THE “WHY” OF INVESTING

Dear Client

Good day and welcome to the July 2025 edition of FC Viewpoint.

In investing, lasting success isn’t built on luck—it’s built on patience, consistency, resilience, and remembering that the most valuable outcomes won’t come quickly…but they do come.

IN THE NEWS:

  • The JSE All Share Index is on 97 230 on 10 July 2025.
  • 1 US Dollar will cost you R17.75; 1 Pound = R24.17 and 1 Euro = R20.84.
  • Annual consumer inflation (CPI) is at 2.8%.
  • The prime lending rate in SA is currently 10.75% per annum.
  • The price of Oil is $67 per barrel.

THIS MONTH’S TOPIC: THE “WHY” OF INVESTING

Why do we invest?

Retirement Planning: A primary driver for many, South Africans invest to build a nest egg that will provide financial security in their later years.

Wealth Accumulation/Capital Growth: Individuals aim to grow their assets over time to achieve financial independence or meet larger financial aspirations.

Funding Major Life Events: This includes saving for a down payment on a house, a car, children’s education, a wedding, or a significant holiday.

Generating Passive Income: Some investments are chosen to provide a regular income stream, which can supplement their primary income or be a sole source of income in retirement.

Diversification: Investors seek to spread risk across various asset classes (e.g., stocks, bonds, property) and potentially different geographies to protect against local market volatility.

Inflation Protection: With concerns about rising living costs, South Africans look for investments that can outpace inflation and preserve their purchasing power.

The basic idea of investing is that you must have a reason or a purpose for what you are doing. If you have a purpose, then you have a driving force behind your actions. And if there is a driving force that you believe in, it will be much harder for a situation to derail you from your course.

Here are three reasons it is important to understand your “Why” before you begin investing.

  1. KNOW YOUR TIME FRAME
  2. KNOW YOUR PURPOSE
  3. AVOID DISTRACTIONS

TO CONCLUDE

Throughout your investing timeframe, there will be many things that attempt to sidetrack you from your path,
and it will be your ability to stay the course that will ultimately dictate your success or failure.

Keep well and keep investing!

Wealth regards,

Fanie Jansen Van Vuuren CA (SA), CFP®

Director: FC Wealth and Investments (Pty) Ltd

E: [email protected]  |  T: 083 384 5868

W: www.fcfin.co.za

Download this issue of Viewpoint here