BUSINESS NEWS - A lot is changing in the world, and with it, the way money moves.

For a region such as the Garden Route, which has experienced significant growth and an influx of new residents in recent years, those changes are also reflected in the financial decisions people are making.

Alan Shannon, Executive: Private Clients and Small Business at Nedbank Private Wealth, spoke about some of these trends during a recent interview in George, including the decision to expand the bank's private wealth offering into the region.

Shannon said the growth experienced by George and the wider Garden Route, particularly since the COVID-19 pandemic, had highlighted an opportunity to bring more specialist financial expertise to the area.

He also emphasised the importance of looking at financial decisions as part of a bigger picture.

“Life throws events your way,” Shannon said, explaining that one financial decision can often have implications elsewhere.

He said specialist advice can help people consider those consequences, particularly as they navigate major life events and decisions around accumulated wealth.

Start investing early

One of Shannon's key messages was aimed at younger people: don't underestimate the value of starting early.

He used a hypothetical example to demonstrate the power of compound growth.

Someone investing R1,000 a month from the age of 18, assuming a nominal return of 10% per year, could accumulate approximately R6.5 million by the age of 60.

By comparison, someone starting at age 40 and investing three times as much, at R3 000 a month, would accumulate approximately R2.5 million by age 60 under the same assumption.

The example illustrates the role that time can play in growing an investment.

As Shannon put it, if you haven't planted the tree 25 years ago, the next best time is now.

Looking beyond South Africa

International investing was another topic discussed during the interview.

Lauren Rodseth, Head of International at Nedbank Private Wealth, spoke about the opportunities available to South Africans wanting to invest or transact internationally, as well as some of the considerations around doing so.

She said one of the misconceptions is that investing internationally is necessarily complicated.

The South African Reserve Bank's single discretionary allowance has increased from R1 million to R2 million, allowing qualifying South Africans over the age of 18 to remit up to R2 million abroad in a calendar year, subject to the applicable requirements.

For those considering international investments, Rodseth highlighted the importance of understanding the tax and regulatory implications that come with investing across borders.

While the process may be more accessible than many people assume, international investing still requires careful consideration of factors such as the jurisdiction, currency and tax treatment.

For investors, whether they are just starting out or already have significant assets, the underlying message from the discussion was the importance of understanding how individual financial decisions fit into the bigger picture.

And in a region where both people and money continue to move, those conversations are likely to become increasingly relevant.

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