Category: MARKET

Most people think of risk tolerance as a score, something you get from ticking boxes on a questionnaire. Conservative. Balanced. Aggressive. Or a mixed blend.

However, the truth is that risk tolerance isn’t static. It’s not a number etched in stone or a label that defines you forever. It’s a living, evolving measure that is shaped by your emotions, your experiences, and the season of life you’re in.

You may have been comfortable taking risks in your twenties that would feel reckless now. Or maybe, after a few tough years, you’ve become more cautious. Not because you’ve lost confidence, but because your priorities have changed. That’s natural.

We see this all the time. Someone who once considered themselves a high-risk investor suddenly becomes uneasy after a market dip. It might not be because the fundamentals have changed, but because their emotional response to uncertainty has caught them off guard.

Others grow into risk. A conservative investor who’s been slowly building confidence may start to realise that taking some risk is essential if they want their wealth to outpace inflation and support their long-term goals.

None of this is wrong. It just means that your risk tolerance needs to be revisited — and respected — over time.

This is why we talk about risk in more human terms, not just technical ones.

Yes, risk can be measured with considerations like standard deviation, downside capture,and volatility. But it’s also about how you feel when markets dip. What keeps you up at night? What makes you hesitate to invest more? What trade‑offs are you willing to make to reach your goals?

Your risk profile is not just about how much you can afford to lose; it’s also about how much you’re emotionally willing to see fluctuate without abandoning the plan. The goal of financial planning isn’t to push you to the edge of your comfort zone. It’s to help you grow within it.

And as your life changes — career shifts, children growing up, nearing retirement, going through loss or transition — your feelings about risk may shift too. That doesn’t mean you’ve become irrational. It means you’re human.

That’s why we believe risk conversations shouldn’t happen once. They should be ongoing and woven into our reviews, our decisions, and your life’s transitions.

So if you’ve been feeling uneasy about your investments or wondering if your plan still fits the person you are today, let’s talk. This is how we move beyond finding the right returns and focus on finding the right rhythm.

When we hear the word “diversification,” most of us think of investments, spreading money across different asset classes, industries, or markets to reduce risk. And for good reason. Diversification is one of the core principles of sound investing.

But what if we zoomed out?

What if diversification wasn’t just something we did with our portfolios, but something we applied to life itself?

The truth is, many of the same risks we try to manage in our investments show up in other areas, too. And just like putting all your money into one stock can be risky, so can putting all your financial hopes into a single source of income, a single plan, or a single version of the future.

Let’s take income, for example. If all your income comes from one employer or one client, you’re vulnerable. A sudden change, like restructuring, illness, or a shifting market, can leave you exposed. But if you’ve built up multiple income streams, or even just a well-funded emergency reserve, you’ve fortified more resilience.

The same applies to career paths. We often plan in straight lines: get qualified, build experience, work toward retirement. But life isn’t linear. Diversifying your skills, staying open to new industries, or investing in your own learning can create flexibility when the unexpected happens… and it often does.

Estate planning is another area where this broader lens matters. Many families assume everything will “just work out”, but without a clear will, a power of attorney, or open conversations with loved ones, things can unravel fast. Diversifying your estate planning strategy might mean combining tools: a trust, a testamentary will, living directives, family meetings. It’s about ensuring there’s not just one option.

Even lifestyle choices play a role. If your happiness, health, or identity is tied solely to your career or wealth, a single disruption can shake your sense of self. But if you’ve invested in your relationships, your wellbeing and your passions, you have more to draw from when life shifts gears.

Diversification, at its core, is about reducing risk by building flexibility. It’s not about hedging your bets with fear; it’s about broadening your base so that no single event can knock you over.

So yes, keep your investment portfolio diversified. But also ask:

• Where else am I overexposed?
• What single points of potential fallout have I ignored?
• What small steps can I take to mitigate risk and build resilience?

Financial planning isn’t just about growing wealth. It’s about building a life that can adapt, bend, and thrive, no matter what comes next.

When markets get turbulent or headlines turn grim, many people instinctively retreat to cash. It feels safe, predictable, tangible, and readily available. There’s no volatility, no chance of “losing” money overnight.

And for certain purposes, cash is exactly what you need. It’s essential for covering short‑term expenses, building an emergency fund, or giving yourself flexibility during life’s unexpected moments. In these situations, cash is not just safe; it’s smart.

But as comforting as cash feels, holding too much of it for too long can quietly put your financial health at risk.

The biggest reason? Inflation.

While the amount in your account stays the same, its value (ie. what it can buy) gradually erodes over time. Even moderate inflation can eat into your savings faster than you might expect. A basket of groceries, a tank of fuel, or a year of tuition costs more every year, yet cash sitting idle in a low‑interest account struggles to keep pace.

Another risk of holding too much cash is opportunity cost. Money that could have been working for you, growing through investments or earning higher returns elsewhere, sits on the sidelines, missing out on potential gains. Over years or decades, that missed growth can make a big difference to your long‑term goals.

So how much cash should you hold?

The right answer depends on your situation, but here are some principles to consider:

  – Keep an emergency fund. Typically 3 to 6 months of essential expenses — in cash or near‑cash investments. This helps you handle sudden job loss, medical bills, or unexpected repairs without having to sell investments at the wrong time.

  – Maintain enough cash for planned short‑term needs like a house deposit, a big holiday, or upcoming school fees.

  – Beyond that, think carefully about whether excess cash could be working harder for you elsewhere.

Cash isn’t “bad,” but it works best as part of a broader plan and not as the whole plan. It’s one of many tools, alongside investments, insurance, and other strategies, that help you balance safety and growth.

If you’re unsure whether you’re holding the right amount of cash, or if you’re worried about taking the next step into investments, then please book a catch up soon.

Together we can create a plan that gives you the peace of mind of having cash on hand when you need it, while also making sure the rest of your money is moving you closer to your goals.

If you’ve ever looked at your portfolio during a market crisis, like March 2020, you may have noticed something unsettling: everything seemed to fall at once.

Stocks dropped. Bonds wobbled. Even “safe” assets felt shaky.

It’s a scenario that can leave even experienced investors wondering, “Isn’t diversification supposed to protect me from this?”

It’s a fair question, and the answer is both yes and no.

Diversification is one of the most powerful tools in investing. By spreading your money across different types of assets (stocks, bonds, property, cash, and more) you reduce your exposure to any single risk. Under normal circumstances, these assets don’t all move in the same direction at the same time. When stocks fall, bonds often rise. When one region struggles, another may hold steady.

However, in moments of extreme stress — such as a global financial crisis, a pandemic, or a geopolitical shock — fear can take over, and everything becomes interconnected. Investors rush to cash, selling whatever they can, and the usual relationships between assets temporarily break down.

So does this mean diversification doesn’t work? Not at all.

These extreme moments are rare and usually short‑lived. Over time, diversification still does its job: reducing risk, smoothing returns, and giving you a better chance of reaching your goals without taking unnecessary bets.

Think of it like a sturdy boat in rough seas. When a sudden storm hits, even the best boat will rock, but it’s still far safer than a canoe. And when the storm passes, it’s that well‑built, balanced boat that gets you to shore.

It’s also worth remembering that diversification isn’t about avoiding all losses; it’s about making sure the losses you do experience are manageable, and that you’re positioned to recover when markets calm down.

The key is not to panic. Selling everything during a storm often locks in losses and removes your chance to benefit from the recovery, which, historically, has often come quickly and unexpectedly after a crisis.

If you’ve been feeling uneasy about your portfolio, it might help to revisit your plan. Are you diversified across different asset classes, geographies, and sectors? Is your mix aligned with your goals and your comfort with risk?

Together we can help you answer those questions, and to remind you that even when it feels like everything is falling at once, the principles of good investing haven’t changed.

The storm will pass.

If you’d like to talk about how your portfolio is positioned, or simply need reassurance about staying the course, let’s chat.

Tax season is stressful enough without someone trying to steal your refund, or your identity. Yet every year, as millions of people file their returns, scammers ramp up their efforts to cash in on confusion, fear, and urgency.

From Australia’s AI‑powered phishing emails to fake SARS refund sites in South Africa and HMRC impersonators in the UK, tax‑season scams are on the rise globally. Even the US IRS reports hundreds of thousands of identity‑theft cases tied to tax returns each year.

So how do these scams work and how can we avoid becoming a victim?

Scammers exploit the fact that tax season can feel rushed and complicated. They’ll send fake emails, SMS messages, or even use deep‑fake phone calls pretending to be from your tax authority. These often claim you’re owed a refund or have made an error that needs immediate payment. Others pose as “tax preparers” offering help, but instead file false claims in your name and pocket the refund.

It’s not just the method, it’s also the psychology. Scams are designed to make you panic or tempt you with a “too good to miss” refund. If you don’t pause to verify, you can end up sharing sensitive information, paying fake penalties, or even claiming bogus credits that could land you in trouble later.

Here are some common warning signs that a tax communication may be fraudulent:

1. It demands immediate payment or threatens legal action.
2. It promises a bigger‑than‑expected refund or special credits you’ve never heard of.
3. It arrives via email or text with suspicious links or attachments.
4. It requests login details, full bank information, or payment in gift cards or wire transfers.
5. The person contacting you can’t prove they’re a registered professional.

The good news? A few simple habits can help protect you and your return:

• Always verify any message through your official tax authority’s website or helpline before responding.
• File your return as early as possible as it reduces the window of opportunity for fraudsters to file in your name.
• Use secure tax portals and enable multi‑factor authentication wherever you can.
• Keep strong, unique passwords (a password manager can help) and avoid sharing sensitive details by email.
• Work only with vetted, registered tax preparers. “Ghost preparers” often leave clients exposed to penalties and theft.

And most importantly, if something feels off, don’t click, don’t reply, call the tax office directly.

We also recommend sharing this message with friends and family who may be more vulnerable to scams. Especially older relatives or those filing for the first time.

Remember: your peace of mind is almost always worth more than any refund.

When markets get choppy, it’s natural to feel nervous. Everyone with a heart (and subsequent blood pressure…) will have a tinge of fear when volatility hits. You might see headlines shouting about “billions wiped off the market” or watch your portfolio dip and wonder if you should pull back until things settle.

Again, you’re not alone. Most investors feel uneasy when the value of their investments swings — sometimes sharply — in a short time. But here’s the truth: volatility isn’t a flaw in the system. It’s a feature. And more than that, it’s the price of admission to the long-term growth you’re aiming for.

In simple terms, volatility is just a measure of how much investment prices move over a given period of time. The more prices move up and down, the more volatile an investment is said to be. Shares in a company, for example, can rise or fall dramatically in a single day based on news, earnings reports, or market sentiment.

Bonds, on the other hand, usually move more slowly and predictably, but they also tend to deliver lower returns over time. The reason is simple: the greater the potential reward, the more uncertainty (and therefore volatility) you have to accept along the way.

It’s tempting to wait for things to calm down before you invest, or move everything into cash until the dust settles.

But the problem with that approach is that markets don’t send an invitation when it’s time to get back in.

Some of the best days in the market often come immediately after some of the worst. If you’re sitting on the sidelines when that rebound happens, you miss it; and missing even a few of those strong days can significantly weaken your long-term returns. Avoiding volatility entirely typically means sticking with low-risk, low-return options, such as cash or fixed deposits. Those have their place, especially for short-term needs, but over the long haul, they often fail to keep up with inflation and leave you with less purchasing power.

One way to think about volatility is like turbulence on a flight. You don’t love it, but it’s part of the experience of getting where you want to go. The key is to simply fasten your seatbelt, trust the plan, and remember that you’re moving toward your destination. Your portfolio is designed with your goals and risk tolerance in mind, balancing growth potential with your comfort level. Volatility doesn’t mean the plan is broken; it means the market is doing what it has always done.

If you’re finding the current ride uncomfortable or have questions about how much risk is right for you, let’s talk. Together, we can make sure your plan still suits your goals, and help you stay the course through the ups and downs.

When you look at your investment portfolio, it’s tempting to focus on what’s “winning” right now. You might notice one fund doing well and another lagging behind, and think: “Why am I holding on to this underperformer?”

That’s a natural reaction, but it misses the point of diversification.

In a properly diversified portfolio, there will almost always be something that looks disappointing in the short term. That isn’t a flaw; it’s the design. And understanding that design can make it easier to stay the course, even when parts of your portfolio feel like they’re falling behind.

Here’s why patience is part of the plan.

Different assets, different seasons

By definition, diversification means owning different kinds of investments (stocks, bonds, property, cash, and maybe even alternatives) because they tend to behave differently at different times.

When stock markets are booming, bonds may look dull. When markets are rocky, bonds or cash may hold their ground while stocks struggle.

The point isn’t to always have everything performing at its best at the same time. The point is to ensure you never have everything performing at its worst at the same time.

Chasing performance often backfires

It’s easy to feel impatient and want to sell the “losers” in your portfolio. But what feels like a loser now may become the winner tomorrow, and by the time it does, it’s often too late to jump back in.

Studies have shown that investors who chase last year’s top performers often end up buying high and selling low, which erodes long-term returns.

Patience, on the other hand, allows you to capture the benefits of the entire cycle, not just the exciting moments.

Time does the heavy lifting

Over a single year or two, markets can feel random and unpredictable. Over decades, patterns emerge.

The more time you give your investments, the more chance you have to see the intended benefits of diversification play out. Time smooths out the bumps, turning what looked like short-term noise into long-term progress.

It’s normal to feel uneasy when parts of your portfolio seem to drag. That’s when having a plan, and a guide, becomes invaluable. We’re here to help you understand why you own what you own, how it fits into your goals, and how to measure progress without getting caught up in the daily swings.

If you’re feeling impatient, or wondering if your portfolio is still on track, let’s talk.

Sometimes, the most effective strategy isn’t doing more; it’s staying committed to the plan you already have.

When markets are stormy, it’s easy to question whether diversification still works.

You might look at your portfolio and think, “Everything seems down; what was the point of spreading my money around?” Or during a market rally, you might wonder, “Wouldn’t I have been better off just putting everything in the top-performing stock or fund?”

These are reasonable questions, and they get to the heart of why diversification is both essential and, at times, uncomfortable.

Diversification isn’t about always being “up” or always beating the market. It’s about managing risk over time and smoothing the ride as much as possible.

At its core, diversification means not putting all your eggs in one basket. Instead of betting everything on one company, one country, or one type of asset, you spread your investments across a mix of assets that are likely to behave differently in different conditions.

Here’s why that matters…

– Different assets perform differently at different times. Stocks, bonds, property, and cash each respond to the economy in their own way. When stocks stumble, bonds often hold steady or rise. When one sector booms, another may lag.

– You can’t predict the winner. Even professionals can’t reliably pick which stock, fund, or market will outperform next year. Diversification accepts that uncertainty and plans for it.

– It limits how much a single mistake or event can hurt you. If one company or sector collapses, a diversified portfolio is less exposed and more resilient.

One reason diversification feels frustrating is because something in your portfolio is always underperforming. And that’s actually a sign it’s working. If everything in your portfolio is moving up or down in perfect unison, you’re probably not truly diversified.

Another reason is timing. Diversification plays out over time, seldom in any single year. Markets move in cycles, and the benefits of being diversified often show up only after a full cycle has played out.

One way to think about it is like a balanced diet. You could eat only chocolate for a week and feel fine, but over months and years, you’d pay the price. A diversified portfolio, like a healthy diet, gives you the best chance of long-term health, even if it’s not as exciting or satisfying in the moment.

If you’re unsure whether your portfolio is truly diversified, or if it’s still aligned to your goals, let’s have a conversation. Together we can help you understand what you own, how it works together, and how it protects you over the long term.

In investing, as in life, resilience comes from balance, not from betting it all on a single outcome.

Why don’t we always do what’s “best” with our money? Let’s be honest: most of us already know what we’re “supposed” to do with our money. But we don’t do it.

Spend less than we earn. Save consistently. Invest for the long term. Avoid unnecessary debt.

So why don’t we always do it?

Why do we promise to start budgeting next month, then swipe the card anyway? Why do we panic when markets dip, even when we know staying invested is usually the smarter move?

The answer lies in something economists and psychologists have been studying for years: we’re not rational decision-makers. We’re human.

And that’s where behavioural economics comes in.

Popularised by books like Nudge, by Richard Thaler and Cass Sunstein, this field explores how our decisions are influenced, not just by logic, but by emotion, habit, environment, and even how choices are presented to us.

Here are a few key biases that show up time and again in financial planning:

1. Loss aversion

We feel the pain of a loss much more intensely than the pleasure of a gain. It’s why we may hold onto a losing investment far too long, or avoid investing altogether, because the fear of “what if it goes wrong?” outweighs the potential benefit of “what if it goes right?”

2. Present bias

We’re wired to value today over tomorrow. That makes it hard to prioritise saving for retirement, even when we know we should. A pair of sneakers today feels more real than a comfortable future 30 years from now.

3. Choice overload

When we’re faced with too many options, investment funds, insurance products, savings accounts, we tend to freeze. We delay, or we default to what feels easiest, even if it’s not the most suitable choice.

4. Anchoring

We latch onto the first number we see. If someone tells you how much your neighbour just bought their house for, that number becomes a benchmark, whether or not it suits your needs or financial reality.

5. Confirmation bias

We search for information that supports what we already believe. If you think the market is about to crash, you’ll find headlines to support that belief, and ignore the ones that don’t.

Understanding these patterns doesn’t make us weak, it makes us human. And when you work with a financial planner who gets that, something powerful happens: instead of being judged or “corrected,” you’re supported.

The best planning doesn’t just help you choose the right funds, it helps you create a system that makes those good choices easier, and those unhelpful habits harder.

That’s what nudging is all about: creating a structure that honours your goals, while gently steering you away from self-sabotage.

Because the truth is, smart financial decisions are often less about intelligence, and more about designing for behaviour.

Let’s build a plan that works with the way you think, not against it.

The true cost of a dollar, Rand or pound (or whatever you’re earning in) is not just what you earn. It’s what you give up to earn it.

On paper, your salary might seem straightforward. $75,000 a year. £5,000 a month. R250 an hour. But those figures don’t tell the full story. What if the number you think you earn is hiding the real cost of how you earn it?

This is the idea behind a powerful (and often overlooked) financial exercise: calculating your real hourly wage. It’s not just about how much money you make. It’s about how much of your life it takes to make it.

And for many people, the answer is eye-opening.

Because once you subtract all the unpaid hours; commuting, replying to messages after hours, recovering from stress…

Once you account for job-related expenses; transport, work clothes, meals, child care, or the odd splurge that helps you “cope”…

Once you consider the physical and emotional toll; fatigue, irritability, missed family moments…

…your impressive hourly rate may shrink significantly.

It might drop by 20%. Or half. In some cases, it might fall so low that you’re working incredibly hard just to stand still.

This calculation isn’t just about the numbers. It’s about context.

It helps you see how much of your life you’re exchanging, not just for a paycheck, but for every decision that flows from it. And it makes this whole journey deeply personal.

That new gadget? It’s not just $300. It’s six hours of your real working life.

A fancy dinner out? Two and a half.

A pair of shoes you bought on a whim? Maybe ten.

This isn’t about guilt. It’s about being more conscious. When you understand the true cost of your time, you start making decisions that align better with your energy, your priorities, and your wellbeing. You can also begin to understand why some decisions make you feel a certain way.

You might find you spend more intentionally. Say “yes” a little less often. Or even redefine what success looks like; not just in income, but in freedom, peace of mind, or time with your kids.

Because money, thankfully, can be earned again.

But your time? Your energy? That’s finite.

So the next time you consider a purchase, or another hour of overtime, don’t just ask what it is buying you.

Perhaps, that’s what truly matters.