Time to be a DIY investor!

SHARE   |   Sunday, 03 August 2014   |   By Nelson Letshwene
Regardless of whom you give your money to for investments, you remain responsible for the outcome. Whether you give your money to fund managers, brokers, insurance companies, or whomever you trust as your investment partner, you have to take full responsibility for the results that they achieve. The disclaimer clauses that you sign absolves everyone from liability in case of a loss. But of course they will heap praises upon themselves if they make profits, in which they get to share. The future comes to all and everyone has to take themselves seriously enough to invest for the future. Medical technology has advanced so much that more and more people will live longer. The question is, will you outlive your investments? If you do, how will you survive, financially speaking? Your goals should of course be to outlive your money than to run out of money while there are still many more years of life. The only way to ensure that you outlive your money is to invest your money now with prospects of growth in the future. The basic investment for the future known by all is your pension fund. I was saddened to watch old men on television crying that they had worked for over thirty years, but their pensions was not even twenty thousand pula in total. In such a case one may be tempted to blame the companies that they worked for, but the blame will only go as far as the company not having advised these men properly. Pension contributions remain largely voluntary in many companies and organisations. Those who choose to consume their money now will have nothing left for tomorrow. The greatest argument from non-investors is that they don’t even have enough money to carry out today’s demanding lives, therefore, how can they have anything saved for tomorrow? The trouble is that even those who seem to have enough, put forth the same argument. The first principle in securing a financially safe future is to practice the art of sacrifice. Something has to give. You must deny yourself something today, so that tomorrow, when you don’t have as much energy as you have today, you can support yourself from the energies of your youth. The mot important thing above all is that you must learn some investment priciples. There is no excuse for being cheated because of ignorance. When schemes like the Eurex scheme that swept through the country with people’s monies come through, you don’t have to be a victim. With a basic understanding of investment principles, you will know that if something sounds too good to be true, it probably is. As a DIY investor, never invest in what you don’t know. I know that may mean never investing for some people, but that is the challenge isn’t it? What do you really know about real estate if you claim to be a real estate investor? Do you know all the intricasies of the game of real estate investing, or you only know the surface? What do you really know about your pension fund? What to you know about the offshore funds you are investing in? What do you know about the unit trusts that you buy? What do you know about the companies whose shares you buy on the stock exchange? What is the growth rate of your investments? What returns should you be expecting on your investments? The Golden Rule will look into all these vehicles of investments, for the growth of the DIY investor. The future is in your hands, and it is important to become a strong DIY investor. As we stated before, this takes nothing from investment professionals, and yet it is important to understand that you bear the responsibility of your own investments. Afterall, you are the one who has to live on those returns. Let me close this article by sending words of condolences to friends and family of Gomolemo Motswaledi, a friend, a brother, a patriot. How the mighty have fallen! To your success! Should you have any questions or comments, please contact me on This email address is being protected from spambots. You need JavaScript enabled to view it.

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