Page 38 - Cemair Skynews October& November 2015
PERSONAL FINANCE Investing and your life’s savings: 36 October / November 2015 CEMAIR THE FUTURE IS NOT WHAT IT USED TO BE! Contributing writer, Patrick Leary (Portfolio Manager, Private Wealth, Sanlam) shares valuable investment advice. Gone are the days of defined 1. Industry diversification benefit pension funds. Now the 2. Geographic diversification – i.e. local name of the game is defined and offshore investments pension fund contributions. 3. A balanced asset class allocation, These funds are the main source of including: savings for most people. However, what • Ordinary equities (shares) some do not realise is that they are being i. Industrials exposed to the equity markets through ii. Resources their pension funds, retirement annuities, iii. Consumer preservation funds or living annuities. Thus iv. Technology the capital value of one’s pension pot at • Property stocks retirement is likely to be materially affected • Preference shares by the performance of equity markets and • Fixed interest the competence of the underlying portfolio • Offshore investments manager. The burning issue, therefore, is how Transparency, input and influence into does one protect ones investments / one’s pension pot, whether in a living retirement funds in these volatile markets annuity, retirement annuity or pension and turbulent times? fund is possible. Understanding your Many people perceive that investing in investments is fundamental to having the stocks and shares (equities) is tantamount retirement you want and plan for. to gambling and choose to stay out At Sanlam Private Wealth, in association of investing in the stock market. Many with a financial adviser such as The have also been exposed to a range of Insurance and Investment Shop (Lincoln disparaging news about financial services Myburgh) and, crucially, a pension over the last few years, which might be administration platform like Glacier by putting them off. Does that mean that Sanlam, we offer individually tailored those who invest in equity markets are bespoke pension, provident, retirement gamblers or that we are opening ourselves annuity or living annuity investment up to undue risks? History dictates that the portfolios where clients get detailed answer is ‘no’, provided we realise that the monthly statements showing all details of purpose of investing in the stock markets what shares and investments they own in of the world is not to realise short-term their own name, including movements and gains but achieve inflation beating growth dividends received. over the long term. Statistics unequivocally show that investing in equities (stock If you would like more information on markets) has for the past 100 years been retirement planning and or managing the best way to consistently grow your your investments, please contact either retirement nest egg above the inflation rate Patrick Leary at patrickl@privatewealth. over time. sanlam.co.za (044 382 7727) or Lincoln The world has been experiencing highs Myburgh at plettinsuranceshop@ and lows in the markets for decades and global.co.za or telephone on 044 533 there are those doomsayers who believe 1245. For more articles and views from that ‘this time it’s different’. I believe not! Sanlam Private Wealth, please visit In South Africa today we have www.1of1privatecollection.co.za more scope today than ever before to structure our investments in such a way Sanlam Private Wealth (Pty) Ltd, registration number as to help diversify away some risk to 2000/023234/07, is a member of the Johannesburg Stock help protect and grow the capital value Exchange, a licensed Financial Services Provider (FSP 37473) and of our investments. So to answer the a Registered Credit Provider (NCRCP1867). question “how does one protect ones This article is for information purposes and should not investments in these volatile times?” be treated as a forecast, research or advice to buy or sell any one has to look at crafting, with the particular investment or to adopt any investment strategy. Any views help of your portfolio manager and/ expressed above are based on information received from a variety or financial advisor, a portfolio of of sources which we believe to be reliable, but are not guaranteed investments that has all the following as to accuracy or completeness by Sanlam Private Wealth. Any attributes: expressions of opinion are subject to change without notice. Reproduction of this commentary is not allowed in whole or in part without prior written agreement from Sanlam Private Wealth.