Page 17 - DUT CONNECT Summer 2024

FOR Alumni and Friends OF THE DURBAN UNIVERSITY OF TECHNOLOGY
6 CONSIDERATIONS FOR WEALTH MANAGEMENT
Growing, Protecting, and Sustaining Wealth requires a combination of financial knowledge, strategic planning, and disciplined execution. Here’s a comprehensive framework:
GROW WEALTH
1. Invest wisely: Diversify across asset classes (stocks, bonds, real estate, etc.).
2. Maximise tax-advantaged accounts (e.g., RA Tax free investments).
3. Build multiple income streams
(e.g., dividend-paying stocks, rental properties).
4. Develop valuable skills or businesses. 5. Leverage compound interest.
PROTECT WEALTH
1. Diversify investments to minimise risk.
2. Maintain an emergency fund (3-6 months' expenses).
3. Insure against unforeseen events (life, disability, liability). 4. Monitor and adjust asset allocation.
5. Consider hedging strategies (e.g., options, futures).
SUSTAIN WEALTH
1. Develop a long-term financial plan.
2. Set clear financial goals and priorities.
3. Foster a culture of financial discipline.
4. Educate family members on wealth management. 5. Review and adjust strategies regularly.
ADDITIONAL STRATEGIES
1. Tax optimisation (e.g., tax-loss harvesting).
2. Estate planning (wills, trusts, inheritance).
3. Philanthropy (charitable giving, donor-advised funds). 4. Business succession planning.
5. Risk management (cybersecurity, insurance). KEY PRINCIPLES
1. Start early and be patient.
2. Live below your means.
3. Avoid debt.
4. Build multiple income streams. 5. Stay informed and adaptable.
RECOMMENDED BOOKS
1. "The Intelligent Investor" by Benjamin Graham. 2. "A Random Walk Down Wall Street"
by Burton G. Malkiel.
3. "The Simple Path to Wealth" by JL Collins.
4. "The Essays of Warren Buffett: Lessons for Corporate America."
5. "The Millionaire Next Door" by Thomas J. Stanley. *Wealth Management
Old Mutual has many free online tools that concentrate on financial literacy, including the ON THE MONEY programme and a podcast, to help people manage money well and achieve financial stability.
There are also various initiatives to promote financial literacy, such as the financial literacy programme, Money Smart Week, by the National Treasury, and the Financial Sector Conduct Authority (FSCA).
Yegan Reddy
Business Development Manager KZN | PFA
Responsible for Public, SOE and Private Enterprises
T. 031 581 0673 C. 082 658 4745 E. yreddy@oldmutual.com | oldmutual.com
Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer.
OMBDS 11.2024 C12134