Wealth Creation SWOT analysis

It looks like we’re in the midst of a pretty wet and chilly winter which has seemed all the harsher from an economic perspective with interest rates continually rising. This has scared a few homeowners and buyers and so we take a look into some of the pros and cons of selling or buying right now.?

We also look at the benefits of conducting a SWOT analysis on our wealth creation profiles and determining where there may be strengths and weaknesses, what threats we face and the opportunities we have to overcome them. It’s all useful stuff so let’s dive right in…

Interest rate hikes are not necessarily doom and gloom

Many homeowners who bought when interest rates were recently uncharacteristically low may be now regretting their purchase but your property investment can still be very solid and worth holding on to.

Don’t compromise on price?

Remember that if selling when interest rates are high means compromising your asking price then it’s not the right time to sell. Rather stay positive and speak to your bank about an alternate arrangement that allows you to pay over a longer term, thereby reducing the bond payments.

For Home Owners who are on the fence about buying or selling, talk to me and I can advise you according to your current financial situation whether it would be better to consolidate debt and retain the property, or suggest good alternate investments if you decide to sell.

Buyers can go either way?

Buyers right now have the luxury of choice and can either take advantage of a buyer’s market or for those who fear more interest rate hikes and are hesitant to buy I can suggest excellent alternative investments that could pay just as handsomely in your retirement years.

A SWOT analysis of your financial status could serve you well!

No doubt you are all aware of a SWOT analysis - often conducted in businesses to assess the Strength, Weaknesses, Opportunities and Threats that they may be facing.?It’s a great idea to conduct something like this on your Wealth profile too because what it reveals can lead you to make what may be important adjustments.

Threats

We are constantly facing financial threats in a world that is dealing with a global energy crisis and wars - and living in a country that has an ever-weakening rand. Talk to me about the various available offshore investment opportunities as new products are coming into the market all the time.

Strengths

Analysing your portfolio strengths should include ensuring that you are covered in all the important areas of day-to-day living. Do you have financial cushions, like unit trusts that can be drawn on quickly for example, to cover you for those continual ‘extras’’ that plague your budget? Is your portfolio giving you the best possible retirement options, whilst utilising tax-saving vehicles - like Retirement Annuities?

Weaknesses

Critical illness can strike at any time. Does your portfolio include protection like Critical Illness cover and Income Protection to ensure that if the worst happens you are not compromised financially??

Will your family be covered when you are no longer around with a Will or Estate planning? Do you have at least the cheapest and most effective cover of all – Life cover?

Opportunities

Fortunately, for every potential threat we face or weakness we uncover there will always be opportunities to rectify them and this is where I come into it. I can suggest where your weaknesses can become your strengths and how to minimalise threats by recognising the right opportunities.