you would have done differently to make better provisions for your retirement?
Pensions for Palookas is written as a conversation starter. It provides readers with a better understanding of how their retirement fund works and the things they need to be aware of when constructing a retirement plan. This book is not meant to replace the sound advice of a skilled financial advisor, but is rather meant to help readers prepare for the conversations they will have with their advisors and other stakeholders in crafting a retirement plan that best suits their tailored needs and wants.

The goal of Pensions for Palookas is to assist readers to take control of their retirement planning today by equipping them with the knowledge to ask the right questions when consulting with fund trustees, principal officers, the HR department of employers and financial advisors.

You control your retirement destiny and you owe it to yourself to put yourself in the best position to make informed decisions regarding your retirement plan.

• Language: English
• Publisher: Brett Ladouce
• Release date: Jun 3, 2022
• ISBN: 9781005487393

Book preview

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Copyright © 2021 Adv. Brett Ladoucé

Published by Adv. Brett Ladoucé Publishing at Smashwords

First edition 2021

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage or retrieval system without permission from the copyright holder.

The Author has made every effort to trace and acknowledge sources/resources/individuals. In the event that any images or information have been incorrectly attributed or credited, the Author will be pleased to rectify these omissions at the earliest opportunity.

This book is written with the intention of providing the reader with information that will lead to a better understanding of retirement funds. It is not intended to provide or to replace sound financial advice. Readers are encouraged throughout this book to seek financial advice from an authorised financial services provider before making any decisions in regard to their retirement planning.

Published by Adv. Brett Ladoucé using Reach Publishers’ services,

Edited by Gerard Peter for Reach Publishers

Cover designed by Reach Publishers

P O Box 1384, Wandsbeck, South Africa, 3631

Website: www.reachpublishers.org

E-mail: [e-mail]

Foreword

During the 30 years that I spent in the retirement fund industry as a legal adviser and as a trustee of a number of retirement funds, I was often surprised by the lack of interest that some fund members showed with regard to their fund membership. For many of these members their fund savings will be their major source of income when they retire one day.

Although a number of textbooks have been published with regard to retirement funds, there seems to be a need for a basic overview of the nature and implications of retirement fund membership, which is written in plain language and therefore understandable by the average fund member.

Pensions for Palookas addresses this need as it is indeed written in plain language, using a relaxed and informal style which should be within the grasp of most retirement fund members.

Brett was one of the long-standing members of the pension law team I managed before I retired at the end of 2020, having spent 30 years of my legal career in the retirement fund industry. Brett has extensive knowledge of the financial industry, especially relating to the legal principles governing retirement funds.

Pensions for Palookas should provide any retirement fund member, especially members of occupational pension and provident funds, with a basic understanding of the nature and mechanics of their fund, including the importance of contributing sufficiently from early on in one’s career towards retirement savings. The book should also assist members who have investment or other options under their fund before, at or after retirement, to make informed and wise decisions with the assistance of their financial advisers.

Anton Swanepoel

Young professionals should know, at an early age, that someday in the future, their lack of financial education and financial security will negatively impact their lifestyle.

Often times, too many of them get their priorities wrong. They carelessly allow their need for instant gratification, such as the ‘unconsidered’ acquisitions of shiny toys, to supersede their need for financial independence.

If you are a young professional reading this foreword and you find yourself agreeing with my sentiments thus far, then Pensions for Palookas is for you.

This book is about one thing: A good, professional guide to enable young professionals to make informed choices and take timely actions to achieve financial independence. It contains all the tools you need to plan and invest for retirement.

Young professionals need to stop thinking it’s all right to be ignorant about financial security and to drown in expensive debt. While we are still in this world, we have an obligation to ensure our own well-being. This will be made possible by our ability to save for our retirement and to acquire appreciating assets, such as a home and long-term investments.

How you earn money, how much money you earn, how you spend your money, and most importantly, how much of your money you save, are all important considerations to help you build your wealth, graduate from a pay cheque attitude, embrace a net worth mentality, achieve financial independence and enjoy your pension.

Brett Ladoucé is an insurance lawyer with a conscience and a human heart. He is a teacher to the underdogs. He is passionate about knowledge sharing for shared prosperity. He is a budding author with the desire to develop professionals with a net worth mentality.

You may be a young professional in the doldrums right now. But remember, it doesn’t have to be that way. Make Pensions for Palookas your companion and enjoy a new you.

Mpumelelo Ncwadi

According to the South African National Treasury, Only 6% of the country’s population is on track to retire comfortably, a consequence of a savings rate in South Africa acknowledged as being one of the lowest in the world. There is no lack of options available to the public as South Africa has a well established and sophisticated retirement savings industry offering a variety of savings products with comprehensive benefits. Navigating this industry is straightforward for the accomplished financial services professional but for the layman looking to save for retirement, it represents a daunting and often insurmountable challenge.

Pensions for Palookas empowers individuals with the knowledge to understand this environment, by unpacking technical products, explaining industry jargon and providing insights into investment classes, relevant legislation and associated risks.

It is a comprehensive and practical reference allowing the reader to source all the information required achieving sound financial outcomes in one place. This book must be read more than once and will be a continuous and invaluable aid to decision making in the journey to attaining financial security and independence later in life.

Vusumuzi Nondo

Introduction

Recently, a young man of about 25 years was appointed in my department. He reminded me of myself 21 years earlier. I was young, educated, carefree with a nice job at a leading company and a bright future ahead of me. It seemed like my timing was perfect as the economic opportunities that were on offer to me in our young democracy seemed boundless. Opportunities would lead to money earned and money earned would lead to the opportunity to create wealth to a much greater extent than my parents could ever have imagined. I would become part of a generation that could accumulate wealth and not just earn enough to get by from day to day.

Looking at the wealth of knowledge, insight, made