Investors who are still building up capital are “net consumers” of investment units – i.e. they are accumulating investment units. They should thus be delighted when the cost of investment units goes down, which is exactly what has happened over the past year as markets have dropped off.

The long–term investor is now in a position to benefit from the principle of Rand cost averaging, namely that the monthly investment is now buying more (cheaper) investment units than before. The smart move would be to ignore the ups and downs of the market and simply invest regularly through a volatile period. It has been shown time and time again that investors will build up significantly more capital if they continue buying when the markets are falling.

For e.g. the period between July 2002 and May 2003 where the JSE All share Index lost a third of its value before it turned and rose again. Two and a quarter years later the market was only 5.8% p.a. up on the pre-dip high, yet investors who had continued investing monthly gained 22.4% p.a.

Now is the time to return to the basics and allow the bear market to work for you as an investor.

If you have never had a financial plan prepared for you, please go to the “contact us” section on the website and fill in your details, and we will contact you to explain the process.

Our Value proposition is the ability to provide a holistic financial plan for you, taking into consideration your personal and financial goals and objectives. We believe in the building of long-term relationships, with yourself, your family and any of the other professional advisors who may be servicing you.

Our Financial planning process consists of the following:

• Identification of your financial goals and objectives.
• Collection of relevant information.
• Analysis of your current financial situation.
• Development of a full financial plan, together with options and recommendations
• Implementation of agreed recommendations
• A regular review of the financial plan either bi-annually, annually or as the circumstances require.