Seasons of wealth: navigating the modern family’s wealth management journey

Feel free to reach out to PSG Wealth Manager  Carina van Rooyen   directly.

Establishing a solid foundation

In the early years of marriage or starting a family, the main focus is often on building a stable financial foundation. During this stage, families are typically faced by debt, working on establishing careers, and possibly planning for a home or children.

• Financial responsibility

This stage calls for living within your means, understanding the importance of budgeting, and avoiding excessive debt. By practising disciplined spending and saving, a family can develop a sense of financial peace and reduce the risk of financial strain at later stages in life.

• Generosity and planning for the future

While savings and debt management are crucial, it is important to set aside resources for others and give back in small, thoughtful ways, which builds a spirit of gratitude and stewardship.

• Protection against the unknown

Start protecting your family against potential risks with appropriate health, home, and life insurance. These are tools that will ensure that your family is protected against unforeseen circumstances, allowing you to focus on long-term goals.

Expanding the family and growing wealth

At this stage, many families find themselves with increased responsibilities related to children and careers. The focus shifts to long-term financial goals such as buying a home, saving for children’s education, and growing wealth for the future.

• Long-term planning

Building wealth takes time and requires careful planning, patience, and wise decision-making. Families should prioritise long-term goals and avoid being swayed by short-term needs or obstacles.

• Importance of education

Providing children with access to education is an investment in their future and also a way to prepare them for a meaningful life. Savings through an investment vehicle like a voluntary investment or tax-free savings plan can be used for future education needs.

• Diversification and risk management

As wealth grows, it is important to have a balanced, long-term financial plan and to diversify investments – whether in property, local and offshore equities, or other assets. This approach helps to minimise risk and ensures that wealth grows steadily over time, aligned with the values and goals you have as a family unit.

Preparing for wealth transfer and building a legacy of thoughtful stewardship

As retirement approaches, families begin to shift their focus from accumulating and growing wealth to preserving it. This stage requires a strategic approach and is ideally planned well ahead of the actual date of retirement.

• Stewardship and preservation

In the later stages of life, managing wealth is about preservation. This involves not only maintaining investments but also protecting assets through estate planning and creating a legacy that will benefit future generations.

• Intentional giving

As wealth grows, there is an opportunity to create positive change by giving back to the community or helping others who may be in need. Thoughtful giving ensures that wealth is not just a personal asset, but also a means of positively impacting the world around you.

• Planning for care

Healthcare and long-term care should form part of your financial plan. Ensuring that adequate resources are in place for medical care allows for a dignified transition into retirement.

Retirement: enjoying the fruits of your labour

Retirement is a time of reflection, relaxation, and enjoyment, but also requires a strategic approach to ensure that the wealth you have accumulated can last through the later years of life.

• Wise spending and enjoyment

Retirement is a time to enjoy the rewards of lifelong hard work, but also a time to be mindful of how the wealth you have accumulated is used. Thoughtful spending ensures that retirement can be enjoyed without financial stress.

• Health and wellness

As the years progress, managing health often becomes a greater focus than before. Sufficient resources for healthcare ensure that retirement can be enjoyed without unnecessary concerns.

• Legacy and impact

Planning how you want your wealth to impact and be transferred to the next generation is an important aspect of financial planning. This may involve setting up trusts or other financial vehicles where appropriate, to ensure that your children and grandchildren are provided for, and that your values are passed on. For most people, it is important to know that their wealth will continue to have a lasting, positive influence on others.

Wealth management for the modern family creates a foundation that supports financial security and wellbeing and also strengthens family values – if guided by principles of responsibility, patience, and generosity. Building wealth should be viewed as a tool for personal growth, and for the wellbeing of others.

The journey of wealth management for the modern family is a call to stewardship – of resources, relationships, and values. With a thoughtful approach and wealth management plan, families can build a financially secure and personally fulfilling wealth management journey.