October 2019 Video Newsletter

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This month, Theo and Warren discuss the traps that investors need to try avoid in the current investment environment and how you can determine if your adviser is providing valuable advice.

 A note from one of our para planners:

The Compounding Effect of Micro-Actions

Why is it that for some people, their goals don’t always manifest in their personal realities, and for some people they do?

On your road towards achieving your goals, you will encounter thousands of people spouting advice, telling you which tools to use, which actions to take and which roads to follow. Some will try to sell you shortcuts and others, overnight success.

What I’d like to turn your attention to is a principle called “The Compounding effect of Micro-Actions”.  In an article written by Carl Richards, he explains that micro-actions are actions so small, so easy to take, that they hardly feel worth doing. Carl advises that by continuously taking small actions, repeatedly, over long periods of time, it all adds up. The result of taking these small actions is the compounding effect of incremental change.

Carl further explains that once we have identified the goal that we want to achieve, we shouldn’t obsess over the reasons that we can’t do it. Rather, his advice is to get quiet and ask yourself one simple question: What is to be done next? Look for the next smallest action you can take. Do that thing. Ask again. Repeat.

Our goals are our best guesses of what we would like our future to be. It is, however, important to consider that the future is unpredictable, so be willing to fine-tune your goals and adapt as your situation changes.

To help with this, having a financial plan and regularly reviewing it is paramount – why? Having a financial plan helps to provide guidance on the following elements:

Image Source: Shewhart cycle



What is it in your financial life that you want to improve? Having a Financial Plan will help you to ask and have your answer to this question written down on paper.


This is where the magic of micro actions takes place. Once you know what your goal is, you need to break it down into repeatable daily, weekly and monthly actions. Remember that the magic of micro actions happens over time. To build something of substance, then, you need to be consistent.


Momentum is one of the biggest predictors of success in your personal life. When you are consistently taking micro actions, you are building momentum. To help you with this, your trusted advisor will help to review your personal financial plan at least annually. It is, however, also important for you to regularly check in with yourself, be it on a daily, weekly, or monthly basis, and to ensure you are on track to achieving your goals.


Reviewing of your personal financial plan will reveal your current position and how far you are from achieving your goals. Using this new information, you can act upon it or go back into planning mode.


Consistently taking micro actions over long periods of time, having a financial plan and regularly reviewing it with your trusted advisor, will help you to achieve your goals for your future.

Contact your trusted advisor today to help you with your personal financial plan.

Ryon Phernambucq
Para Planner

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