I WANT TO HIGHLIGHT THE FOLLOWING PRINCIPLES THAT ARE IMPORTANT ALL THE TIME:
USE DIFFERENT INVESTMENT STRUCTURES TO CREATE A TAX-EFFICIENT OVERALL PORTFOLIO
One of the few guaranteed returns that investors get is the tax benefits that different investment structures offer, and for me, this is the essential principle of investment management. Investors only have to take advantage of all the concessions that SARS provide regarding tax deductibility of contributions and the tax treatment of returns and capital growth.
REALISE THAT NOBODY CAN ACCURATELY PREDICT WHAT IS GOING TO HAPPEN IN THE SHORT TERM
The best investment gurus in the world cannot predict what is going to happen on financial markets next. However, they can formulate strategies over the long term through diversification to reduce investment risk significantly. Identify your investment goals are and structure individual investment portfolios accordingly There are specific risk and reward guidelines that investors can follow to manage their return expectations for their investments with the eventual results. For example, if an investor decides on an aggressive approach and he/she implements a share portfolio he/she cannot question the investment’s poor return over two years as the agreed term of the investment is ten years. It is the same as asking an engineer who has been given five years to build a bridge where the bridge is after just two years.