You want to start investing, but with so many options and everybody giving you different advice, you keep delaying it.
We know that analysis paralysis can be a real challenge for many of us, and that’s why we’ve decided to explain some of the best investments in South Africa. Understanding investments doesn’t need to be complicated.
In these tough economic times, everybody wants to save as much as possible and have the best return on their investment. It’s safe to say that global investments are not booming right now, but that’s not a bad thing if you want to start investing. Right now, is the best time to start investing, while the share price is lower than usual.
Factors to Consider When You Start Investing
When choosing the best investment, it’s important to keep the current inflation rate in mind because you want the interest rate on your investment to be higher than what inflation is. If it’s not higher, you will essentially be losing money in the long run. Another factor to consider is the investment term – will this be a short-term, medium-term, or long-term investment? The term of the investment will determine the risk that you will consider. It’s important to know what your investment goals are to determine the volatility you will be exposed to.
Investments have different fees involved. You need to know this before you start investing so that you know what you’re getting yourself into. The tax that is paid on investments varies depending on the type of investment. You need to understand the differences and how this will impact you.
Unlike savings, which are for a shorter period, investments are for a much longer period. That often means short-term sacrifice for long-term gain. If you go through financial difficulty, the last thing you should consider is to stop and withdraw your investment. Instead, it would be better to stop contributing until such a time when you can start contributing again.
The Rise of Online Share Trading
Online share trading has also become more popular in recent years and it has become more accessible to more people. You don’t need to be a share trading guru to start online share trading. There are so many resources available for you to do your research or to follow the advice of more seasoned online share traders who share their tips quite often.
Invest In Yourself will be hosting a webinar that will cover everything we’ve mentioned in greater detail to equip you to understand investments so that you can start investing today.
IIY’s Understanding Investments webinar:
Date: Wednesday,15 March 2023
Time: 12:00 or 18:00
Duration: 2 hours Location:
Online Cost: R500.00