Mike’s Moments – September 2024 Edition By Mike, The Financial Tech Planner
Michael G Donkor CFP?
I help Tech professionals maximise their income so they can have more fulfilling life experiences. Chartered FCSI | CERTIFIED FINANCIAL PLANNER? |
Hey everyone, welcome to this edition of Mike’s Moments! As a financial planner working closely with tech professionals, I want to not only share financial insights but also personal experiences that shape my outlook on life and financial planning. August was a big month for me—filled with personal milestones, cultural experiences, and professional growth. I hope these experiences resonate with you and offer valuable lessons for your own financial journey.
Lesson of the Month: “Embracing Heritage & Celebrating Milestones”
August marked some incredible moments for me, personally and professionally. I celebrated my 37th birthday (I know what you’re thinking ??) with a lovely dinner and spa day with my family. But the highlight of the month was attending the UK carnival with my wife and kids for the first time. As my wife hails from Dominica and St. Lucia, it was an amazing opportunity to teach our kids about their heritage and immerse them in a part of Caribbean culture (Being Ghanaian, I had my Ghana flag ????, but I took a backseat on this one for the culture).
What I learned from this experience is the importance of acknowledging our roots and milestones—something that can apply to financial planning too. Here are three key takeaways:
2. Celebrate Milestones: Whether it's your birthday or achieving a financial milestone, taking the time to celebrate the small wins can help motivate you to stay on track. After all, financial planning isn't just about numbers—it's about creating a life that feels fulfilling.
3. Plan for Unexpected Moments: As in life, financial surprises happen. Make sure to build an emergency fund that can cover life’s spontaneous adventures or setbacks. My spontaneous moment was buying a vuvuzela at the carnival, which my kids now use continuously to announce themselves into a room in the house ??.
Stock Market Update – August 2024 Recap: Navigating Global Markets
August was an unpredictable month in the stock market, with volatility taking centre stage. Before diving into the specifics, it's essential to understand that the stock market isn’t just about numbers; it reflects a combination of investor sentiment, company performance, and global economic factors. Let's break down some of the key markets, how they performed in August, and what these movements might mean for your investments.
1.? ? MSCI World Index Price: 2,879.46 Year-on-Year Performance: +11.9% A positive year-on-year growth of 11.9% indicates strong global equity markets, driven largely by tech sector growth, resilient earnings, and stabilisation in major economies. Think of the MSCI World Index as a “big picture” view of how developed economies are performing. When this index is up, it usually means companies in developed markets are doing well. Did you know ?? The MSCI World Index was launched on March 31st, 1986. The MSCI World Index tracks the performance of large and mid-cap stocks across 23 developed countries. Investors utilise the MSCI World Index as a tool or benchmark to evaluate the performance of their international equity holdings.?
2.? ? S&P 500 (USA) Price: 4,515.56 Year-on-Year Performance: +8.7% The S&P 500, composed of 500 large companies listed in the U.S., continues to grow, with tech giants like Apple and Microsoft contributing significantly. A positive growth reflects overall investor confidence but be cautious growth can be driven by just a few major players. The S&P 500 is often seen as a gauge for U.S. economic health. However, just because the index rises don’t mean every company is thriving—researching individual sectors or companies is crucial for a clearer picture. Did you know ?? The S&P 500, or Standard & Poor's 500 is a market-capitalisation-weighted index, meaning that the weight of each company in the index is based on its market capitalisation. Interestingly, investors can invest in the S&P 500 through index funds and Exchange Traded Funds (ETFs), which are mutual funds that track the index. Since 1957, the S&P 500 has had an average annualised return of around 10.26%.
3. FTSE 100 (UK) Price: 7,336.72 Year-on-Year Performance: -2.3% The FTSE 100, which tracks the top 100 companies listed on the London Stock Exchange, has seen a slight decline. Factors like higher interest rates and post-Brexit trade complexities may be at play here.?
While a decline might seem concerning, it’s important to consider the broader economic context. Sometimes, short-term drops in markets can present long-term investment opportunities. Did you know ?? The FTSE 100 is informally known as the "Footsie 100", which comes from the sound of the acronym FTSE (Financial Times Stock Exchange). The FTSE 100 is an index that tracks the 100 largest companies on the London Stock Exchange (LSE) by market capitalisation. The FTSE100 was created in January 1984. It replaced the FT30, which was the main index for the LSE at the time. Guessing how long the footsie is being updated? The FTSE 100's price is updated every 15 seconds. Well, now you know!?
4.? ? Nikkei 225 (Japan) Price: 32,619.34 Year-on-Year Performance: +25.4% Japan's Nikkei 225 has had a standout year, driven by innovation in tech and positive corporate earnings. With a 25.4% increase, Japan’s market reflects a growing international interest in Asia’s advanced economies. Did you know ?? The Nikkei 225 often reflects how Japanese multinationals are performing globally. The Nikkei 225 is comprised of 225 stocks selected from domestic common stocks in the Prime Market of the Tokyo Stock Exchange.? It’s an example of how global trade and innovation can impact a country's stock market.?
5.? ? Shanghai Composite (China) Price: 3,085.87 Year-on-Year Performance: -5.2% China's market has faced challenges, including regulatory crackdowns and global trade tensions, reflected in a -5.2% drop. Investors are cautious as China navigates economic slowdowns and policy shifts. Did you know ?? The SSE Composite Index was first introduced in July 1991 by the Shanghai Stock Exchange (SSE). It was established during a period of significant economic reform and growth in China. The Shanghai Composite is a critical index for understanding China’s economy. A dip can be an indicator of both domestic challenges and global investor sentiment towards China.
6. ? MSCI Emerging Markets Index Price: 1,035.60 Year-on-Year Performance: +2.1% Emerging markets, including countries like Brazil, India, and South Africa, have had modest growth. The MSCI Emerging Markets Index offers a broad view of developing economies, which often show higher volatility but can provide higher long-term returns. Did you know ?? The MSCI Emerging Markets Index was launched in 1988, and was one of the first investable indexes. Emerging markets carry more risk due to economic instability and currency fluctuations. However, they can offer growth potential for those willing to accept short-term ups and downs.
Final Thoughts: Whether markets are up or down, the key takeaway is that they are cyclical—what goes up may come down, but over time, the trajectory tends to be upward for well-established indices like the MSCI World or S&P 500. Diversifying your portfolio and understanding these movements helps manage risks and maximises long-term gains.
My August Adventures: A Personal Glimpse
Besides the carnival and my birthday, August also brought some other enriching experiences:?
Client Appreciation Event at Clays Bar, Canary Wharf: On the 9th of August, I hosted an event to thank my clients for trusting me on their financial journey. We had some fun and reflected on the progress we’ve made together. It was a great reminder that building strong, lasting financial relationships is key to success. Just like clay pigeon shooting, you miss all the shots you don’t make, start planning for your future now, invest, grow your funds, and gain advice.
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Wine & Rum Tasting Event: A Unique Experience in South London
Earlier in August, I had the pleasure of attending an Organic Rum Tasting & Cocktail Experience at Marquis Bar, The Africa Centre in South London. It was an evening filled with rich flavours, great company, and insightful conversations.
This event was not just about indulging in fine rum and expertly crafted cocktails, but also a reminder of the importance of enjoying life’s finer moments while balancing financial responsibilities. It highlights that financial planning is about creating opportunities for enjoyment and fulfilment, without compromising long-term goals.
It reminded me that, just like financial planning, there’s always something new to discover, whether it’s about investments or new cultures. I encourage you to stay curious about your financial options and keep exploring new strategies for wealth building. Everyone doesn't need to buy a house or Build a business. But you should at least have a plan, so you're prepared when something new comes up.
Optimising Holistic Financial Wellness & Making Residential Real-Estate Work for You
In August, I had the privilege of speaking at the "Optimising Holistic Financial Wellness & How To Make Residential Real-Estate Work For You" event at the University of London, organised by Prosperfy. The event brought together a fantastic panel of speakers from various industries, including psychology, real estate, and financial wellness.
At the event, Gerald Boateng (LinkedIn) introduced "The Long Term", the financial management app we co-founded. The Long Term is designed to help graduates and professionals create sustainable wealth through goal-focused financial planning, with an emphasis on a holistic approach to financial wellness.
Alongside experts like Dr. Trudi Edginton and Dr. Tony Ofori, we explored strategies to optimise financial health, manage real estate investments, and prioritise wellness. It was a rewarding experience connecting with students and graduates, sharing insights on financial literacy, and offering practical advice on building wealth in a balanced, holistic way.
For a full recap and key takeaways from the event, check out the Speaker Series Event Highlights.
Tech Industry Highlights: September’s Hot News
What Next?
Looking to take your financial planning to the next level? Here are a few ways you can get started:
Parting Thoughts
As I look back on August, I’m reminded of the balance between personal joy and professional success. Just like I took time to celebrate milestones with my family, you should celebrate your financial achievements, no matter how small. And don’t forget—planning for the future is important, but so is enjoying the present.
Let’s keep pushing toward your financial goals together, and as always, feel free to reach out if you need advice or support.
“Whether you think you can, or you think you can't – you're right.” – Henry Ford
Until next time, Mike Your Financial Tech Planner Same Mike time, same Mike channel.
Information Science & Technology
2 个月Well done. Interesting stuff.