Page 28 - Waterfall_Issue 5_2022

Waterfall News

CREATING

FINANCIAL

SECURITY

requires discipline and time

By Nirdev Desai, Head of Sales, PSG Wealth

W hen one goes to a GP planning without addressing a TOP TIPS TO REACH YOUR

INVESTMENT GOALS
need for liquidity (such as can be
for what is perceived
achieved with an emergency fund),
as a minor ailment, a
Think of your income-to-wealth
quick fix is most often
markets where the risk is higher in
the preferred (and expected) remedy this could prove devastating in continuum. Does your income
need to produce wealth, or does
that will allow one to get back to terms of job security. Should such an your wealth increasingly need to
normal daily routines. In a similar way, individual be retrenched, both the produce income? You can think
clients often engage the services of an retirement planning objectives and of this continuum as a series of
adviser for a quick fix to their financial immediate income needs will be in cash flows across your lifetime
wellbeing. However, the symptoms jeopardy. Holistic financial planning (and even into future generations).
displayed by one’s body are sometimes that may take decades to address Life is not as simple as having 40
indicative of larger issues that need to should therefore be the goal of those years’ worth of steady income to
be addressed and, in such cases, more looking to achieve financial freedom. plan for a sustainable lifestyle after
serious adjustments may be required retirement. It is prudent to plan for
to ensure one’s health improves. Such REVISIT YOUR FINANCIAL unexpected events that may occur
adjustments must be approached PLANS along the way – both setbacks (such
with dedication and commitment to A financial plan needs to be flexible as retrenchments, loss of dual income
ensure that the symptoms and the enough to continuously evolve as in a household, or the addition of
underlying causes are addressed. It is life circumstances change. As an unplanned dependants on household
no different with financial planning. individual goes through life, and income) and windfalls (like bonuses,
financial milestones are achieved, inheritance, or tax rebates). Use these
HOLISTIC PLANNING IS the financial planning journey needs cash flows to bolster your holistic
CRITICAL to be restructured – to balance financial planning objectives.
A common misconception is the requirement to use income to
that one can apply a single-need produce wealth, and (with increasing UNDERSTAND YOUR
analysis to address a single financial financial freedom) the ability to RISK REQUIREMENTS
objective in isolation. However, produce sustainable income from HOLISTICALLY
that single-need objective may wealth that’s been accumulated. Your investments devoted to
not be addressed effectively if Life is full of uncertainty, so achieving long-term financial goals
other aspects of a holistic financial financial plans need to be re- (e.g. retirement and legacy asset
plan are not taken into account. evaluated regularly to ensure they planning) may include more growth
continue to be aligned with your assets, so their return profiles will be
As a simple example, if an individual needs – particularly if unforeseen fundamentally different from those
decides to address retirement setbacks to the plan occur. of your conservative assets (e.g.

Life is full of uncertainty, so financial plans need to be re-evaluated
regularly to ensure they continue to be aligned with your needs

26 Waterfall Issue 5 2022