Seek protection, benefits and bargains in a lean financial season

One thing that is for sure is that some valuable lessons are being learned from the Coronavirus crisis. As this dreaded virus continues to hold us in its grip many things are being realised about where we might have been going wrong, and what might be more important to us.

The environment has been given a great relief during the lockdown, as displayed in the blue skies in China and clear canals in Venice, telling us that perhaps we need to take a much closer look at carbon emissions caused through industry.

Many of us would have found our close family time rewarding in many ways and possibly some personal priorities have been shifted. Unquestionably from a financial point of view many of us will have been greatly tested and perhaps we need to be looking at what our financial structure was and whether more astute planning might have found us in a far better position right now.

‘What if’s’ are a very hard pill to swallow though at a time when some are really cash strapped, temporarily out of business, or who have taken a beating on the markets. As a company that always takes a long term view, we try to encourage our clients to do likewise and believe many of our clients can, if not entirely recover, at least cushion the blow before it is too late.
Here are a few important things you can review and seek astute financial advice on right now…

Risk benefits

These are financially challenging times, but they might have been a little less stressful if your risk had been lowered by astute financial planning and management. Ensuring that your risk benefits are all reviewed and well maintained now is important and not too late.

Income protection

If there is another thing to have learned from COVID-19 is that there will always be certain things that we are not in control of and could not have foreseen. Making sure you have sufficient cover and protection on your income in the event of an illness, injury or retrenchment is just one way you can try to make lemonade when life throws you lemons.

Cash is not king when the court is crumbling all around him

Over the last 5 years, Cash has been one of the best performing assets, so if you were ‘in Cash’ you would have done pretty well. Right now however, and in the short term, it is not wise to hold too much cash as an investor, as interest rates are tracking downwards. We have already seen a significant drop in the repo rate and who knows where it may still go to.
Bargain hunting for the bold

One of the silver linings of this dark cloud is that for those investors who may be holding onto cash this is ‘bargain hunting’ time! Even with the slight upturn in the markets in the last few weeks, some investors buying at the bottom of the downturn have already made millions!

Our advice is not to shy away from investing due to the market downturn, but rather use the opportunity to invest in “discounted” stock. Something to be noted and certainly not ignored is that despite two major crashes over 15 years, local equity is still the best performing asset class – so it seems that equities always come through.

Serving the individual for over 25 years

Nobody likes ‘I told you so’s, but it is a fact that due to astute financial planning many of our Hereford Group Financial Advisors prior to, and even at the outset of the recent financial slump, saved their clients thousands, if not hundreds of thousands, of Rands. This was achieved through creating the right portfolios in keeping with their client’s own financial objectives and capabilities.

Our Financial Advisors are feeling the pinch as much as anyone, but ‘lockdown’ definitely does not mean ‘shutdown’ and we are there for you, as we have always been, ready to give all the advice you need.

Contact us whenever you need us – and remember valuable lessons can be learned from every crisis situation, so take cover, take action and most importantly – take care!

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