Welcome to the latest edition of The Wealth Perspective

The Collins English Dictionary Word of the Year for 2022 is ‘permacrisis’, which describes an extended period of instability and insecurity – especially one resulting from a series of catastrophic events. Although this year seems to have flown by, I think it’s safe to say it wasn’t without its fair share of challenges – from the Ukraine invasion by Russia to the global inflation surge coupled with soaring interest rates, and from the currency crisis and the remnants of the Covid-19 pandemic to the global energy crisis driven by oil.

Global markets for the most part reflected the capricious nature of this situation whilst, on the local front, the Eskom crisis reached new levels of distress. Indeed, the term permacrisis perfectly embodies this year’s dizzying sense of stumbling from one unprecedented event to another, as we wondered bleakly what new crisis might lie around the corner.

Tenacity in the face of adversity

I have been inspired by ordinary South Africans’ fierce determination to continue to push forward and fight their way back in the right direction – despite having so much thrown their way. It’s been gratifying to see malls bustling again, stadiums slowly filling up and retail spend statistics display a positive trajectory. This is the spirit of this country I celebrate and appreciate, because it demonstrates that for the people of our nation, giving up is not an option.

So this Christmas season, despite loadshedding, won’t be the worst we’ve ever had. For starters, beverage options are not limited to your own concoctions this time around, the beaches and outdoor events are open, and I’m sure many of us looking forward to paying them a visit.  

Looking to the future 

Relaxing and enjoying yourself over the festive season shouldn’t come at the expense of your financial plan. Although there is a temptation to overspend at this time of the year, it is generally considered prudent to rather use a portion of your savings – and bonus if you are fortunate enough to receive one – to pursue long-term goals, such as retirement. Individuals’ financial situations differ but, with a little planning, it is possible to invest some of these funds and benefit even more from them in the future. 

Your hard-earned year-end bonus should be invested wisely, which is why I’ve rounded up the best and most experienced professionals around to help you put every cent to good use. It’s also important to make use of all the tax benefits available to you, so be tax savvy. Tax-efficient investments should be part of your holistic financial plan. 

Get started as soon as possible

Life, much like investment, is a game of incremental sacrifices and small wins, and it all comes down to what you do today. When you add up all those small wins, they often make the difference between living your dream of financial freedom and living a life of regret.

Successful investing is best achieved by making regular contributions and watching them accumulate over time. Small incremental returns, day after day, month after month. Do the smart thing and be savvy with your savings to fuel efficient investment returns.

Your financial plan should be robust, yet flexible enough to weather whatever the markets throw your way. Contact a financial adviser to help you confidently navigate a world in permacrisis. 

A Word from our CIO - Adriaan Pask

Industry Views - Nirdev Desai

Investing and trading - Wendy Myers

Estate Matters - Mariska Comins

Quarterly Insight - Jan van der Merwe

Employee Benefits Insight - Robyn Laubscher

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