Page 33 - Waterfall City Issue 2 February 2025

THE ROLE OF A

SECURITIES PORTFOLIO

In your retirement plan

By Wendy Myers, Head of Securities, PSG Wealth

“Invest for the long haul.

Don’t get too greedy and
don’t get too scared.” –
Shelby MC Davis

R etirement isn’t just about market movements – and, if investing

offshore, rand strength and weakness.
reaching a certain age and
The savvy investor understands these
stopping work. It’s about
ensuring that your savings and
investments can provide a sustainable risks and looks to capitalise on them
regularly. An investor who remains
income to cover your living expenses, committed and disciplined when
medical expenditures, and lifestyle investing understands that market
needs well into the future. The goal movements are a natural part of
is to replace your salary with a steady investing. There is no optimal entry-
income while managing the risks of level, but those investors who remain
living longer and navigating inflation. in the market and continue to invest
locally and offshore stand to benefit
Personalised financial planning is from being invested for the long-term.
essential because everyone’s retirement Then market and currency risk simply
goals, financial situations and risk Wendy Myers, Head of Securities, PSG Wealth become noise.
tolerances differ. Whether you’re at the
beginning of your career or nearing don’t get too scared.” When investing Portfolio construction
retirement, your plan should be tailored in shares, this quote is key to achieving When deciding how to effectively
to fit your unique circumstances. As part your desired financial outcomes in the construct a share portfolio that will
of defining your holistic retirement plan, context of your holistic retirement plan. deliver sufficient returns to provide
you need to consider the role of a share Let’s consider some important points a sustainable income to cover living
portfolio in achieving your retirement that can guide you in ensuring you expenses, medical expenditures, and
outcomes, as shares continue to be the invest for the long haul. lifestyle needs, an investor needs to
single asset class that beats inflation ensure that their portfolio is diversified:
over the long-term. Risk tolerance • Locally across different sectors
When investing in shares, an investor to minimise the volatility of the
Shelby MC Davis says, “Invest for the needs to understand the concept portfolio when considering market
long haul. Don’t get too greedy and of risk – particularly in relation to movements,

Waterfall City Issue 2 2025 31