4. SA Financial Experts Tips For Investing
- “Find a practice which is willing to invest in you now and partner with you for life. Every successful investor began their journey with one small investment,” explains Sue Torr, managing director at Crue Invest.
- “The way that the prosperous continue to build their wealth isn’t really a secret – they spend less than they earn, save the difference, and let the potential of compound interest make their riches grow,” says Hutchison.
- “UBS Wealth Management in Switzerland studied the difference in the wealth of people who are good planners versus those who are not,” explains Ingram. “It found that if you don’t budget and you don’t have investment and retirement plans, you are guaranteeing that you will limit your wealth over your lifetime. The report also shows that even a small amount of planning can make a massive difference.”
- “Setting these goals is like setting the destination points on your GPS – you’ll save a lot of time and money by having a clear endpoint in mind instead of coasting around,” says George Herman, Director and Chief Investment Officer at Citadel Investment Services. “Be as specific as possible, thinking carefully about how much you will need and your timeframe.”
- “People in their 20s don’t save or invest because they’re waiting to get a better job or start a business to earn more money, but the truth is most millennials spend 30-50% of their pay cheque on entertainment. It’s better to start putting a little aside when you have minimal responsibilities and take advantage of the power of compounding interest. You must find a balance between having fun and having funds. Sometimes It’s okay to miss out to stack up,” –Arese Ugwu, author Smart Money Woman
- “Every South African knows that Cape Town property growth will be more attractive than property yields in smaller towns up-country. So geographical location must be taken into account,” says Jan Vlok, a research and investment analyst at Glacier by Sanlam.
- “It is a big mistake to borrow money to use for investing,” says Gusta Binikos, CEO of FNB Share Investing. “Investing is a long-term game, and nothing is certain, there is a chance that you can end up losing money and owing on your debt, leaving you in a very bad financial position.”
- “As South Africans, we should think more globally,” says Jean Pierre Verster, a portfolio manager at Fairtree Capital. “We shouldn’t limit ourselves to stocks listed in SA only. The ease with which South Africans can now open brokerage accounts that allow for access to stock exchanges globally reinforces this.”