In today’s high visibility age many of us tend to be so concerned with trying to keep up with the Joneses, that we lose sight of our own unique needs and goals.
The same can be said for our investment habits where a focus is often placed on short-term, peer investment returns instead of our own long-term goals.
While chasing returns can satisfy our immediate urge to “keep up” with our friends and investment peers – it may in fact be compromising whether you can actually achieve your longer term goals.
This is why Momentum Investments chief investment officer, Sonja Saunderson, believes that outcome-based investing (OBI) is a game changer for local investors. “Considering South Africa’s current dire state of retirement savings, we know that mainstream investment thinking is not optimal, because it often misses the true investor requirements and how to solve for their needs.
“As such, the true essence of OBI (also referred to as goal-based or liability-driven investing) means a complete overhaul of the way we make investment decisions. Investors make their selection based on the outcomes they wish to achieve financially. This essentially makes your investment goal the only benchmark that matters,” she explains.