Tag: PSG Wealth

With South Africa being added to the Financial Action Task Force's (FATF) grey list, we do not believe markets will continue to react over negatively due to the greylisting, especially since a lot of this unwelcome news has already been priced in by markets.

We have all heard the phrase: “It’s not about timing the market, but time in the market.” One of the most important lessons parents can teach their children is the value of money – how to really understand the dynamics around investing and how to make money work for them.

Looking at global news headlines, we are inundated with negative news – from concerns about the war in Ukraine, the possibility of a global recession and uncertainty about the future of global inflation and interest rates. Locally, things appear equally uncertain and gloomy.

We often hear that South Africans are not saving and investing enough. A report from Genesis Analytics in partnership with the Financial Sector Conduct Authority (FSCA) showed that 90% of South African retirees can’t sustain their standard of living prior to retirement, and two-thirds of members have less than R50,000 in their retirement fund.

Despite some changes in recent years, women still have a tendency to leave financial affairs to their husbands. Often, women are far removed from the detail and this could be an obstacle when they need to make financial decisions they have little experience or knowledge of. Divorce or the death of a spouse can turn the best laid financial plans upside down.

There is so much uncertainty in the world today – from the two-year-long fight against the pandemic and consumers’ battle against war-induced fuel hikes, to investors trying to interpret global recession concerns or South Africans’ struggle with Eskom.

Estate planning involves structuring and managing your assets while you are alive, and putting measures in place to ensure your wishes are carried out after you pass away. It also ensures that there are no unexpected surprises your family will have to deal with.

Searching for photos of mountain climbers (not the exercise), you’ll more often than not find images of happy, jolly people on the summit, or with the abyss behind them. You rarely see the whole journey, which can make it seem as if reaching the top is only for a select few.

Olympic athletes devote years of training and effort to ultimately reach the podium. They don’t do this on their own, however, but rely on experts to help them get there. Who is your coach and how well are they assisting you on your financial track?

Bouts of market volatility may be unsettling but they are an unavoidable feature of long-term investing. The important thing is to avoid making mistakes along the way. These investment guidelines hold true for any environment, but they’re particularly useful to keep in mind during times of extreme volatility.