The Wealth Perspective - Third Quarter 2024

Welcome to the Latest Edition of The Wealth Perspective

The weather is getting warmer and flowers are starting to bloom – there is certainly a sense that change is in the air. The season of change extends to the economic front as well: our Government of National Unity has now been in place for three months, and there are signs of shifts in market sentiment following this.

Spring is a time of year we often associate with renewal and growth in general, and whilst there is definitely positivity in this sentiment, such movements are – in the main – driven by actions. When it comes to our finances, for example, giving the green shoots of investments the best chance of blossoming into fruition is dependent on doing regular financial ‘spring-cleaning’ and dusting off any proverbial cobwebs from outdated plans.

 

The Only Constant is Change

The Greek philosopher Heraclitus is credited with the idea that the only constant in life is change. This is a relevant observation in the realm of financial planning, as the fruits you are looking to achieve from your investments will change as you enter new seasons of your life. This is something that Haydn touches on in his article on Holistic financial solutions for a dynamic investment environment.

Change is not only applicable to personal circumstances and product choices, but to the market and legislative landscapes as well. A recent development in legislation governing retirement savings in South Africa that came into effect on 1 September 2024 is the introduction of the ‘two-pot’ retirement system.

This has numerous implications for members of retirement funds, as Linda explains in her article on the Legislative changes to retirement products.

 

Planting the Seeds for Future Generations

Having recently celebrated Heritage Day in South Africa, we are not only reminded of the heritage passed down to us, but also prompted to think about the legacy we will leave for future generations.This includes the financial values you pass down to your loved ones, as Robyn explores in her article,” The importance of sticking to your financial plan”.

 If you truly want to create generational wealth, it is essential that you pass down more than just money to your heirs.

 

Proudly South African

As a proudly South African firm, we are cognisant of the unique local investment environment and remain committed to offering local solutions to empower our clients to realise wealth for generations to come. The complexities of the landscape may appear daunting initially, but our team of experts is on hand to support you on your investment journey.

I trust that you will enjoy this quarter’s edition and that the insights shared will help guide you in achieving your investment outcomes.

 

A word from our CIO - Adriaan Pask, Chief Investment Officer, PSG Wealth - Uncovering gems in the market landscape

Product insights - Linda Kleynscheldt: Head of Actuarial and Product, PSG Wealth - Legislative changes to retirement products

Investing and trading - Wendy Myers, Head of Securities, PSG Wealth - Considerations when deciding to trade locally or offshore

Estate matters - Mariska Redelinghuys, Legal Specialist: Advice, PSG Wealth - Spring-cleaning your estate plan

Quarterly insight - Haydn Johns, Head: PSG Life and PSG Invest, PSG Wealth - Holistic financial solutions for a dynamic investment environment

Financial planning - Robyn Laubscher, Advice and Product Specialist, PSG Wealth - The importance of sticking to your financial plan

 

Frequently Asked Questions (FAQs):

Why is it important to review your estate plan regularly? 

Mariska Redelinghuys highlights that regular estate plan reviews are essential to ensure your financial legacy aligns with changes in your personal circumstances and evolving legal frameworks.

 

What is the significance of "financial spring-cleaning"? 

Financial ‘spring-cleaning’ refers to the process of revisiting and updating investment strategies and plans to align with new financial goals and market conditions, ensuring optimal growth and performance.

 

Why should investors consider local investment solutions? 

The Wealth Perspective emphasises that local investment solutions can be tailored to the unique South African market, helping investors achieve long-term wealth creation while navigating the complexities of the local landscape.