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Wendy Myers | Why shares are the most important building block to leaving a lasting financial legacy

Wendy Myers | Why shares are the most important building block to leaving a lasting financial legacy
03-11-23 / Wendy Myers

Wendy Myers | Why shares are the most important building block to leaving a lasting financial legacy

The investment landscape is ever changing and extremely dynamic, but those who are prepared to take the time to understand the basic principles and different asset classes stand to gain significantly over the long term. Cash, bonds, unit trusts, exchange traded funds and shares are the common building blocks for investors to consider, and each contributes towards portfolio performance in a different way. For investors looking to leave a legacy for the long term however, shares are the single building block that have historically proven to deliver.  In this article I outline six key benefits of investing in shares to create a lasting legacy.  

Building a nest egg

Investing in shares allows you to build a substantial nest egg over time. By strategically selecting quality companies to invest in for the long term, and managing your portfolio effectively, you can grow your wealth and work towards achieving your long-term financial goals.

Providing independence and flexibility

Investing in shares provides investors with financial independence and flexibility. It gives you the freedom to make decisions based on your investment preferences, adapt your portfolio to changing market conditions, and generate income through capital growth and dividends.  Dividends are reinvested in the market, which provides you with the added benefit of generating compounding growth in your portfolio.

Creating a legacy

Shares offer the opportunity to create a lasting legacy. By investing in companies that align with your values and long-term vision, you can leave behind a financial legacy for future generations and support causes that are important to you.

Providing comfort through life changes

Investing in shares can provide comfort during changing circumstances in life. Your share portfolio can serve as a stable financial anchor, helping you to weather economic fluctuations, achieve stability during career transitions, and navigate personal life changes with confidence.

Providing income to support your lifestyle

A well-managed share portfolio can generate income to support your desired lifestyle. Dividends from profitable companies can provide a regular income stream that complements other sources of income and supports your financial goals.

Looking after loved ones

Shares can also be a means of looking after your loved ones. By strategically investing and managing your portfolio, you can build wealth that can be passed on to your family, providing them with financial security and opportunities for the future.

While establishing an initial financial plan is undoubtedly important, the significance of regular meetings and communication with a qualified financial adviser cannot be understated. Whether you already have an existing portfolio, wish to start one, or have inherited shares through an estate, a financial adviser can assist you in ensuring your direct shareholdings are robust and aligned with your desired outcomes, and help you to structure your portfolio optimally to ensure you are well positioned to achieve your long-term financial goals.

*Wendy Myers is Head of Securities at PSG Wealth.  

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