The Investec Top40 Accelerator (“the product / Accelerator”) presents an opportunity for investors to invest in the performance of the FTSE/JSE Top40 Index (“Index”) in a geared fashion whilst limiting the downside risk. The new product, which is open for subscription until 17 September 2014, has a three and a half year term and is […]
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- Q: How did you get involved in financial services - was it always something you wanted to do?
- A: My father, John Field, established FedGroup in 1990. As such, financial services have been a part of my life for a very long time. My decision to enter the business, however, had to do with how this industry had the potential to transform the lives of South Africans. I studied for a CA degree, indicating my interest in finance from a relatively young age, but the understanding of the impact investing can have in people’s lives is what provided the impetus to build a career in the financial services industry.
- Q: What is wealth and how can we build it?
- A: Wealth is a very simple concept. The less one spends, relative to one’s income, the greater the wealth. A high earner, driving a luxury vehicle, but who is in deeply indebted to the bank, holds less wealth than the individual living within their means. The concept is so simple, yet more than half of all economically active South Africans are in debt, and many are battling with bad credit records. Most of the time, we don’t slip into debt through calamity, but rather through a lack of understanding or discipline to save.
- Q: What is one thing we can do to boost savings - and one thing we need to stop doing?
- A: The key is education. If people understood the power of compound interest, we would go a long way toward instilling a savings culture in South Africa. As the adage goes, “Those that understand it, earn it; those that don’t, pay it”. Again, we go back to the question of wealth. Most people will apply for finance to buy a vehicle, and pay it off over five years – rarely do they consider that if they saved the instalment amount for three years, they could buy the car for cash. This is perfect example of how compound interest can work either for and against you. A key point of concern is something being addressed currently in the retirement reform: the practice of withdrawing retirement savings before retirement age. Again, this highlights the power of compound interest – where a critical element is time. Nothing can replace the value of consistency and time. People believe that they will make up for lost time by investing a windfall at a later stage – that they have time to make up the earnings. Reality does not pan out this way. We need to stop delaying.
- Q: What can the industry do to alleviate the poverty cycle?
- A: Education is paramount. While there is no silver bullet, education is, in my opinion, the most critical factor in breaking the poverty cycle. Less than 40% of our population has a matric certificate or some form of tertiary education, and it is shown that a combination of tertiary education and some work experience provides significant advantage to job seekers. This is the reason FedGroup has initiated the Iteke Learnership programme. We provide learners on the programme with education, mentorship, and work experience, and select candidates from our beneficiaries, who are graduating from matric. I strongly believe that if every business where to incorporate a learnership programme into their business model, there would be a tangible impact on the socio-economic outlook of the country. As individuals and organisations, we need to start taking responsibility for the well-being of our youth.
Taking stock around the globe 1. The US economy is looking better Yes data is not always consistent, but overall the consumer’s debt level has lessened, the housing sector has improved from its 2008 lows, jobs are being added, unemployment is down, and GDP is starting to come through. “The trend is a good one,” […]
South Africans have seen exceptional investment growth in the recent past, but the benign market environment is not likely to continue, according to Coronation Fund Managers. As valuations appear stretched and the risk of volatility increases, the focus for investors close to retirement should be on managing risk, says Charles de Kock. He co-manages Coronation’s […]
Road crashes are the single greatest annual cause of death nationwide. According to the Association for Safe International Road Travel, road traffic injuries predicted to become the fifth leading cause of death by 2030. According to Lizette Erasmus, Head of Insurance Services at IntegriSure, most accidents on our roads are as a result of human […]
Be sure to account for the full term of an investment ahead of the upcoming MPC rate announcement A year ago, when deliberating the interest rates, pundits expected a steady and quick rise. In reality, the climb proved to be slow. FedGroup CFO Scott Field’s investment approach begins with an evaluation of some hard numbers. […]
Essential financial planning aspects to consider when approaching retirement Abraham van der Westhuysen, advisory partner at Citadel, suggests that having a financial plan is the first step to a good retirement. In the below piece, van der Westhuysen discusses the vital financial planning aspects that should be considered, as well as the common mistakes investors […]
South Africans do not save much and therefor rely on credit instead of on savings during tough financial times. The problem is that credit cost money or interest, which could be avoided if there was enough savings. So, is there a solution? According to PSG Wealth Technical Sales Analyst, Jabez Serfontein, there is a solution. […]
There is such a plethora of investment vehicles available on the market these days that it is often difficult to know what the best option is for you. As with any investment, you want the best returns with the lowest risk. Beata Carstens, a Certified Financial Planner from Veritas Wealth explains that deciding on the […]
In addition to leaving their estates to loved ones, many people these days also want to leave a lasting legacy by benefitting a favourite charity. A charitable bequest – which is simply a distribution from your deceased estate to a charitable organisation by a bequest in your will – is an easy and effective way […]
By Greg Stockton, Africa Divisional Manager of deVere Group It’s almost universally recognised that the best way for most people to secure financial freedom is to devise, implement and manage a sound, tailor-made strategy with an independent financial adviser (IFA). But choosing the right IFA, a professional who will manage your money and help you […]
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Newsletter 11 September 2014: Wills and the importance of selecting an executor
Today we share some thoughts on drawing a will and selecting an executor. Next week […]
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