This week I am going to cover some investment tips. As an investor you need to have patience and a good outlook on the future. If you think you are going to invest in real estate or the stock market with a short term outlook you will be disappointed.
As always these tips come with a disclaimer. They are only tips, if you consider investing at all you should always consult a professional financial advisor first.
16. Investment
A true investor always invests for the long term. He knows that his investment needs time to mature and he will not rush to get there, that is when you make mistakes. If you really want to invest for the short term you will be better off using bank term deposits or money market accounts rather than real estate and the stock market.
17. Time not timing your investment
You should never try to time the markets or real estate you will lose money, Sure there are people that do this but successful ones are few and far between. Most of the time these guys die young with too much stress. The way to do it is to give your investment the time it needs to make you money, believe me you will not be disappointed.
18. Financial Services Board (FSB)
Always make sure make sure that the investment product you use is registered with the Financial Services Board (FSB). If things go wrong you will not have any means to take action. For more info check out http://www.fsb.co.za/.
19. Charges
Life assurance investments also known as endowments are priced higher with lower amounts. You should check the structure of costs in relation to the premiums and you might find that if you paid just a little bit more your cost will go down and increase your return on investment.
20. Regular investment
A good investment strategy in a volatile market is to invest on a regular basis. When the market falls you can buy cheap. If the market rises you can sell high. This also helps manage market sentiment, if you are always investing you don’t really get affected by what everybody else is thinking.
Until next time.
