Interest Rates, Economy and my Future

7/7/2011 11:45:06 AM

On this subject I wish to address financial fitness. Herein referred to as the “ability to continue your newly acquired financial prudency skills to secure your future financial security.

If you were to ask 10 economists today what the future of the South African economy is then you’ll probably get 10 answers – even our learned Reserve Bank Governor, Me Gill Marcus, acknowledge the fact that nobody know why the South African but also why the World’s economy lacks direction.

But I actually wish to address your financial longevity! Meaning how can the lessons learned over the past 2 to 3 years guide us in our plans to provide for the future. Fact is we have all (or then most of us) had to learn how to cope with less or how to create more out of less. So the challenge to all of us would be how we can continue this shrewdness into the future. Let us thus use these newly acquired “skills” and continue with today’s budget and as matters improve use the surplus to either reduce expensive debts (credit cards/personal loans) but mostly to accelerate our provisions for retirement. Known fact that most of us cannot afford to retire one day but still we fail to plan as we are so focused on living life to the fullest today that when we do manage to be alive at retirement age – then that we end up finding ourselves mostly worth more dead than alive.

Interest rates would not always stay so low – economic growth, inflation and exchange rates would finally leave us as out of pocket as we are today with even less willingness then to save for our futures. My advice to us all (and note that I am including myself here) are that you contact your Financial Advisor today and that you set up an opportunity to review your complete portfolio – but do include all your long and short term liabilities, assets – liquid and fixed, along with your risk policies – short term and life and start planning as to how you can optimise/stretch/maximise returns on each rand earned now, tomorrow and next week.

Remember that statistics are showing that we are all living longer and thus would need ever growing financial resources and believe you me when you are old …… then realise you are all on your own would be too late! Better late than sorry does not apply to your finances……