The COVID-19 pandemic and the subsequent market volatility has spotlighted the need for financial resilience among investors.
“To be a successful investor, you need to understand what you are getting yourself into upfront, make sure you are comfortable, and then buckle up for the ride. But there are periods – like the one we are going through – which will test both your patience and fortitude. Resilience is one of the key ingredients that will help investors get through and become successful in the long run,” says Marise Bester, a specialist in the retail distribution team at Allan Gray.
Bester recently unpacked what it means to be resilient investor and offers various practical tips for success. One of the tips is highlighting how an independent financial adviser can help to articulate the goals and objectives of an investor. Bester shares that financial advisers can assist their clients in picking investments that are appropriate for their needs and circumstances, helping individuals to stick to their goals when short-term volatility, like we are currently experiencing, threatens to get the better of everyone.
“Your ability to make the most of your investment depends on whether you are able to remain committed for long enough to benefit from the potential returns; ride out the inevitable ups and downs and, allow the power of compounding to increase the value of your money,” concludes Bester.
Click here to read more about the other tips which you are welcome to share with your clients.
