Building and protecting wealth

By Warwick Managing Director, Marc Wiese, Warwick Wealth Matters – May 2025

Dear Clients and Partners,

As we welcome the cooler months of the year, I would like to extend warm greetings to all our valued clients and colleagues across the Warwick Wealth family. The year is already well underway, and it is encouraging to see the continued growth in client engagement and the trust placed in us to guide you along your financial journeys.

In this edition, I would like to focus on a subject that lies at the heart of everything we do, the value of qualified and experienced financial advice, especially as it relates to building and protecting wealth for retirement and beyond.

Financial Advice: Your Most Valuable Asset

Whether you are actively saving for retirement or already enjoying your golden years, a skilled financial advisor plays a crucial role in helping you achieve your financial objectives. Retirement planning is no longer a simple equation. It involves careful consideration of multiple factors such as tax efficiency, liquidity, estate structures, risk, and of course, personal circumstances.

For example, one of the most effective tools while saving towards retirement is a retirement annuity (RA). Apart from encouraging disciplined long-term saving, contributions to an RA can provide significant tax deductions of up to 27.5% of your taxable income (capped at R350,000 per year). Depending on your marginal tax rate, you could benefit from tax savings of up to 45% on these contributions. Over time, this creates a powerful compounding effect on your retirement capital, directly enhancing your post-retirement lifestyle.

But financial planning doesn’t end at retirement. In fact, it becomes even more nuanced. It’s vital to strike the right balance between compulsory (retirement) and voluntary (discretionary) investments to ensure adequate liquidity in retirement. Without proper planning, retirees may find themselves asset-rich but cash-poor, leading to difficult decisions when funds are needed most.

A foundational element of financial planning is understanding your risk profile, being your ability and willingness to endure market volatility, and your required return based on future goals. This is not static and should be reviewed regularly as life circumstances evolve.

Once your risk profile is established, aligning it with the correct asset allocation is critical. If your portfolio is too conservative relative to your risk tolerance and investment horizon, you may miss out on essential growth. On the other hand, an overly aggressive portfolio might subject you to significant drawdowns, especially problematic when you need to draw income, effectively locking in losses.

Navigating a Complex Landscape

Over the past three decades, the financial and investment landscape has become increasingly complex. There are now countless investment vehicles, regulatory frameworks, tax considerations, and estate planning strategies to navigate. Market volatility has also increased, driven by the constant and rapid flow of information. As the environment evolves, so too does the need for expert, up-to-date advice.

Given this complexity, having a well-qualified financial advisor, supported by a team of industry specialists, has never been more important. At Warwick Wealth, our advisors work closely with leading professionals, including discretionary fund managers, economists, political analysts, and fiduciary experts to ensure our clients receive comprehensive, world-class advice.

Our partnership with Orion Investment Managers (OIM) allows us to draw on additional investment expertise, while Appleton Fiduciary Services offers dedicated estate planning and administration support. Together, we ensure that your portfolio is not only well-managed, but also aligned with your long-term legacy planning.

Welcoming New Advisors to the Warwick Family

Lastly, I am pleased to welcome several new advisors who have recently joined the Warwick Wealth family:

• Edward and John Dalton (Oudtshoorn)
• JD van Reenen (Mossel Bay)
• Judith Heyns (Gauteng)
• Christiaan Bekker (Beaufort West)

Each of these professionals brings with them a wealth of experience and a deep commitment to delivering the highest standard of client service. We are excited to have them onboard and look forward to the continued value they will provide to clients within their regions.

As always, thank you for your continued trust in Warwick Wealth. We remain committed to walking alongside you every step of the way—helping you grow, protect, and preserve your wealth.