Will your wealth plan in 2022 be all it needs to be?

As we are just about to go into another new year, hopefully, many of you are taking a well-earned break and have allowed yourself some time to reflect on the past year and take stock of where you have come to.

You can be proud if you are wealthier than you were at the beginning of 2021, as we have certainly had to endure some trying circumstances. Your savings and investments may well have been eaten into by unexpected events like illness (the pandemic has continued to plague us throughout most of the year), market downturns, reduced productivity thanks to load shedding and unrest, and of course the recent astronomical petrol price hike.

Never has the old Boy scout motto of ‘Be prepared’ been more appropriate as we ponder what we are going to do to ensure we don’t encounter and succumb to the same pitfalls next year. The critical question to ask yourself, therefore, is ‘Will your wealth plan in 2022 be all it needs to be?’

It’s about basic factors – not specific products

As we at Hereford Group have always said about our wealth creation plans, we don’t see specific insurance and investment products as being the critical factors to building a great wealth portfolio. It is more about three very important aspects that you need to include – and then we choose the right products to make it work for you. So what are these critical factors?

Plan for both short and long term

A wealth plan should never be only about how rich you are going to be when you retire one day. Yes, sure this is a critical part of a wealth plan, but it is just the tail of what needs to be a plan for life that ensures you are covered all along the way.

Building wealth often entails drawing on savings at certain times to help you or your business take the next step. This means some investments need to be flexible so that you can do so. A wealth plan also needs to be diverse, never putting all eggs in one basket, no matter how good any product may look for the long term. Remember that when there are market downturns it is this diversity that saves a lot of investors losing the whole basket of eggs in one fell swoop!

It needs to provide protection

Any effective short and long-term wealth profile needs to give you protection against the unexpected at any phase of your life. This is where vital insurances need to be in place as part of your wealth portfolio. What is the point of having a great plan when one dread disease event could cripple your flexible investments and even clean you out of business if you are not covered for some sort of income protection?
Good medical, standard short-term cover, Dread disease with disability cover and income protection are your shield against losing everything you have saved and invested for long before you get to enjoy that pension. Good life cover to protect your family also keeps your investments intact so that they can benefit both from your legacy and the life cover.

It should be custom made

This is where Hereford Group really come to the fore as we have for many years focussed on ensuring that whatever wealth portfolios we devise and structure, whether it is for the individual or your business, we understand that everyone and every business is unique.
Contact one of our Financial Advisors for a no-obligation consultation to assess what your specific circumstances are and how we can best build a customised wealth plan for you in 2022 that will be everything it needs to be!

Thank you to all our loyal clients for your continued patronage throughout 2021 – we wish you happy holidays and a fabulous new year – and please – be careful out there and return to us safely in 2022.


Submit a Comment

Your email address will not be published.