Why do we need to invest?
Investing is an essential tool to protect and grow our wealth in South Africa. The primary goal of any investment is to beat inflation every year, which is currently at 6.9%. If we don’t take inflation into account, the value of our money will decrease over time, and we will be able to buy less with the same amount of money in the future.
To avoid this scenario, we need to consider the rule of 72, which states that if we divide the inflation rate into 72, we will get the number of years it will take for our buying power to be cut in half. Therefore, to grow our portfolio in real terms, we need to achieve a minimum portfolio growth of 6.9% per annum on our cash. This means we need to invest in an asset class that can deliver at least an additional 6% per annum, giving us a minimum of 12.9% p.a.
According to actuarial experts, we need to plan for at least ten more years after retirement age as one person in every couple that reaches 50 years of age will live up to 90 years old. Hence, it is crucial to choose investments that not only protect and grow our capital but also provide higher than inflation income growth. Investing in asset classes that fail to achieve these objectives could lead to a drop in the buying power of our money, especially during old age when we cannot do much to rectify the situation.
Fortunately, Wealth Assist is here to help its clients avoid such a bleak future. Wealth Assist provides clients with expert investment advice and guidance to help them make informed investment decisions. Wealth Assist understands the importance of investing and offers tailor-made investment solutions that are specific to each client’s unique financial goals and risk appetite.
How to start your investment journey.
Financial freedom means having enough money to live the life you want without worrying about money. However, the key to financial freedom is taking full responsibility for your financial decisions. Your income and expenses every month form your personal economy, and it’s important to use that to build a personal balance sheet.
To start building your personal asset portfolio, you can use your paycheck as the channel for investing in different asset classes that allow you to link your personal economic system to an income-generating asset. Wealth-building assets, like owning a business, property, livestock, or personal education, are better investment options than just building equity portfolios with cash.
Building personal wealth using an asset base approach always requires time, personal commitment, knowledge, and a system in place. Wealth Assist has a wealth economics model that serves as a tool for creating wealth using property as the asset class. They document their clients’ goals and use the plan to measure portfolio growth each year.
Wealth Assist helps real estate investors, and especially investors that are cash and credit rich but time poor, get involved with direct real estate investments in uniquely structured investment opportunities that make measurable and social impact while making excellent returns. As a company, Wealth Assist provides support services and knowledge in the property investment cycle to build a lucrative property portfolio. By using this approach, you can take control of your personal economy and build the wealth you need for financial freedom.
