Unlocking The Secrets To Unwavering Investment Commitment

17 Apr 2023
By Rhiannon Knezovich Senior Wealth Manager - Apio Wealth
2024 2023 2022 2021

‘Invest for the long haul. Don’t get too greedy and don’t get too scared.’

Stay dedicated to the end goal – Specific, Measurable, Achievable, Relevant and Time bound (SMART) goals to unlock the quality of your investment. An investment can easily be seen as a burden, but our trade secret is if that investment is linked to a goal, time frame and within budget then you will remain on that journey of that investment to your final destination. Work with your wealth manager to establish these from the start and rely on them to help keep you focused if you waiver at all.

Here are some tips to make this achievable:

Focus on the bigger picture
We believe that a goal has a direct relationship with your emotion. Having a purpose behind the investment it takes away from the burden of contributing towards that investment.
If your purpose is saving for education, making sure your children receive the best education is motivation to contribute towards an investment.

Diversify your portfolio
Diversification is essential to reduce the risk of experiencing volatility in your portfolio while looking for good long-term returns. By spreading your investments across different asset classes such as bonds, cash, property and equities both locally and globally, one enhances their ability to earn long-term returns while minimizing short-term volatility.

Stay informed
Keep up to date with the latest market trends, news, and economic indicators. This knowledge will help you make informed investment decisions and avoid reacting impulsively.

Stay disciplined
Establish boundaries for your investment. Once the boundaries are set you know when it would be important to stop contributing or access the money.

Creating a budget
Setting aside a monthly amount to commit to an investment is easy when it does not put you under pressure to do so. Make sure you start the investment with a more comfortable amount. Once you get the habit of investing, the monthly amount can be increased.

Embrace Volatility

‘The most important quality for an investor is temperament.’

The investment market can be volatile, but don’t let this deter you. For your longer-term investments, the market volatility can create great buying opportunities for investors. Volatility allows for rebalancing to take place – putting you in a position where you are able to sell from asset classes which have done well, locking in these gains and then using these gains to buy back into asset classes which have not performed as well over the period. Buy low and sell high is a strategy one can follow in this regard. Keep your eye on the investment strategy you have put in place and monitor the volatility associated with it.

Time Frame
Make sure your goal is linked to a timeline. Plan in advance to make sure the investment is achievable. By setting your time frame for investing you are setting up your expectations and commitment will follow naturally.

Seeking advice
If you are feeling overwhelmed or unsure about your investment goal, seek advice from a financial professional. They can provide valuable guidance, help you make informed decisions and hold you accountable for your investment goals.

Please contact us on 011 799 6400 or info@apio.co.za for any assistance or advice you might need.