How to safeguard your wealth
Nico-Louis Minnie, an investment specialist at Liberty, shares his tips on how to safeguard your money using sporting analogies.
The importance of having a financial advisor/coach
Even the best sportsmen need a coach. While it’s unlikely that Grant Baker’s coach could surf the way that he can, he certainly helped him win tournaments.
Most sportsmen avoid listening to couch coaches out there, who believe that they have the answers to how the game should be played.
You need to take the same approach with your finance and investment. While it may be interesting to listen to the views around the dinner table, you need to decide whose advice you are going to listen to, how it fits into your personal financial goal and to filter out the noise.
Take your time
Professional sportsmen will never achieve desired success if they leave their training and preparation to the week before a tournament. They usually take years training and discipline to win.
In the same way, most people leave their financial planning too late and are then forced to make too risky investment decisions to try and catch up on the years missed. This is a dangerous strategy and you are more likely to lose money than reach your goal.
It is never too late
Caster Semenya didn’t win a gold medal at the Olympics last year. She has four more years to prepare and hopefully win gold.
Most investors may find that they have not achieved their financial goal of retiring comfortably at the age of 60. However, 60 is still a relatively young age and there are still options available – such as continuing to work a few more years or taking partial retirement to allow your funds the opportunity to grow further.
If you want to be a top sportsman, you have to keep doing the same thing over and over again for long periods of time. Most of the top athletes start their training while still at school. It takes hard work and sacrifice to be a gold medallist.
The same discipline comes with investing. It may not be easy to put that extra money away each month, but if you do, the rewards will be great. It’s usually during tough economic times that people stop saving. However, the best returns often follow these periods of economic decline and if you are not invested at the time you will lose out on this rapid growth.
Having more than one coach
Some sports require expertise in different areas and therefore multiple coaches. However, these coaches also need to be in communication with each other and working towards the same goal.
When it comes to your financial plan you may need advice from different advisers in areas such as estate planning and risk cover, or you may have a stock broker if you have your own share portfolio. Some advisers are able to offer all of these areas of expertise within one practice while others may focus only on one area of specialisation. What is important is that all the input forms part of one holistic plan to reach your financial goals.
To read the full version of this story go to page 86 of the July-August 2013 issue of DESTINY MAN