Financial advice for small investors


A Fin24 user wants financial help to see his investments grow, but feels it is too small an amount for any professional to be interested to assist. He writes:

I only have a small amount available for savings and investments per year - around R20 000.00.

Currently I have been investing this without the benefit of a financial advisor as I feel that the size of my investment is not sufficient for an advisor to take me on.

However, my savings and investments have not performed very well so I would like to get some professional input.

What are my options for such advice?

Sue Torr, managing director at Crue Invest, responds:

When investing for the long-term, it is always best to obtain independent financial advice from a Certified Financial Planning® professional.

Although many financial planning practices may not consider taking you on as a client due to the relatively small size of your investment, there are practices out there which can see the bigger picture and take a long-term approach to client relationships.

Clients who are starting out on their financial planning journeys in their 20s may not be able to afford much in terms of investments, but as their earning and investment potential grow, these clients will become high net worth individuals over time.

Our advice is to do some research on the internet and find an independent professional practice that is willing to take you on as a client for the long-term.

There is no need to feel inadequate about the size of your investments. With time and commitment, your investments will grow, and you will build your wealth.

Find a practice which is willing to invest in you now and partner with you for life. Every successful investor began their journey with one small investment.

As a word of caution, be sure to engage the services of a practice that does not charge upfront commissions on your investments. Be sure that your funds are being invested on a unit trust platform, preferably with a multi-manager approach.

Also, ensure that there is full transparency regarding the fees that are being charged. In general, an independent financial planning practice will charge a percentage fee per year.

From what you have written, it sounds as though you are investing for the long-term. Therefore, do not be discouraged by short-term market fluctuations.

The last quarter has been particularly turbulent, but that is the short-term nature of investment markets. Ignore market noise and short-term volatility and remain focused on your long-term goals.

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