How many of us invest our pension in our business

[tec0]

The truth is nothing is without risk. It is true Diamonds value is artificially maintained. It is for this reason why I invest in certified diamonds. Take a moment to understand that billions is generated by diamond mining every year.

Now to maintain the industry and to maintain profit they will never allow their product to be devaluated thus you’re very small investment will not lose its value. Let’s say for argument sake that diamonds lose all value and I lose...

Well I have considered that option and that is why I also focus on desired metals, like gold and platinum. If these two markets fail then I will assume that there is no longer an economy left to worry about... The truth is your investments are also based on investment market value. If the market fails then yes I will be left with a loft of shiny rocks and shiny stuff but you will be left with a worthless piece of paper...

I may be stupid to think this way, but as long as my investment is physical in nature “and cannot be taxed” until I sell it on, I am in control of it and not some big company with “unknown rules that disqualifies you from your investment”

[braganza]

Understanding the Rules of Investing

When devising an effective investment strategy, one must bear in mind that the rules one applies to generating wealth within ones own business are virtually completely opposite to the rules one should apply to investing.

Many entrepeneurs believe that due to the fact they have obtained success in their businesses that they will be successful when investing. Unfortunately it is often their success in business which inhibits their ability to invest in a strategically effective manner.

Lets consider some of the rules which are applied in business as opposed to the rules one should follow when investing

One is subjectively involved in ones own business whereas one should appoint and independent advisor who is onjective and can remove emotive decision making from the investment strategy.

One gears in business - utilising bank funding and other structures to grow and exapnd ones domain. When applying a preservation of wealth strategy, (which should be applied to a certain allocation of investment assets), one should not gear or borrow money to invest.

In business, one should focus on the core of that business offering, narrowing down and strengthening that core. In investing, diversification is key to portfolio robustness and also key from a risk reduction perspective.

Your business is your number one priority - this is where you create wealth. On retirement, your investment targets for the bulk of your accumulated capital should be preservation of that wealth in real terms (after inflation).
This is a vital priority.

An effective cash flow analysis and investment strategy are key to a successful investment. Each person has a different situation and thus requires a customised plan. The decision as to the asset allocation, currency diversification and liquidity requirements can only be determined after doing the cash flow assessment and from there, a detailed strategic plan.

The unfortunate position of most investors is that they do not have their portfolios actively managed - a broker may invest your capital in good funds, but within a few months and with a changing economic environment, those funds may become the "dogs" and you could loose your investment capital.

So, an effective strategic plan, a cash flow assessment, applying the right rules to each component of your investment portfolio, active management and a pro-active relationship with your advisor all all key components on getting on the right track.