Financial Data
Updated 29 Feb 2020


The secret of long-term investment: Making your money work for you

Consumers are facing difficulties when having to make decisions with regards to their financial planning – and without the right advice from a professional it can only lead to much more difficulties in the future.  


Wouter Fourie, 29 March 2016  Share  0 comments  Print


All the answers to your unique business lifestage questions

As an FPI Approved Professional Practice™ firm, we often consult to entrepreneurs who are either starting their business, or who have settled their venture and are now looking for ways to bolster their personal wealth. Usually, these entrepreneurs have a different view on money and want to secure every Rand invested to make a healthy return. This is often because they know how hard they have worked to get the money in the first place. 

Related: Which should you choose: A broker of a financial planner?

Anyone who has worked hard to earn their money and who want to save for their future needs should consider the following long-term investment rules:

1. Leave the management of your retirement funds to a professional

Financial planners, who carry the CERTIFIED FINANCIAL PLANNER® designation/CFP® designation which is awarded by the Financial Planning Institute (FPI), have to comply with very strict ethical and educational standards. These financial planners are trained to focus on solid long-term investments and they will not allow the short-term fluctuations derail their plan or create panic.

2. Do not attempt to time the market 

This is a common trend. You hear of a hot tip or share – decide to overrule your financial planner and long-term plan and invest in this new share or idea. Or you get scared about the state of the economy – withdraw as much of your investments as you can and you stick it into your bank account or a ‘safe’ money market account. 

In the final analysis, these hasty decisions turn out to be a poor long-term plan. Firstly, you exit the market at a low point, which means that you have less capital to work with. Secondly, you usually miss out on the market improvement when it turns. And lastly, you often pay fees on both transactions, which absorbs a significant portion of your potential growth. 

Consider a balanced approach

If you are planning on investing a certain amount on your own, consider balanced portfolio funds. These funds are required to invest in a range of asset classes and equities, which spreads your risk and gives you access to a wider portion of the market if it starts performing again.

Related: The dangers of trigger happy investing

Balanced portfolio funds have been proven to perform well in tough times and they too are regulated and controlled. Furthermore, the performance of these funds are evaluated and the funds are ranked by Plexcrown.co.za.

With the market currently in turmoil and many fireside-specialists espousing the benefits of Ponzi schemes or quick-fire investments, remember that you have worked hard for your money. Now call in the help of a CFP® professional and let your money work hard for you!

To find a CFP® professional near you, visit www.fpi.co.za or call 086 1000 FPI (374) / 011 470 6000.

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About the author


Wouter Fourie

Wouter Fourie is a CFP® professional and 2015 FPI Financial Planner of the Year.

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