WHEN I was a kid I would throw myself off the roof at home and onto the lawn a few metres below, sometimes flapping my arms wildly for some added stupidity.
Fortunately, taking this plunge never produced any broken bones, thanks to a spongy lawn.
However, failing to take an investment plunge is a sure-fire way to produce broken dreams.
Turmoil in shares, superannuation and real estate in the past few years has made it easy to become paralysed about making investment decisions.
It’s all too hard, I don’t want to lose my money, I’ll wait until things improve these are common reasons for people doing nothing about becoming an investor.
The problem is that when we wait, we miss opportunities. Shares have surged 18 per cent since November and many people are only now starting to notice them again, while property experts say the real estate market has bottomed and will be boosted by low interest rates.
There will always be doomsayers predicting the end of the financial world, just like it is certain that shares, property and other assets will fall again at some time in the future and lose investors money.
That is why it is important to use a measured approach to investing and avoid a gung-ho mentality that sees you blindly follow the herd.
Take small steps, do loads or research, speak with experts who have succeeded in the field, and for shares and funds buy small parcels at a time that you can build upon as you gain experience and knowledge.
Proceed with caution, but always proceed.
Paralysis is for pansies. Take the plunge, but make sure there’s some spongy lawn to protect you. Flapping your arms is optional.
Anthony Keane is editor of Your Money.
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