Financial planning and peace of mind

Feel free to reach out to PSG Wealth Manager Hennie Fourie directly. 

Research has shown that some of the things clients want and expect from a financial adviser are:

• A wide range of credible investment solutions
• A proactive adviser with good ideas and advice
• An adviser who is interested in the client, not the client’s money
• Being involved in the decision-making process, establishing a partnership between the client and the adviser
• A reliable adviser supported by a team of experts
• A family office taking care of all the financial needs of the entire family
• A simple and an easy-to-understand picture of the client’s total wealth
• Value added to the fee paid.

At PSG Wealth Pretoria East, we believe the above are the cornerstones of our office and the principles we have applied for years and years. Our office comprises over 80 knowledgeable people enabling us to meet these needs.

PSG Wealth Pretoria East’s investment philosophy and strategy

We follow a simple and an easy-to-understand investment philosophy that has been tested and works in both favourable and unfavourable market conditions. We split investment capital into three different investment pools, each with its own set of goals – either short-, medium- or long-term goals or a combination of the three. Clients’ financial needs change over time, so it is important to have a ‘living’ financial plan that is flexible and readily adaptable as circumstances change.

We also do analyses for people prior to retirement, to determine whether they are on target to achieve their retirement goals. If not, the calculation will indicate how much extra they need to save per month to reach their goal. For already retired clients, we do cash flow projections to determine whether the investor’s capital will last at least until age 90. Post-retirement cash flow projections are crucial and should be done at least once a year to provide clients with a picture of their financial position. Starting to plan early will help establish whether a client should save more or might have to work longer before they retire. Or, if the client has already retired, they might have to manage their expenses more closely if so indicated by the analysis.

Financial solutions achieving their respective targets

We follow a multi-management approach with our solutions – our fund of funds structure consists of a ‘basket’ of high-quality fund managers, leading to further diversification and risk spreading. We are all familiar with the adage ‘Don’t put all your eggs in one basket.’ This is so true, and through our multi-management approach, we apply this to our solutions for clients. The funds are packaged in a cost- and tax-efficient product available for use by retirement funds as well as discretionary investment portfolios.

Below we illustrate the importance of gaining exposure to various fund managers. Taking 5 of the top local equity fund managers, I ranked their annual performance over the last 10 years, from worst to best. It shows how volatile the performance of the various fund managers is from year to year. Look at the volatile performance of Fund 2 in particular. We often see that investors take a look at the previous year’s winner and then invest their money in that fund without doing their homework. And then they don’t understand why the fund underperforms in the next year. Of course, the reverse applies too, where a fund which underperforms in one year should not necessarily be ignored. PSG Wealth has an investment committee that is responsible for selecting the right ‘basket’ of fund managers within our solutions. This task involves a lot of work and research and a wide range of aspects are investigated prior to including a fund manager with our solutions.

Combining a sound financial plan that is well managed and reviewed on a regular basis, with a set of solutions ranging from conservative to aggressive, is the key to achieving peace of mind in today’s volatile and unpredictable investment markets.