Page 38 - Cemair Skynews October& November 2015
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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.
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