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Financial Planner: How to Invest Your Cash Wisely

Despite tough economic times, most people still try to invest their money to make more.

According to the 2016 Global Consumer Survey conducted by the Financial Planning Institute, 76% of South Africa people want profitable investments.

Sydney Sekese, a certified financial planner answers on investment.

Am I financially fit?
It doesn’t make sense to invest money when you have too much debt. Start by settling your debt and then invest your money.

This will ensure that you are working towards a goal and not a shortfall in your investment.
Invest Your Money Wisely 

What will I do with the money?
You need to decide how you will spend your investment. Depending on what you want to do and how fast you want your investment back, different types of investments are available.

Do I know my options?
If you’re a first-time investor it is important to realise that you’ll make more money investing in a good mutual fund than you will moving it between stocks.

Where is the best place to invest?
It’s important to diversify your investment portfolio as this protects you if one market performs poorly. If you can’t afford more than one stock, get involved with a mutual fund or exchange traded funds.

When should I start?
For almost all investments, including retirement savings, nothing makes up for compound interest and the earlier you start the more your money is compounded.

What’s the risk?
Investing is always risky as no one can accurately predict the future of the stock market. Always ask for professional help.

Do I need a financial planner?
Yes, Sekese said in order to accurately plan for your finances you need a professional to help you identify your goals.

Will I be charged?
Investing isn’t free. If you’re getting professional help you will have to pay fees.

Will I have to pay taxes?

Once you start making money off your investments you will have to pay capital gains tax. However, you may receive a tax break if you’re investing in retirement accounts.

How do I limit my exposure to nasty surprises?
You should put a small portion of your money into risky investments and the much larger portion into safe ones. - Daily Sun 

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