Achieving Financial Independence 

Jennifer van Oerle, COO of Discovery Invest 

I believe financial independence is a multifaceted concept that varies from person to person. It is not merely about wealth accumulation but rather about having the skills and knowledge to manage one’s finances confidently and make informed decisions that align with personal life goals. 

Financial independence means different things to different people. For some, it may mean having enough savings and investments to cover living expenses without relying on a paycheck. For others, it’s about having the freedom to make life choices without financial constraints. It’s important to note that financial independence doesn’t necessarily equate to being ‘rich’. It’s more about having sufficient resources to live comfortably and securely, and to be prepared for unforeseen situations without compromising one’s lifestyle. 

The Role of Financial Literacy and Advisors – One of the main challenges in achieving financial independence is the lack of financial literacy. Many people don’t have a strong grasp of financial concepts, which can hinder their ability to make sound financial decisions. This is where the role of financial advisers or coaches becomes crucial. Having a trusted adviser can help individuals navigate seemingly complex financial landscapes, set realistic financial goals, and plan effectively for the future.  

Unfortunately, not everyone has access to these resources, which can be seen as both a luxury and a necessity. Increasing access to financial education and advisory services is something our industry must strive to improve. 

In my role at Discovery Invest, I observe several trends and challenges that impact the financial independence of individuals. One major concern is the perceived complexity of the financial services industry. From understanding the various types of investment products to the underlying investments themselves, as well as the regulatory considerations and tax consequences, the investment environment can be difficult for people to navigate. Additionally, issues like financial fraud and the need for robust security (including cybersecurity) measures are becoming more prominent. As custodians of our clients’ financial futures, we have a responsibility to safeguard not only their assets but also their personal information. 

---

---

A significant development in our industry is the introduction of the two-pot retirement system. This new legislation allows individuals to access a portion of their retirement savings before reaching retirement age. While this provides a crucial safety net for those facing financial emergencies, it also poses risks. It can be tempting to access these funds for non-essential purposes, which could jeopardise long-term financial stability. It’s essential to approach this option with caution and ideally, consult with a financial adviser to fully understand the implications of withdrawing from retirement savings early. 

Advice for Women Entering the Financial Industry – As a woman in a leadership role, I often reflect on the unique challenges and opportunities women face in the financial industry. My advice to young women entering this field is to always seek opportunities to learn and grow. Embrace every experience as a learning opportunity, even those that don’t go as planned. It’s crucial to build confidence in your abilities and to seek out mentors who can provide honest feedback and guidance. Networking is equally important; creating and maintaining professional relationships can provide support and open doors to new opportunities. 

Financial independence is a journey that involves ongoing education, careful planning, and sometimes professional guidance. At Discovery Invest, we are committed to helping our clients achieve their financial goals and navigate the complexities of the financial world.  

For women, especially, this journey can be empowering and transformative, and I encourage all women to take an active role in managing their finances and planning for a secure future.