he risk has been identified by Imara Asset Management South Africa, a member of the Africa-wide Imara financial services group and an Illovo-based company with a growing base of retail investment clients.
Specifically, the challenge is "the lazy man's approach to financial plan implementation", says managing director Lara Warburton.
"It's a challenge no one talks about," she says. "Market movements hog the media limelight, along with speculation about interest rates and Emerging Market risk.
"But when it comes to the potential loss of thousands of rands a month in possible gains, most consumers should not blame Fed chairman Janet Yellen or the rand.
"In many cases, the likely culprit is the individual saver and investor who didn't get round to implementing a perfectly good plan to secure long-term growth and beat inflation.
"Procrastination is very human, but the lazy man's very leisurely approach to the implementation of investment strategy destroys untold billions in possible gains."
The issue was recently crystallised when a client delayed 10 months before confirming that a previously agreed strategy could now be set in motion.
A 22% potential equity market gain went unrealised because the plan stayed in limbo.
"If the delay had been caused by a family crisis or an emergency drain on cash resources it would be understandable," says Warburton. "But the client 'just never got round to it'.
"The loss was particularly glaring because the portfolio was extremely conservative, ignored the principles of prudent diversification and had been losing money to tax and inflation for many years.
"The opportunity to turn losses into sustainable gains without undue risk was clear. In this case, the potential upside ran to several thousand rands every month versus long, slow net losses in real terms."
Warburton says inertia like this is not uncommon in the consumer market for investment products.
Loss is often 'invisible' because the effects of inflation and tax on a safely invested principal are not immediately apparent. This encourages a tardy response.
Warburton adds: "Urgent corrective action can be the difference between a comfortable retirement and struggling to make ends meet. But it is important to distinguish between timely action and quickie tactical interventions in a bid to exploit market timing.
"No one can accurately time market movements. Putting a good plan into place sooner rather than later is different. It gives you more time in the market, and time - year after year for five or 10 years - is the secret to sustained, inflation-beating growth.
"Your money works harder for longer - and there's nothing lazy about that."
