Real Estate Investor Magazine South Africa March 2014 | Page 50

INVESTMENT INSIGHT

The power of planning

BY SCOTT PICKEN

How to benefit from the rand slide

T

he rand lost 24.08% against the US
dollar in 2013. This has a direct and
critical impact on your wealth and yet
most South Africans are not aware of what
happened or what to do about it. Everyone
continues to go to work, put in the hours,
set the targets and does what is necessary to
succeed and yet in the bigger picture they are
actually going backwards and unless they do
something consciously, no amount of hard
work can counteract the long-term trends. The
bottom line is that if you earn all your income
and hold all your assets in rands, unless you
made a return greater than 24.08% last year you
actually lost money and you might as well have
gone and spent the year on the beach!

However as South Africans, our Global
Wealth according to the Global Wealth
Inde x T M ha s dec l i ned by 29.5% p er
y e a r c omp o u nd e d s i nc e 19 8 3. I n t he
internationally recognised book, Property
Going Globa l, Scot t Picken and Clem
Sunter use some of the most advanced
and sophisticated systems to understand
these impacts and to offer South Africans
safe solutions to actually use this to their
advantage.

An example of how one can use this to one’s
advantage: Using the Global Property System
TM – your GPS for global property investment,
can guide you without emotion as to where the
best places globally to invest are based on risk,
return and fundamentals. Using some of the
most advanced models, scenarios and systems
globally, this system shows investors the best
places to invest. In 2013 it was overwhelmingly
investing in the USA as can be seen from the
diagram below.

What is wealth? Wealth is freedom and it is
the ability to make the choices you want for you
and your family. Wealth is what most people
are chasing and it is different for everyone, but
essentially it is freedom. global wealth is the
ultimate freedom as then you can make any
choices no matter what. You can choose where
you want to live, where you want your children
to go to school and university, where you want
to go on holiday and anything else which is
important to you.
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March 2014 SA Real Estate Investor

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