Author: Hereford Group

The recent Soccer World Cup was a pretty good illustration of how the best-laid plans can come to nothing and that sometimes goals are nothing but just hit or miss. There was no doubt that every team came to play with the intention of winning, but it was clear that in the case of some of the more favoured teams their mindset let them down.

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There are good reasons to review your financial year as we near the end of 2022. We all know it was a tough and challenging year with energy costs reaching inflationary levels unseen for many years in some parts of the world consequently affecting all other costs and of course global markets.

Astute investors, however, know that sometimes such times bring opportunities so they don’t just throw their hands up and surrender, but simply seek advice from the professionals to see where they might have scored and how they might have done things differently.

There’s something to be learned from this by all of us. Regardless of what level of wealth we may enjoy, or what constant challenges we seem to be facing, by reflecting on 2022 we can determine a financially better 2023!

The four ‘D’s

Financial Advisors know that a healthy wealth profile is a holistic one encompassing not only financial growth but the protection of yourself, your loved ones and of course your assets. When these are compromised and we aren’t positioned to cushion the blows that life inevitably throws at us, whatever wealth we have managed to create is also compromised.

Before plunging into 2023 and what promises to be another economically tough year (some are even predicting the possibility of a global recession) it’s a good idea to just take a close look at some of the challenges that may have transpired in your life or the lives of those around you in 2022. We call them the four ‘D’s and going into the new year you need to be prepared for them…

Depletion of assets

Fire, theft and motor accidents are simply a part of life and chances are you experienced one of these in 2022, or you or your business were victims of cyber-crime. If you are not adequately insured against such things it eats away at the capital of your savings and investments. Let our Financial Advisors point you to experts in the field of short-term insurance to make sure you are protected against these in 2023. It should be a part of your overall portfolio.

Disability

An accident, acts of violence or a critical illness are not something things you expect to happen, but you can never think they only happen to other people. Good medical cover, Gap cover, Critical illness cover and Income protection are vital parts of the armour you need to protect your wealth in 2023. Think about it – do you know someone who went through this and wasn’t prepared for it in 2022? – chances are you do.

Death

Sadly the circle of life affects us all and death is inevitable, so the chances are in 2022 you would have experienced a death, hopefully not of someone close to you but the probability is that it would have been someone you know.

The question is did that person leave an up-to-date, legally binding will – and was his or her family able to access whatever was left to them if anything? Having a will in place, Life insurance and a properly planned estate will give you great peace of mind as you enter 2023.

Depletion of wealth

The advent of any of the above, for those who were not prepared, would have depleted their savings or investments and ultimately their wealth creation for the future. Yes, we do need to look to the future too with solid investments and tax-reducing retirement plans like Retirement Annuities, but taking care of the present is just as important if that future wealth is not to be eroded.

This is where Hereford Groups’ highly trained Financial Advisors come in and if you do your year-end review with us you will find that you can plug all the potential pitfalls that 2023 can throw at you and still have a wealth creation plan that looks to a brighter future.

Talk to us today and let us customise a wealth growth strategy for your specific requirements and within the realms of your unique circumstances – after all, that’s exactly what makes Hereford Group different.

For those of you going away and who haven’t already done that year-end review, we’ll be happy to set it up for you first thing in the new year. Travel safely!

The economic outlook for 2023 is not very positive and as we continue with the Russia/Ukraine war and the ensuing energy crisis economists are predicting a recession for the USA which inevitably spreads to a global recession.

Here in South Africa productivity is low, and we’re constantly facing service delivery cost increases and political turmoil leading to unrest which again is costly. All these deplete the economy, so we can hardly expect 2023 to be a year of plenty.

As people with a half-glass-full mentality, however, we know that even the toughest times can present opportunities and by doing a few of the right things we can cushion the blows that lead to the erosion of wealth.

These are 5 essential wealth preservation methods that will give you some chance to see difficult times through unscathed and even aim for financial growth in 2023…

1. Prepare for tough times

You need to think of your wealth as a pile of coins surrounded by life’s greedy unexpected events all wanting to take something from it. The only way the pile can grow is if it is big enough to withstand a major assault and is protected all the time.

This means having a solid foundation, so create a savings fund that will see you through at least a few months of bad times. Ensure that the savings are growing too by being invested in good interest-bearing funds.

2. Trim the fat

The other way the pile will be depleted is if you can’t ever add to it. This means that you need to ensure whatever you spend is way less than what you earn. While you are earning, trim the fat off your budget. Do you really need that gym or magazine subscription or an expensive holiday?

Eliminate debt too wherever you can, or at least deplete it before it depletes your pile. When you have some spare cash or that year-end bonus you could do well to reduce your bond or pay off any other form of debt that you can eliminate in the new year like a credit card or hire purchase account.

3. Protect yourself with cover

The other way your pile can be rapidly depleted is by the always unexpected onslaught of an accident, critical illness or losing your job or your business. While you have the money to do it always ensure you have good medical, critical illness and income protection cover. This gives you a much better chance of surviving the worst that 2023 may throw at you.

4. Review your will – for peace of mind

To be a financial success in tough times we need to be at the top of our game. Niggling worries, like not knowing if your loved ones will be cared for if you do suffer something fatal will not help. At the end of the year whilst you have time, or before you travel, ensure your will is updated and you have a well-planned estate so that your loved ones will receive that pile that you have worked so hard for.

5. Review and restore with a Financial Advisor

It may all sound like it’s tough to do and you’ll never be able to enjoy life, but take it from us, when your finances are well structured and protected under the advisement of one of the Hereford Group’s skilled Financial Advisors, that pile starts growing pretty quickly and you can start living a better life too.

All it takes is some review at the end of the year – or the beginning of 2023 – and you can start restoring your finances and still aim for financial growth in 2023!

Talk to us today to set up an appointment. Happy Holidays – and thank you to all who have entrusted the growth of their wealth to us in 2022. May 2023 be your most prosperous year ever!