How fol­low­ing your in­stincts can de­stroy your wealth

Weekend Argus (Saturday Edition) - - GOOD WEEKEND -

The amount of re­search you do, how you se­lect your in­vest­ments and fund man­agers, and how of­ten you re­bal­ance your port­fo­lio are im­por­tant fac­tors in cre­at­ing wealth, but the key to suc­cess­ful in­vest­ing of­ten lies in how well you con­trol the en­emy within.

One of the most dif­fi­cult as­pects of in­vest­ing is that you some­times need to make fi­nan­cial de­ci­sions that are in di­rect con­flict with your in­stincts. For ex­am­ple, when mar­kets de­cline, peo­ple of­ten avoid in­vest­ing be­cause they are afraid.

When you al­low your in­stincts to take over, you of­ten fail to fully un­der­stand the con­se­quences of your de­ci­sions. More of­ten than not, your be­hav­iour can de­stroy your wealth faster than any mar­ket de­cline. Sadly, this is the po­si­tion that many in­vestors are in af­ter ex­pe­ri­enc­ing the most dras­tic share mar­ket de­cline in re­cent his­tory. A year af­ter the event, many are still suf­fer­ing the con­se­quences of their knee-jerk re­ac­tions.

At the fi­nal se­ries of meet­ings of the ac­sis/Per­sonal Fi­nance Fi­nan­cial Plan­ning Club for this year, An­drew Bradley, the chief ex­ec­u­tive of ac­sis, will look at the most com­mon wealth-de­stroy­ing traits that in­vestors dis­play dur­ing mar­ket crashes.

The pre­sen­ta­tion takes place on Tues­day, Novem­ber 17, at Belmont Square Con­fer­ence Cen­tre, Belmont Road, Ron­de­bosch. To book, call Michelle de Power on 021 670 7800 or email Michelle.de­Power@ac­sis.co.za

The meet­ing starts at 6pm and ends at 7.10pm. Mem­bers of the Fi­nan­cial Plan­ning In­sti­tute pay R80. Non-mem­bers pay R125, and stu­dents and pen­sion­ers pay R75.

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