INVESTMENT CONSIDERATIONS
WITH SOME CAREFUL INVESTMENT PLANNING AND AN UNDERSTANDING OF HOW VARIOUS ASSET CLASSES WORK TOGETHER, A PROPERLY DIVERSIFIED PORTFOLIO PROVIDES INVESTORS WITH AN EFFECTIVE TOOL FOR REDUCING RISK AND VOLATILITY WITHOUT NECESSARILY GIVING UP RETURNS.
Identifying your investment objectives is a lifelong process. A total wealth solution has no value unless it is properly implemented through an appropriate investment strategy.
If you’ve got a sufficient amount of money in your cash savings account – enough to cover you for at least six months – and you want to see your money grow over the long term, then you should consider investing some of it. Investing is a lifelong process, and the sooner you start, the better off you may be in the long run.
Regardless of the financial stage of life you are in, you will need to consider what your investment objectives are, how long you have to pursue each objective and how comfortable you are with risk.
CURRENT FINANCES AND FUTURE GOALS
The right savings or investments for you will depend on how happy you are taking risks and on your current finances and future goals. Investing is different to simply saving money, as both your potential returns and losses are greater. If you’re retiring in the next one to two years, for example, it might not be the right time to put all of your savings into a high-risk investment. You may be better off choosing something like a cash account or bonds that will protect the bulk of your money, while putting just a small sum into a more growth focused option such as shares.
CHOOSING YOUR SAVINGS AND INVESTMENTS
You may be a few months away from putting down a deposit on your first property purchase. In this case, you might be considering cash or term deposits. You might also choose a more conservative investment that keeps your savings safe in the short term. On the other hand, if you have just recently started working and saving, you may be happy to invest a larger sum of your money into a higher-risk investment with higher potential returns, knowing you won’t need to access it in the immediate future.
DIFFERENT WAYS OF INVESTING
You may have a share portfolio currently, inherited, or built up as a result of shares from your employer or indeed you may have your own “flutter pot”. A “flutter pot” would be a portfolio of shares that you watch and decide to buy and sell yourself.
When considering investing a larger sum, it may be prudent to take formal financial advice to ensure that you consider the right type of structure (which range from ISA’s – Trusts and Investment Bonds to Enterprise Investment Schemes). Also as diversification is important considering pooled investments may be appropriate.
SERVICE STYLES
As independent financial advisers we can provide recommendations on both the structures and the underlying investments to hold. Alternatively, and dependent on the amount you are considering investing, we may suggest considering appointing a Discretionary Fund Manager (DFM) who provide an additional level of investment expertise. This is a bespoke service often considered by our clients.