Why would you invest in the markets – locally or abroad?
Sometimes the word “investing” sounds daunting and vague. By now you know me as being passionate about making your money work for you! I would like to take some time to explain some principles that might help shed light on this lucrative tool to grow your capital and possibly be a step closer to financial freedom.
Start now
A wise person once said that compound interest is the eighth wonder of the world. Growth upon growth (compound interest) is unbeatable when it comes to building a capital nest egg. R100 invested for 5 years at an average growth of 15% per year doubles in that period! It follows that the more you invest early in the investment, the smaller the burden is later.
Broaden your market exposure
Our South African GDP forms part of a broader world economy. It is sobering to see the part we play in this macro worldwide economy. Less than 0.5%! Compare this with America that contributes 25% and China that adds 15%. It makes one wonder why we would not rather benefit from these giants in the economy!
South Africa has proven to have some world-class companies to drive our markets. However, the backdrop of difficult economic conditions proves to be a challenge over the long run to build stability. When writing this communication our JSE index is at a all-time high. Expressed in rand terms: if you invested R1000 five years ago you would now have R1340.
To illustrate this point, I compared this with investing in the US over the same period: in the S&P500 that same R1000 would now be R1980.
This excludes the effect of the declining Rand. See the difference if I factor the Rand in! R1000 became R2420.00.
Stay committed
Often, when times are tough, we tend to shy away from keeping up regular payments. I always think of a downturn in the market as a discounted sale of assets. Remember, the companies driving the index are still the same companies. (Ask any lady how chuffed she feels if the gets those amazing pair of shoes at half the price!) External factors often cause the downturn in the market. Examples are COVID-19, Brexit, and in 2008 the Home loan bubble. These events cause fear, that in turn cause investors to sell, thus driving the market down. If you are wise, this would be a time to capitalize on the cheaper prices.
Stay informed
There is no better motivator for building your wealth than seeing that this process works! Avail yourself of information to keep track of your investment and stay in touch with your advisor for regular review sessions.
We have tailor made solutions for you
I am qualified and have ample experience to manage and advise on your total capital position. I am also happy to give advice on large sum investments as well as monthly contributions on a wide range of products, considering your specific situation, risk profile and financial ability. Feel free to make use of this offer!
Sanlam
Sanlam offers monthly contribution products, that can be fixed for 5 years or open ended. Their experience of more than 100 years combined with Glacier’s leading market platforms make for a formidable offering.
Glacier
Glacier is a leading platform in South Africa with offices in Bermuda. This makes them the ideal partner when you want an international investment. Their minimum investment his a lumpsum of R100 000 with a possibility of a monthly or periodical addition. We established processes that makes it easy and affordable to take money out of the country. Anybody can do it!
Glacier also offers leading investments locally, protected with built in boosters and guarantees.
Start today! Talk to me. Together we can make a difference for you!
