Rand-cost averaging an effective investment strategy

"Is now a good time to invest?" This is probably the most asked question of financial planning professionals.

- Johann Rossouw

The truth is, we simply do not know, as all of us missed out on the opportunity to graduate with a crystal ball.

However, the father of value investing, Benjamin Graham, once said: "In the financial markets, hindsight is forever 20/20, but foresight is legally blind. "And thus, for most investors, market timing is a practical and emotional impossibility."

But if market timing is a fool's errand, how can the person on the street build long-term wealth without falling victim to extreme market volatility and black swan events?

A possible answer, as it turns out, is a straightforward yet effective solution called rand-cost averaging.

Investing a lump sum of money at once can be risky, as you are essentially making a big bet on the market's performance.