by SFT | Apr 14, 2025 | Financial Planning, St Francis
Retirement is a time to enjoy the fruits of decades of work, but market volatility can challenge even the most confident investors. Navigating turbulent times requires more than just financial knowledge—it demands a calm, strategic mindset anchored in a well-thought-out plan.
Many people associate “the stock market” with unpredictability and fear. This emotional response often leads to rash decisions, especially when the media amplifies every downturn. But history shows us that markets rise and fall—and recover. Understanding that volatility is normal is the first step in maintaining perspective.
Successful retirement planning
A cornerstone of successful retirement planning is having a detailed cashflow plan. It’s not enough to guess your expenses—know them and understand how inflation uniquely affects your lifestyle. This clarity allows you to assess your real return needs, which are the returns after inflation, not just raw percentages.
Unfortunately, the financial industry is full of jargon. Reframing technical terms into everyday language helps retirees engage more confidently with their financial strategy. For example, understanding the difference between “risk” and “volatility” is crucial. Volatility is short-term movement; risk is the possibility of not meeting your long-term goals.
Risk Fuels Growth
Risk is necessary because it fuels growth. If your time horizon is long—say 30 to 40 years in retirement—you need investments that outpace inflation. That’s where global equities come in. Over every long-term historical period, they’ve delivered positive returns and remain the only asset class to consistently beat inflation.
But emotional reactions often derail even the best plans. That’s why it’s vital to anticipate the psychological cycles of investing—fear, denial, panic, and eventually, recovery. Managing emotions is just as important as managing money.
Bucketing Approach
One practical way to build resilience into your strategy is by using a bucketing approach. This involves dividing your retirement assets into short-, medium-, and long-term “buckets” to match your expected cash needs. Keep two to four years of income in cash to protect against “sequence risk”—the danger of withdrawing during a market downturn early in retirement.
Finally, a reminder: markets don’t care who the U.S. president is. They respond to long-term drivers like innovation and consumer demand. With a structured plan and the right mindset, retirees can confidently navigate volatility and enjoy the retirement they’ve worked hard for.
Dirk Groeneveld, Certified Financial Planner.
by SFT | Mar 31, 2025 | Financial Planning
When it comes to building and preserving wealth over the long term, global equities stand out as the only asset class that has consistently outperformed inflation. While cash loses value over time, and bonds may struggle to keep pace with rising prices, global equities have historically delivered strong, positive real returns. This makes them an essential component of any long-term investment strategy, particularly for retirees who need their savings to last several decades.
A simple way
One simple way to grasp the power of global equities is to take a look inside your fridge or bathroom cabinet. The products you use daily—whether it’s a soft drink, toothpaste, or shampoo—are made by multinational companies traded on global stock markets. Investing in global equities means owning a share of these businesses, benefiting from their growth and innovation. From consumer staples to cutting-edge technology, global equities represent the entrepreneurial drive that fuels human progress.
Human Ingenuity
At its core, the stock market is a reflection of human ingenuity. Companies are constantly evolving, finding better ways to solve problems, improve efficiency, and create value. Global equities embody this spirit of innovation, as businesses adapt to changing consumer needs and technological advancements. Over time, this relentless pursuit of progress has translated into significant wealth creation for long-term investors.
A common concern
A common concern for retirees is market volatility, but history provides reassurance. Someone retiring at 60 today could have a 40-year investment horizon. Over any long-term period, global equities have never been negative. While short-term downturns are inevitable, markets have always recovered, rewarding patient investors who stay the course. The lesson is clear: timing the market is far less important than time in the market.
Consumer demand
Investors often worry about political events, particularly leadership changes in the United States. However, the global equity market does not care who the president of America is. Markets are driven by corporate earnings, innovation, and consumer demand—not political cycles. While headlines may cause temporary fluctuations, the broader trend of global economic growth remains intact.
For those seeking long-term financial security, global equities remain the best vehicle for wealth accumulation. They offer protection against inflation, exposure to the world’s most successful companies, and a stake in the ongoing story of human progress. By embracing global equities, investors position themselves for a future of opportunity and growth, regardless of short-term uncertainty.
– – –
Dirk Groeneveld, Certified Financial Planner.
by SFT | Mar 23, 2025 | Financial Planning
Ever wished you could take a sneak peek into the future before making a big financial decision? Imagine knowing tomorrow’s news today—sidestepping market downturns and jumping on opportunities before anyone else. It sounds like the ultimate advantage, right? But as a fascinating study recently proved, even with perfect foresight, financial success isn’t guaranteed.
The Crystal Ball Illusion
We’ve all seen it in movies—like in Back to the Future II, where Biff gets his hands on a sports results book from the future and makes a fortune betting on games. Researchers at Elm Wealth tested a similar idea. They gave 118 financially trained participants a set amount of money and let them invest—after seeing the next day’s Wall Street Journal front page.
The results? Half lost money. One in six went bankrupt. Even with tomorrow’s news in hand, the average participant grew their investment by just 3.2%.
This little experiment teaches us something powerful: knowing what will happen tomorrow is not as valuable as we think.
Why Knowing the Future Still Doesn’t Work
How is it possible to lose money when you know what’s coming? Simple: information isn’t the same as wisdom.
Firstly, participants struggled to interpret the news correctly. Even with an apparent advantage, they only predicted market movements correctly 51.5% of the time—barely better than flipping a coin.
Secondly, even when they were right, they didn’t know how much to invest. It’s like knowing a storm is coming but not knowing whether to carry an umbrella or build an ark. Some overcommitted and lost big, while others played it too safe and barely gained anything.
What Really Builds Financial Security?
This study is a great reminder that long-term financial planning beats short-term predictions every time. True financial security doesn’t come from guessing what the market will do next week—it comes from having a strategy that weathers all market conditions.
Think of your financial journey like sailing across an ocean. Sure, knowing tomorrow’s weather would help, but what really matters is having a strong boat, reliable navigation tools, and an experienced captain. A financial plan is that boat—it keeps you steady through storms and calm waters alike.
Good financial planning isn’t about betting on market movements. It’s about diversifying your investments, structuring your finances tax-efficiently, and ensuring your plan adapts as your life changes. Markets will always go through ups and downs, but a well-built financial plan remains focused on your long-term goals.
Planning for the Future—Without Predictions
Financial success isn’t about perfect predictions—it’s about timeless principles:
- Patient investing that weathers market ups and downs.
- Smart diversification to spread risk.
- Consistent saving to create a financial buffer for unexpected events.
- Regular reviews to keep your plan aligned with your changing life.
At the end of the day, peace of mind doesn’t come from knowing the future—it comes from being prepared for it. A solid financial plan gives you something far more valuable than tomorrow’s headlines: confidence today and resilience tomorrow.
At Client Care, we won’t claim to predict the future—but we will make sure you’re ready for whatever comes next. Instead of chasing certainty, let’s build a plan that keeps you financially secure, no matter what surprises life throws your way.
—
Dirk Groeneveld, Certified Financial Planner.
by SFT | Mar 23, 2025 | Financial Planning
On the 18th of March, Jeremy Gardiner, Director at Ninety One, presented an insightful discussion on global and local economic trends, and the outlook for the future, as part of a 3-event Roadshow, hosting events in Gqeberha, St Francis Bay, and Plettenberg Bay.
The event was hosted at the St Francis Brewing Co, hosted by PW Harvey & Co in collaboration with Ninety One Asset Management and featured a brief introductory presentation by PW Harvey & Co regarding their client offerings, and some brief feedback regarding the services offered using some helpful ‘Think Again’ principles which tackle current financial planning issues.
Gardiner provided an in-depth analysis of major global economies, covering the US, Europe, China, and offshore markets. His talk highlighted critical points to watch in the financial landscape, particularly in the face of mounting pressures such as tariffs, geopolitical tensions, and ongoing conflicts. He examined how these factors influence market performance and economic outcomes, offering valuable perspectives for investors navigating uncertain times.
South African Economy
A significant portion of the discussion was dedicated to the South African economy. Gardiner explored the impact of the Government of National Unity (GNU) on local markets and economic stability. He also addressed South Africa’s external relations, particularly its trade partnerships with the US, Europe, and China. These relationships play a crucial role in shaping the country’s trade balance, GDP growth, and debt management.
South Africa’s economic trajectory remains closely tied to global influences. Gardiner delved into how international developments, including policy shifts in major economies, affect local markets. He provided insights into South Africa’s ongoing fiscal challenges, emphasizing the importance of sustainable growth strategies in the face of rising national debt.
Insights from the Jeremy Gardiner Talk Hosted by PW Harvey & Co and Ninety One
Valuable Perspective
Gardiner’s expertise provided a valuable perspective on the evolving financial landscape, equipping investors with essential knowledge to navigate the complexities of both global and local markets, in an easily digestible manner.
With financial markets constantly evolving, events like these serve as crucial platforms for understanding economic shifts and making informed investment decisions. PW Harvey & Co and Ninety One Asset Management continue to empower their clients and the community with knowledge and expertise, ensuring they remain ahead in an ever-changing financial world. It was an effective event, enjoyed by all.
Read more: Wildside Sunset – Incredible imagery from local photographer Clive Wright
by SFT | Mar 18, 2025 | Financial Planning
In the last few weeks, I’ve seen firsthand how quickly life can change. We often plan for the future, but unexpected events can shift our priorities overnight. Two recent experiences with clients reminded me of the importance of having a financial plan that is both robust and flexible.
From a Two-Year Countdown to Immediate Retirement
One client, who had been carefully planning his retirement for two years down the line, walked into my office with a life-altering question:
“Can I afford to retire now?”
He had just learned that he needed two major surgeries in the next 18 months and couldn’t imagine working through that physically and emotionally demanding period. It was a daunting realisation, but because we had built a solid financial plan together over the last eight years, we could quickly update his numbers and re-evaluate his position.
By the time we met the following week, we had good news—he was ahead of his retirement plan due to his disciplined saving habits. Not only could he retire immediately, but he and his wife had more financial security than expected. This allowed them to add in experiences and plans they had previously left out, knowing they would not run out of money.
Making a Dream Move Happen in a Week
Another couple, already enjoying retirement, made a spur-of-the-moment decision to buy their dream home. They weren’t unhappy where they were, but this new property checked every box they had ever wanted in a retirement home.
The only challenge? They needed the cash within a week for the deal to happen.
Thanks to our strong relationships with investment providers, we were able to move mountains to get their funds released in record time. Normally, such processes take much longer, but knowing the right people and understanding how to navigate the system efficiently meant that everything was finalised within days.
The Key Lesson: Planning for the Unexpected
These stories highlight an important truth—life is unpredictable. As much as we plan, unexpected events will arise. The key to navigating these challenges is to have a financial plan that is not just well-structured but flexible enough to adapt.
It’s not a matter of if life will throw curveballs, but when. Make sure that:
- You have a plan – Without one, financial uncertainty can turn challenges into crises.
- Your plan is flexible – So you can adjust to life’s unexpected twists without jeopardizing your financial future.
A solid financial plan isn’t about controlling the future—it’s about being ready for it. If your plan isn’t built to handle life’s uncertainties, now is the time to make it stronger.
Dirk Groeneveld, Certified Financial Planner.
by SFT | Mar 9, 2025 | Financial Planning
The financial services industry is full of jargon that often confuses or even intimidates people. Words like “market,” “inflation,” or “risk” are thrown around without much thought about how they make people feel. But what if we changed the vocabulary? What if we framed financial concepts in ways that inspire confidence and action rather than fear and hesitation?
Market = The Great Companies of the World
Instead of thinking of the “market” as an abstract, unpredictable force, let’s recognise it for what it truly is—the great companies of the world. Investing isn’t about gambling on numbers on a screen; it’s about owning pieces of innovative and resilient businesses that shape our world. Apple, Microsoft, Amazon, Unilever, Nestlé—these companies represent the “market.” When you invest, you become a shareholder in enterprises that create jobs, develop new technologies, and contribute to economic growth.
Bear Market = A Big 30% Sale
A bear market—often associated with fear and panic—really just means that the great companies of the world are temporarily on sale. If you had your eye on a luxury car and suddenly saw it was 30% off, you’d be excited. The same should apply to investing. Bear markets are opportunities, not disasters, for those with a long-term perspective.
Retirement Planning = The Retirement Income Crisis
The traditional term “retirement planning” sounds like a simple to-do list, but in reality, many people are not financially prepared for retirement. Framing it as the “retirement income crisis” highlights the urgency of ensuring people have enough income to live comfortably for decades after they stop working. The focus should shift from accumulating a lump sum to generating sustainable, inflation-adjusted income.
Budget = Spending Plan
The word “budget” feels restrictive, as if it’s all about cutting back. A “spending plan,” on the other hand, is empowering—it’s a plan for how to use money wisely to enhance one’s life.
Inflation = Cost of Living Increases
Inflation sounds like an abstract economic issue, but in reality, it means the cost of your groceries, utilities, and healthcare will rise over time. Understanding it in real-world terms helps people plan for the future.
Happy Retirement = Dignity and Independence
A truly happy retirement isn’t just about relaxation—it’s about maintaining dignity and independence. Financial security allows people to make their own choices and live life on their own terms.
Fixed Income = Bonds, Cash, and Money Market Funds
Once thought of as safe havens, fixed-income investments now face challenges in keeping up with rising costs. Understanding their limitations is key to proper diversification.
Rising Income Investments = Increasing Dividends from the Great Companies of the World
Rather than just preserving capital, the goal should be growing income over time. The best companies in the world consistently increase their dividends, providing investors with a rising income stream to counteract inflation.
Risk = Volatility
Risk isn’t about losing everything—it’s about volatility, or price fluctuations. Long-term investors should embrace volatility as part of the journey, not as a threat.
By changing how we talk about finance, we can empower people to make smarter, more confident decisions about their money.
Dirk Groeneveld, Certified Financial Planner.
Recent Comments