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Category Life Insurance

Investment myths fuel low savings in South Africa

28 February 2018 Shirley Smith, Old Mutual
Shirley Smith, Chief Operating Officer of the Old Mutual Money Account.

Shirley Smith, Chief Operating Officer of the Old Mutual Money Account.

Only 12% of metro working households in South Africa make use of an investment policy, and savings levels of working South Africans remain dangerously low at 15%*.

This is according to Shirley Smith, Chief Operating Officer of the Old Mutual Money Account, who explains that misconceptions result in many South Africans believing that they do not have the know-how or disposable income to invest. Some of the top investment related myths include “I don’t know how to invest” and “I can’t afford to invest”, false beliefs based on self-doubt.

Well-known local actor, filmmaker, producer and recipient of the 2017 Youth Achiever Award, Thapelo Mokoena, recently embarked on his own personal journey to dispel common investment myths.

“Like many other South Africans, I believed in investment related myths that hindered me from investing. I used to think that to be able to invest, I had to be rich and understand the workings of the various investment products available. However, with the correct information and tools, I discovered investing is accessible, not very complicated, and a great way to save for the future,” explains Mokoena.

Bad habits also play a role in South Africa’s poor savings rate, adds Smith. “South Africans aspire to be wealthy, but often prefer buying things that provide instant gratification to saving and investing. That’s why a tool such as the Old Mutual Money Account is so suitable. As a transactional bank account that allows you to invest whenever you swipe, it enables you to take control of your financial future, even while you spend.”

Mokoena says his experience with the Old Mutual Money Account has completely changed the way he thinks about investing.

On his journey he discovered that an investment tool like the Money Account allows you to invest without giving up your current lifestyle. “The Money Account allows South Africans to swipe their way to a brighter future. Every time you swipe your card, a percentage of that sale will be invested in a unit trust. Not only is it a flexible way to invest, but it provides total instant access to your investment.”

“It was phenomenal,” says Mokoena. “This is a radically different approach to banking and investing in the country and makes it possible for everyday South Africans to invest every time they swipe their card. It helped me understand the importance of saving and how easy it can be.”

Previously he was confused by the many investment options available, and believed you needed to conduct extensive research to truly evaluate all the options available. “After opening my Money Account I started seeing how my money could start working for me. An added bonus of the account is that it empowers me with control over my investments and I feel like I have more say in what happens with my money,” says Mokoena.

When it comes to your future financial wellbeing, there should be no regrets, stresses Mokoena. “It is now easier than ever to invest, and as a nation, we must go out of our way to understand what our hard-earned money can do for us. Adequate information is key, especially for the layman. It is essential to start now, and never look back. Aluta Continua!” he says.

For more information, visit your nearest Old Mutual branch or contact your financial adviser. Ts & Cs apply. Visit www.moneyaccount.co.za

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South Africa went to Davos to pitch itself as an investor-friendly destination, then signed an Expropriation Act. What message does this send to global investors?

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Invest at your peril
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