Page 23 - Waterfall City_Issue 11_2022

THE ROLE

www.chasingcars.co.za

2013 Aston Martin Vanquish Coupe 1958 Mercedes-Benz 220 S Ponton Cabriolet OF GROWTH
ASSETS

in creating intergenerational wealth

By Nirdev Desai, Head of Sales, PSG Wealth

“Growth assets – such as listed equities – are the
Priced from R 1 999 999 Priced from R 2 899 999
15 500KM 31 500KM best way to achieve inflation-beating returns.”
Power: 415 Kw (565 hp); Torque: 619 Nm; Power: 35 Kw (46 hp); Torque: 104 Nm
F perspective, there has never along with easier credit extensions to WILL STAND THE TEST OF
0-100 km/h: 4.1 seconds; Maximum speed: 294 km/h 0-100 km/h: 3 days; Maximum speed: 160 km/h rom a life expectancy gratification and lifestyle creep, AN INVESTMENT PLAN THAT
2019 Audi R8 V10 Plus Quattro 2016 Mercedes-AMG GTS Coupe
TIME NEEDS TIME
consumers, has resulted in the average
been a better time to be alive –
the average life expectancy has
to draw on during traditional non-
to growth assets to address
crept up steadily in both developed individual having less available capital Investments need to have exposure
and developing countries. Interestingly, income earning periods (such as inflation. Growth assets – such as
China, a developing economy, retirement, sabbaticals, retrenchments listed equities – are the best way to
now has a higher life expectancy etc.). Balancing a lifetime of earning achieve inflation-beating returns.
than the United States (Quartz ability, more time for exposure to They require time, however, with
Inc). Together with life expectancy, growth assets in a lifetime, and the a typical minimum recommended
quality of life is also improving. effect of compound growth are the period of 10 years. A robust, holistic
opportunities for intergenerational financial plan traditionally allocates
At the same time, however, wealth to be harnessed within this a component of the plan towards
Priced from R 2 250 000 Priced from R 1 399 999 consumerism combined with instant improving world. growth assets, but investor behaviour
often detracts from these growth
29 500KM 13 500KM assets’ ability to deliver on their
Power: 449 Kw (602 hp); Torque: 560 Nm Power: 375 Kw (503 hp); Torque: 649 Nm
0-100 km/h: 3.2 seconds; Maximum speed: 333 km/h 0-100 km/h: 3.5 seconds; Maximum speed: 310 km/h expected returns. Examples of this
are when fund changes are made to
2018 Maserati Levante S GranLusso 2018 Porsche 911 GT2RS similar types of investment strategies
or when investors sell out of markets
at the worst possible times. Despite
having more information at their
fingertips, investors’ biases often
result in actions that cause damage
to otherwise well-structured plans.

The graph here clearly shows how the
recent major market sell-off (which
occurred during the initial stages
of the COVID pandemic) locked in
paper losses and did not participate
Priced from R 1 659 999 Priced from R 4 799 999 in the recovery. Nearly one third of
28 500KM 12 500km investors above 65 sold all of their
Power: 321 Kw (436 hp); Torque: 580 Nm Power: 522 Kw (700 hp); Torque: 750 Nm stocks sometime between February
0-100 km/h: 3.8 seconds; Maximum speed: 305 km/h 0-100 km/h: 2.7 seconds; Maximum speed: 340 km/h
and May.
JAMES BEATTIE | +27 82 331 1717 | james@chasingcars.co.za | @chasingcars.co.za
Waterfall City Issue 11 2022 21