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Friday, September 2, 2016

5 Reasons you hesitate to invest and why it will hurt in the Long Term

Investing is a subjective sport. Some do it for pleasure, most do it because they see someone else doing it! Many follow the legends of the investment world - both local and international.

For some its a style statement, for others a gamble. In a perfect world everyone over the age of 20 years and earning something would be salting away some part of the earnings for their retirement.

Most do not. I being a foremost example having found out the hard way and having started when I was over 35 years old.


The Reasons for not investing seem inane but here they go:-

A)Have no idea why they should save

B)After mortgages and expenses they do not have anything to save!

C)The only savings they know is to buy life insurance!

D)Savings and investing is a cumbersome process and too tedious

E)If business owners or professionals they are ploughing back their savings back into business

All valid arguments and true. With all the news flow its very easy to get caught up with the 'flavours of the season' be they Gold, Silver, Crude, Pharma, IT  etc

There is a logic in Asset Allocation - not all sectors or segments of the market perform at the same time.Nor will all your assets keep going up.

It is also important to identify what are ASSETS.A car is not an asset!Many even categorize owning a home as a LIABILITY.

Be what it may,parking your savings in  Gold,realestate,equities,startups,Art,Antiquies,diamonds,platinum is a surefire way to lessen the risk of any one sector failing to give you a return.

Then comes the risk element - unfortunately most Governments all over the world are taking a back seat as far as social work is concerned and allowing markets to determine the RISK and REWARD.

Staying invested,starting early that I learnt to my great discomfort allows you to enjoy the power of compounding(It takes a minimum of 8 years of investing to see visible signs).

This discourse is not aimed at professional investors but those accidental bankers like myself who grew up too late for this fact to take effect.

Get a professional Investment or Wealth Advisor and start......its never too late or you wake up one fine morning 25-30 years from now and realise that inflation has eater away all your fixed deposit interest...!!!