However, with more reward comes more risk. There are many unit trusts out there that dont require a minimum period of investment - take a look at ABSA's site for some examples (i'm sure the other banks have the same).
You will find that it's not old mutual, but rather a scalely broker over selling an old mutual product. Those brokers are dodge. You can get a financial planner for free at nedbank, they just get commission based on what you go with, but it's declared and safer than those fly by night brokers that come visit.
Make sure he is an OM rep, check credentials get everything in writing and verify. Don't trust anyone these days. He should carry with him a official rep certificate from OM.
cANCer - "The problem with socialism is that eventually you run out of other people's money." -- Margaret Thatcher .
I'm ashamed of South Africa. It's an absolute disgrace that you can pass matric with a mark of 30 percent." - Jonathan Jansen
On another note, possibly the worst invesment a person can make is property. Rent property and invest the difference you would pay on a bond into the market and you will have bought your house cash way before you would have completed your bond payments(with interest). It also keeps your assets liquid.
Every time you invest your money in a bank remember they are investing ur money in the market, making a huge pofit and the paying you a very low guaranteed rate. That's not called "playing it safe" that's called being a sucker.
Check fees and costs. Compare to other investments with an independent broker across different companies. Don't tie in for 10 years, rather go with an "as and when" collective investment (unit trust). If you stop a 10 year investment you'll suffer penalties.
Old Mutual unit trusts are almost always a flexible product. You can withdraw with 10 days - 2 weeks notice leaving a minimum of 30% in the fund without penalty. So it's not like you can't touch your money for the full term. Thre;s products exist becaue they work. They are no a scam. People telling you they know better probably ought to reveal how they made their billions by going against age old investment advice and tecniques or STFU.
Last edited by baxter; 09-08-2012 at 03:34 PM.
The reason they did this was that brokers were chosing to sell long term endowment/saving policies to reap the higher commisions but what their cients really needed was a packaged unit trust offering with an incentive to go the term. It offers the best of both worlds. Unit trusts are only a high percentage investment and high yield investment if you at least go the medium term. Then the yields can easly match the 15-18% spoken about. Too many idiots sell up their unit trusts whe the market tanks, which is etirely the wrong thing to do. That's when you should be buying units so you can ride the up wave.
Last edited by baxter; 09-08-2012 at 03:46 PM.
OP is this what he tried to "sell" you ?
Just reading on the Old Mutual website and, if the product in question is their "investment plan", then this just sounds like a normal endowment from any other company...