Time is money  

Feel free to reach out to PSG Wealth Adviser  Jan-Albert Rossouw  directly.

One of the most critical benchmarks used when evaluating an investment is growth. And while the difference between 9% and 12% growth per year can seem somewhat insignificant the cumulative monetary effect is remarkable.

An investment of R100 000 compounded annually at a 9% growth rate over 30 years would yield approximately R1 326 700. However, when investing the same amount at a compounded rate of 12% the investment will yield approximately R2 995 992.

Many investors operate under the misconception that a substantial amount of capital is required to begin investing. However, this belief is unsubstantiated. In reality, consistent investing—even with modest amounts—can lead to significant long-term growth.

Monthly investments of R1 000 growing at an annual rate of 12% over 30 years will yield approximately R3 494 964.13 while an investment of R10 000 per month, at the same growth rate over an investment period of 10 years will yield R2 300 386.89

A common pitfall is adopting an overly conservative approach—especially over a long-term horizon—which can severely undermine wealth accumulation. Perhaps these calculations underscore not only the importance of diversifying into potentially higher yielding assets but also starting small and starting early.

Charlie Munger famously said that the real money is not in the buying and selling but in the waiting. This philosophy should not be mistaken as a recommendation to adopt a hands-off passive approach to investing at all times. The phrase, “If it ain’t broke don’t fix it” simply does not always apply to investments. Financial markets are dynamic, influenced by evolving economic conditions, geopolitical instability and shifting consumer behavior. An investment that performs well today might become obsolete tomorrow. Relying on a “working” portfolio without regular review and adjustment can expose investors to hidden risks, underperformance, or missed opportunities.

Investor profiles are diverse, shaped by a complex mix of financial goals, timelines, income levels, tax liability and risk capacity. What fuels one investor’s fortune could drain another’s dreams. While it is important that your financial adviser adds value in the shape of investment returns it remains critical that they do so without jeopardizing your comprehensive financial plan. After all you don’t pay your mechanic to fix the engine only to have him puncture a tyre and break the windshield while doing so. As financial advisers our primary objective is to maximize growth while aligning the investment strategy with each clients individual circumstances.

In the end, successful investing is less about finding the perfect moment and more about making time work in your favour. Starting early, staying consistent, and adapting wisely can yield far greater rewards than chasing short-term gains or waiting for the "right time." With a clear strategy, disciplined execution, and professional guidance, investors can turn time into one of their most powerful allies on the journey to financial independence.