PSG answers your investing, and insurance questions.
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The tensions in the Middle East are concerning, and I am not sure how this will affect my investments - should I be worried? Therisa Broekman, Wealth Adviser, PSG Wealth, Vanderbijlpark Financial Planning
Although South Africa is geographically far from the conflict, rising oil prices will be the main channel of impact as we rely on energy imports from the Middle East. Fortunately, we’re in a better position to handle global shocks than in previous years.
Oil accounts for around 18% of South Africa’s imports. Higher crude prices raise petrol and diesel costs, feeding into transport, food, and consumer prices. Increased oil spending can weaken the trade balance and put pressure on the Rand.
South Africa benefits when global investors turn to gold and Platinum Group Metals (PGMs) during conflict. Higher export earnings from these metals help offset costly oil imports, supporting a steadier trade balance and protecting the Rand.
In short, the answer to your question is to stay invested. While conflict creates short-term volatility, long-term trends rarely change. A diversified portfolio and active management already account for risks like these. Remain focused on achieving your long-term goals and speak to a professional financial adviser to make sure you stay on track amidst any volatility.
How often should I review my investment portfolio with my adviser, and why is this important? Johann Strauss, Wealth Adviser, PSG Wealth, Centurion Midstream
Regularly reviewing your investment portfolio with your financial adviser is essential to ensure that your strategy remains aligned with your goals, risk tolerance, and changing life circumstances.
A well-diversified portfolio across asset classes such as equities, bonds, property, cash, and offshore investments helps manage risk and smooth returns over time. Reviews allow you and your adviser to keep your financial plan aligned with your long-term objectives. It’s important to structure your investment strategy according to your ability to take risk, which considers your time horizon, income stability, and financial position, rather than merely your risk appetite. This is particularly important for retirement planning, where investors need growth assets over a multi-decade period; being overly conservative can significantly increase the amount you must save to achieve the same outcome.
In addition, personal circumstances evolve as income levels change, families grow, retirement approaches, or unexpected events occur, all of which may require adjustments to contributions or strategy. Your plan should be evaluated at least annually from a cost, risk, return, and tax perspective to ensure you remain on track. Ultimately, consistent portfolio reviews ensure that your investment plan remains purposeful, balanced, and capable of delivering long-term financial security.
What are the common investment mistakes that people in their twenties should try to avoid? Annika and Bianca Strydom, Wealth Planners, PSG Wealth, PSG Silver Lakes Wealth Management & Stockbroking #TheFinTwinz
Your twenties are an exciting time, often marked by your first steady income and newfound financial independence. While this phase brings opportunity, it also comes with the risk of forming bad financial habits that can impact your long-term wealth.
One of the most common mistakes young professionals make is delaying investing. Many believe they should wait until they earn more, but time in the market is far more valuable than timing the market. Starting early, even with small amounts, allows compound growth to work in your favour.
Another pitfall is prioritising spending over saving. Lifestyle inflation can quickly take over, leaving little room for consistent investing. A simple but effective strategy is to “pay yourself first”, allocate a fixed portion of your income to investments before spending on discretionary items.
Chasing quick returns is also a frequent mistake. With the rise of social media and hype around assets like cryptocurrencies, many young investors are drawn to short-term gains. However, sustainable wealth is built through patience, discipline, and a long-term approach.
Holding too much cash is another overlooked risk. While it may feel safe, cash loses value over time due to inflation. Investing in growth assets such as equities or property, despite short-term volatility, offers better long-term potential.
Lastly, trying to time the market often does more harm than good. Consistent investing, regardless of market conditions, typically yields better outcomes than attempting to predict highs and lows.
Building strong financial habits early on sets the foundation for long-term success. Start early, stay consistent, get professional help, and focus on the bigger picture; your future self will thank you.
With rising living costs, how can I balance my short-term financial responsibilities with long-term investing goals? Charl Jooste, Wealth Adviser, PSG Wealth, Hyde Park Financial Planning
High living costs in South Africa keep rising, increases in fuel, electricity, water, rates, taxes, and medical aid fees mean most people struggle to meet their monthly savings and financial responsibilities.
Despite these high living costs, it remains of the utmost importance to consult a financial adviser regularly to understand what you need to save to afford retirement. From there, start to work your budget in reverse.
First, determine what portion of your income you can afford to save without regularly having to tap back into those savings. Then have a look at your bank statement over the last three or six months. From there, highlight all your needs in red; these would typically be your insurance, medical aids, food, electricity, water, rates, and taxes, etc. Have a hard look at these to see where you can save a few Rand every month. For example, consult your financial adviser on a cheaper medical aid plan that still meets your medical needs, try to use less electricity, not keeping your geyser switched on all the time makes a big difference, or rather pack a lunch from home instead of buying it from a fast-food restaurant. After putting away your savings and meeting your financial responsibilities, the remaining funds should be used to build an emergency fund for when those big, unexpected expenses come up.
In short, the best way to balance your short-term financial obligations with your long-term financial goals, is to manage your spending on short-term responsibilities using the excess funds after saving for those long-term goals.
What are some of the most common mistakes that lead to rejected claims, and how can I avoid them? Ryno de Kock, Head: Distribution at PSG Insure
There is a common misconception that having insurance automatically guarantees a successful claim. Claims are often rejected due to everyday misunderstandings about cover, exclusions and policy obligations.
One of the most common reasons for rejected claims is a lack of understanding around policy exclusions. Many policyholders do not review their policies in detail and only discover at claims stage that certain risks, such as natural disasters or cyber incidents, are not covered. This is where guidance from an insurance adviser is critical.
Inaccurate or outdated information can also impact claims. Underinsurance remains a major concern in SA, particularly in a rising‑cost environment. If assets are insured below their replacement value, payouts may be reduced. It is equally important to disclose any changes to your insurer, such as renovations, new equipment or changes in business operations.
Delayed reporting and unpaid premiums are further common causes of rejected claims. Most policies require incidents to be reported within a set timeframe, and cover may lapse if premiums are not paid on time. Proactive engagement with your adviser and regular policy reviews remains the best way to avoid costly surprises.
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