Securing your long-term financial future: Time in the market is more important that timing in the market.

Madelein is an ambitious 22-year old who just finished her studies. She knows that she won’t be able to start investing right away as starting salaries are quite small. Nonetheless, she would like to know more about investments – what type of funds are available, and which one to choose to suit her needs.

Where should Madelein go to find the right information regarding investment funds?

  • Madelein needs to determine what she would expect from an Advisor:
  • The most affordable one?
  • Someone who would simply advise her on the product she has already chosen?
  • Will she need ongoing service and guidance?

Given the vast choices when it comes to Financial Service Providers,it might be challenging to align herself with the Advisor to suit her specific needs and values.

Even though she might only be able to start saving in the next year or so, what should she keep in mind in the mean time?

Her Advisor will provide Madelein with options most suitable for her with regards to age, salaries and financial goals. Thereafter, she should start budgeting and calculating how much she will need to save every month as soon as possible. Time in the market is more important that timing in the market.

Being so young, she would love to travel the world. What are her options if she would like to travel to Europe in the next five years?

When taking her savings budget into account she should put aside a holiday portion so that her investment capital is not affected.

If she would like to buy a house by the time she’s 30 years old, what would her best option be?

To invest as much in the market as possible now and then withdraw it in 8 years’ time to put into her bond.

What are common investment pitfalls she should look out for?

  • Hidden costs,
  • Unregistered FSP’s, and
  • Not being diversified with regards to asset allocation.
  • Anything that sounds too good to be true is usually a scam, or simply a product designed for the provider instead of the consumer!

How can she avoid the above-mentioned pitfalls?

Madelein should ask the Advisor upfront about the costs. She should do homework on the FSP or Advisor. The FSP’s values should align with her own in order to foster a long-term and successful relationship.

Foster Wealth Management is a registered Financial Services Provider (FSP Reg No.: 659). Contact us today to secure your long-term financial future, regardless of your current financial position.

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