27
June 2024
The Wealth Perspective - Second Quarter 2024
Etienne de Waal, Chief Executive Officer
PSG Wealth
In this edition of The Wealth Perspective, Chief Investment Officer Adriaan Pask looks at what young investors can learn from market history and Head of Sales Nirdev Desai examines the importance of having a disciplined approach to saving. Head of Securities Wendy Myers unpacks when to consider opening an equity portfolio and Legal Advice Specialist Mariska Redelinghuys explains how to get started with an estate plan. Head of PSG Life and PSG Invest Haydn Johns then explores the types of investment products that young people should be considering before Advice and Product Specialist Robyn Laubscher rounds off this quarter’s edition by detailing the benefits that a financial adviser can offer in helping investors reach their desired financial outcomes.
“ The famous American economist, professor and investor Benjamin Graham once said that ‘The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioural discipline that are likely to get you where you want to go'. ”
Welcome to the latest edition of The Wealth Perspective
This quarter’s publication comes hot on the heels of the election of a new national government, and the formation of a Government of National Unity, which has been met with a renewed sense of hope that positive changes are on the horizon. We also commemorated Youth Day this month – a day on which we reflect on the Soweto uprising and celebrate the role that young people play in our nation’s growth and development. Both events prompt us to reflect on the past and consider the lessons we can learn from our history so that we can move forward with confidence for a better future.
Lessons from the past
At PSG Wealth, we are mindful of the role that we play in helping investors achieve their desired financial outcomes and how this contributes to the future prosperity of our nation. South Africa is a nation that has historically had a poor culture of saving, and we need to examine the reasons for this trend if we are to change it and empower investors to make better financial decisions – particularly among younger generations – for, in the oft-quoted words of British statesman Winston Churchill, “those that fail to learn from history, are doomed to repeat it”.
As I touched on in the previous issue of this publication, a lack of financial literacy and access to financial services are two of the main barriers preventing South Africans from saving more effectively, and we are firmly committed to investing in our people, products and technology and to addressing these issues. These include an extensive network of financial advisers to assess and address investors’ financial needs, a proven range of multi-managed funds, and innovative offerings such as family pricing – which is particularly advantageous for younger members of a family who are just getting started on their savings journeys and seeks to encourage families to discuss savings and investments with the next generation.
Access to savings has been another factor that has caused some individuals to hesitate from investing, but the introduction of tax-free savings accounts (in 2015) and the two-pot retirement reform legislation (scheduled to take effect from 1 September this year) are examples of how Government is also intervening to address such concerns.
Time is one of an investor’s greatest assets
Finally, one of the greatest resources at an investor’s disposal is time. Not only does continued, disciplined saving allow one to accumulate more assets, but a longer investment horizon also allows investors to derive the most benefit from the power of compound interest and to counteract the effects of inflation. It’s important that investors are aware of these advantages from an early age so they can make an informed decision to start their investment journey as soon as possible and fully leverage the benefits of time.
Conclusion
The famous American economist, professor and investor Benjamin Graham once said that “The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioural discipline that are likely to get you where you want to go”.
I trust that you will find the insights of this quarter’s publication useful in helping you create (or refine) a holistic and robust financial plan to meet your financial needs.
- A word from our CIO - Adriaan Pask, Chief Investment Officer, PSG Wealth - What can young investors learn from market history?
- Industry views - Nirdev Desai, Head of Sales, PSG Wealth - Disciplined savers don’t have cheat days
- Investing and trading - Wendy Myers, Head of Securities, PSG Wealth - Is it too soon to consider an equity portfolio?
- Estate matters - Mariska Redelinghuys, Legal Specialist: Advice, PSG Wealth - Your estate plan shouldn’t be a headache
- Quarterly insight - Haydn Johns, Head: PSG Life and PSG Invest, PSG Wealth - The value of establishing robust investment foundations early on
- Financial planning - Robyn Laubscher, Advice and Product Specialist, PSG Wealth - The role of an adviser in financial planning
Click here to download the full edition of The Wealth Perspective
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