How following your instincts can destroy your wealth
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.