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“If they’re absolute beginners the first thing they should be doing is getting advice.”He explains that it’s not about someone choosing a fund for you, but rather about strategy. Why are you choosing a fund; why are you saving, what are you doing this for? Why do you want to invest?
“If you’re investing for something in a year’s time, it’s a very different strategy to a situation if you’re saving for something in 20 years time. Get advice.”He suggests finding somebody you can pay, who’s not going to just sell you a product, but who will provide advice that’s worth spending money on.
“You can almost not beat a unit trust investment,” he explains, noting that, personally, he wouldn’t invest via an insurance company. "Buy a unit trust, and then forget about it. Don’t fiddle, leave it alone."
“…Not tomorrow, start today.”
"You can get a unit trust for as little as R50 a month... But, the reality is, R50 is going to take you nowhere." "Buy a gold unit trust, you can buy a property unit trust, you can buy a bubblegum unit trust. You don’t need anything else, you don’t ned a private share portfolio. You certainly can’t buy a private share portfolio for R200 a month, but you can buy a unit trust that has a private share portfolio for R200 a month." Read More about Common Misconceptions of Investing Below
"You don’t have to pay commissions and all that, just get some advice. You’re going to pay for the advice, but it will be money well spent," advises Sneddon.