1.    Have a plan
It is often said that those who fail to plan, plan to fail. If we all spent as much time planning our financial affairs as we do on planning our holidays, we would all be better off financially.

2.    Get independent professional advice
For your own protection also get it in writing.

3.    Never put all your eggs in one basket
Generally speaking, the more you spread your assets across the various standard asset types (shares, property, fixed interest and cash) and between a variety of fund managers, the more resilient your portfolio will be to serious damage.

4.    Understand the risks
It is often said that the higher the return, the higher the risk. The mistake a lot of people make is to confuse return for performance. Chasing high returns over the short term makes you a speculator. Prudent investors look for consistent returns over the long term. Short term fluctuations don’t trouble investors because it is the long term behavior of their chosen assets which they focus on.

5.    Don’t lock yourself in (or out)
This means investing your money in such a way that you can access it quickly if you need to. You must, at all times, be ready to quickly and cheaply rearrange your assets if necessary to either avoid a threat or take up an opportunity.

6.    Minimise tax
It is important that you are saving in a tax efficient way. Saving tax legitimately is one way where you can increase your returns without increasing the risk. While it is important that you take tax savings into account, this should not be the driver of your decisions.

9.    Keep good records
So many people lose tax deductions and other benefits to which they are entitled because they have not kept proper records. Yes, it is tedious but unless you (or your advisor) are keeping all the records it could cost you more than just inconvenience.

10.    Keep your fingers on the pulse
You should revisit your plan often to ensure that it is doing everything you expect it to and to ensure that your investments are performing appropriately. You should expect change, and change will need to be dealt with. Don’t fall into the trap of “setting and forgetting”.

11.    Do proper estate planning
It is vital to plan your estate. While it is important to have a will and update it regularly, proper estate planning ensures that your assets are structured in the most effective way. Together with this, make sure that you have sufficient life cover and insurance and that it is all clearly integrated into your estate.

12.    Pass the sleep test
If you are kept awake at night worrying about your investments then either you are taking too much risk or you are unsure of what you are doing.