An independent financial services provider, specialized in financial planning, integrated wealth management, and investment solutions, it is guided by insight, rationalized by market research, and supported by rigorous due diligence, with a team of private wealth managers that help to navigate long-term wealth, Carrick Wealth is one of its kind in Zambia and across the African region.
Speaking during an event held at Carrick Wealth Zambia offices, Addis Ababa drive, Carrick Wealth regional CEO, Fred van Niekerk spoke on the global spike in Inflation which entails a corresponding spike in prices. He first highlighted some of the Company’s notable achievements over the past few years, “Carrick has achieved some of its end goals, the value to which is not measured immediately but in a period of 20 years time. Since 2014 we’ve secured international education for 2,300 southern African students, we have established 3,500 USD based retirement strategies for southern Africa, created a 163 international property portfolio, and built a retirement solution for 870 teachers.”
Mr. Van Niekerk told a brief history of nerve wrecking events which have happened unexpectedly in the past nine years with such examples as, the advent of COVID 19, Boko Haram killings, the Ukrainian war with Russia plus many others, he stated that all this has led to a spike in Inflation which corresponds to a spike in prices. Carrick Wealth is there to help individuals plan for such unexpected events by planning for them in advance by considering offshore investment. He illustrated a death by 100 currency cuts, since 1992 he said, 10.5% was lost annually to dollars by that time. “Many things have gone wrong, and people have ended up making wrong decisions. This is birthed from not understanding compounding interest, by 2052 $1 would be bought at K411.69 in Zambia” he said. Illustrating how petrol is the main commodity that controls inflation, he said, when currency depreciation and inflation combine, 1ltr of petrol which was bought at K1.27 in 1998, today is being bought for K29.48 with the current annual inflation rate at 14.00%, however in 2042 petrol will cost K405.15 per liter if the inflation remains constant, other cost will go up too
such as international education, with estimated inflation in the UK at 12%, the cost will therefore be €600.
Inflation is going to mean cutting on future lifestyle spending and how one budgets for their needs. He said the trick to double one’s savings in the next 11 years is to make sure it gains interest at 7% and vice versa, no matter what projects one is doing they will not outperform the solution Carrick is providing. He advised that what to do to control this is having no Cash until inflation comes down, going back to the drawing board, choosing a strategy, and committing to it.
In closing he said, Carrick is a financial custodian, and investments are not done in Carrick. The role players are Absa, Barclays, Citibank, UniCredit, Commerzbank, Goldman, and Sachs. Carrick fits in as a contractual relationship and don’t interact with money because it directly flows as custodial risks, Carrick is the licensed advisors, administrator, and relationship linkage.