Points to Remember

Radica's Investing Habit

Radica Gosine

Age: 61
Occupation: Attorney-at-Law

“The best advice I can give is to make investing a habit. Manage the rest of your life – your house, your car, your expenses (both necessary and luxury) – around the fact that you make X percent of what your salary says you make. We’re forced to do it for taxes, so do the same for investments. Because regular investments require discipline, it’s worth it setting up automatic transfers of portions of your salary to your various investment accounts. Out of sight, out of mind.

The second best advice that I can give is to wrap your head around the idea that savings and investments may deliver delayed gratification – but they do deliver. Instead of turning your back on profitable investments by saying ‘you know what I could do with 5% of my salary right now?’ think about what you’ll have the financial means to do when that 5% gives you a 25% return later on in life.
Be disciplined and have patience. That’s my advice.”

FIRSTLINE POINTS TO REMEMBER

DEDICATION

  • Investing regularly is just as important as starting early. Make investing a habit.
  • Life can throw up any number of emergencies and we can’t presume that there will never be a ‘good’ or ‘understandable’ reason to forego investments at certain times in your life...
  • We can say however, that you can do your part to ensure your regular investments remain perennially so regardless of external forces by shoring up three month’s worth of business expenses in an ‘emergency fund’ account.
  • Take advantage of company investment plans. Their automatic investment of a portion of your salary relieves you of that work and is beneficial over the long term.

PATIENCE

  • Investing delivers delayed, but increased, gratification.
  • Wealth is built over time, not overnight.