How to start investing

[CathJ]

I know no-one wants to give specific investment advice on this forum, but I'm looking for more general info on how to go about the whole process that I'm sure you guys can help me with.

Basically, I've been saving up over the years and have my money in a marketlink account. But it's built up to the point where I think it's being wasted just sitting there, and that I can do something more with it.

So i'm looking to invest, but don't quite know where to start. I don't want to actively manage my investments myself, so I'm not looking at something like online share trading. I want something balanced, I don't want to invest just in equities, but i don't really know what i want beyond that. I guess i need to find myself a financial advisor who deals with investments? And how do i go about finding a good one? And how much is a reasonable amount to invest? I mean, if you turn up with 1K to invest, they're not going to be very interested in taking you on as a client OTOH, go to them with 1 mill and they'l be very interested (I have an amount btween those 2 figures )

 

[rpm]

Hi CathJ

There are a multitude of investment options – like share portfolios, unit trusts, property (not only buying a house) and the like – but for now I think most people will strongly advise that you keep cash and place it in a high-interest account like a money market or fixed term investment.

The markets are very volatile as you may know – both property and the JSE – and it will not be nice to see 50% of your hard earned cash disappear in a few weeks or months. After the recession (I see they are even mentioning depression now) a split between cash, shares and property is always good. There will sure be many bargains then and a return on investment will be far more likely then than in 2009.

I hope this helps…I am no expert but I have to read the financial news to keep track of things

 

[kingmonty]

@CathJ: spend a little bit and go and see a reputable Financial Advisor. He or she will look at your portfolio and advise you the best route for your unique situation.

And never, ever ever ask for financial advice on an internet forum.

 

[rpm]

@CathJ: spend a little bit and go and see a reputable Financial Advisor. He or she will look at your portfolio and advise you the best route for your unique situation. And never, ever ever ask for financial advice on an internet forum.

Wise words from Kingmonty...

 

[DJ...]

Yip, my advice would be to visit a reputable financial advisor. That reminds me, must get back to the financial sticky in HWLR...

 

[CathJ]

Yep, I agree with you about not asking for advice on the forum... what I'm trying to find out is more just where to start. Like, how do you dind a financial advisor (a good one!). What are the costs involved? How much should you be investing to make it worthwhile for both him and you?

And I agree with you to, rpm - that's why I've been keeping it in a money market account... I just feel there should be something more worthwhile. Maybe it's not the right time, though I think i'd still like to find out from a professional what my options are at the moment.

 

[DJ...]

Yep, I agree with you about not asking for advice on the forum... what I'm trying to find out is more just where to start. Like, how do you dind a financial advisor (a good one!). What are the costs involved? How much should you be investing to make it worthwhile for both him and you?

Your questions are all dependant on personal circumstances, so there is no generic answer, such as 15% or the like. It just doesn't work like that. Your financial advisor will be able to answer these once he/she has completed a Financial Needs Analysis on you though. These are free of charge...

 

[kingmonty]

Financial Advisor's fees differ. Make sure you consult with a FSB approved advisor. This website has some excellent tips on choosing a financial advisor:

http://www.findanadvisor.co.za/financial-planner

 

[CathJ]

Financial Advisor's fees differ. Make sure you consult with a FSB approved advisor. This website has some excellent tips on choosing a financial advisor:

http://www.findanadvisor.co.za/financial-planner

Ah, thanks! That looks like it should give me the background and general information I need.

Edit: wow, that's really a great site. Seeing the info given for each financial advisor explained a lot (like how they focus on different things - the ones I've known have been mostly insurance focused, as opposed to investment focused like I'm looking for now) And now I see why your answers were mostly "it depends" Thanks!

 

[guest2013-1]

Hi cath,

If you have debt, best investment is to pay it off immediately. Keep your money in the money market account for now. But see a financial advisor. I'd recommend someone but he is in Ceres (not sure if you'd want to make the trek) but I trust him with my life.

He doesn't do shares as such but he'll be able to tell you exactly what options would be good for you (like an allan grey managed fund or something)

Very good, I usually make the trek from Paarl to him, he does all my stuff, life insurance/disability and pension.

Plus Ceres is beautiful

 

[2CentsWorth]

+1 That findanadviser site is awesome thanks!

 

[Kurt Charles Mitchell]

Hi Cath, i'm a bit new on this forum. I'm a financial advisor with old mutual, feel free to pm me with your details and we can arrange a meeting to discuss the options you have.

 

[2CentsWorth]

Reported as bad post:

I think it bad form to troll the forums in search of potential business.

 

[Kurt Charles Mitchell]

my apologies then to you 2cents and to the rest of the members on the forum!

 

[DJ...]

Reported as bad post:

I think it bad form to troll the forums in search of potential business.

I don't think it's a bad post at all. If this were an IT request and someone with the necessary skills responded to say that they are happy to help, it wouldn't be considered spamming. I do however hope that Kurt Charles Mitchell remains on the forum as we do discuss investments fairly often. Not sure if you were around when lancelotSA was still posting, however he too was a financial advisor in Durban and his financial posts were always appreciated. As a CFD trader myself, we landed up having some pretty interesting debates.

To Kurt - this forum has a lot to offer (that you will certainly find interesting) considering that it is South Africa's largest forum. Stick around and enjoy the debates and you might find the odd bit of business coming your way, so long as it doesn't amount to advertising Old Mutual and rather provide neutral advice and opinions...

 

[blunomore]

I do however hope that Kurt Charles Mitchell remains on the forum as we do discuss investments fairly often.

Cath wants advice and Kurt just happens to be reading this forum.

Coincidence or conspiracy?

 

[CathJ]

Cath wants advice and Kurt just happens to be reading this forum.

Coincidence or conspiracy?

I did think it was a bit coincidental, considering his only two posts were, well... looking for business. Not a spammer, as such, just someone joining the forum with a specific interest in mind.

For all we know, of course, he may be a long time lurker and just finally decided to register and post because he thought he could help But you do have to weigh the advice given against the rep of the poster... after all, we ask each other questions here because we have a certain level of trust in each other.

 

[blunomore]

But you do have to weigh the advice given against the rep of the poster....

In which case, I am giving you fair warning: NEVER take any financial advice from me. I am clueless!

 

[DJ...]

Cath wants advice and Kurt just happens to be reading this forum.

Coincidence or conspiracy?

This site is very often the first result of a google search for practically anything in South Africa...

 

[Kurt Charles Mitchell]

Thank you DJK,
i do still however apologise if i have stepped on anyones toes and i can assure you i will not be advertising. Like i said i'm very new to this Forum, i only joined last month and still finding my feet at the moment, however feel free to let me know if i have overstepped any boundaries, criticism is considered a learning curve, a reflection and a chance to better who i am and how i conduct things.
i will definitly stick around and also hope to learn much from each and every member on this forum, you learn something new every day!

Thank you for your advice and assistance!