But immorality and self-enrichment are not just about corruption. There is a grey and murky continuum that starts, long before it becomes illegal, with greed and opportunism.
The investment industry is an example. Many people are unwittingly incurring a similarly destructive compounded cost privately, sacrificing their future prosperity for others’ immediate gain. They have done this for generations by accepting the high charges the retirement industry extracts from their savings, which generate enormous rewards for the industry at the expense of everyman’s future retirement income. When they retire, when it’s too late, investors are left to contemplate what might have been.
Positives that have come out of state capture are our collective anger, the way the media has fearlessly pursued and exposed culprits, and heightened public awareness about right and wrong, about embracing what serves and rejecting what doesn’t.
This heightened awareness and a blossoming sense of activism must surely raise our country’s ethical bar in many spheres, including corporate levels of transparency and accountability. We would welcome this. Ten years ago, then Finance Minister Trevor Manuel blasted the retirement industry for “living off the fat of the land for far too long”. That has yet to change. Investors still suffer the effects of high fees, excessive complexity and obscure disclosure, and are poorer for it.
They, too, must become more aware. The industry will only truly transform once investors vote with their savings.
At 10X, we endeavour to raise awareness, in the belief that informed investors make better decisions and achieve better outcomes. This is one of the reasons we associated ourselves with the Business Times Money Guides, which provide a comprehensive overview of what you need to know to give yourself the best possible chance of retiring comfortably.
