Is this the year your going to Jump forward and Invest some of your hard earned, saved cash?
It can seem like complicated thing to get into, but we can assure you, you don’t need to be a financial expert or to have won the lotto to invest! With a decent understanding of how investing works, you can do it in 2022!
Here are our Top 10 Tips to investing and investing better in 2022;
1. Know Why ?
Consider this – What are your big Life Goals you want to support in the future?
Have you a wedding to plan for, saving for your child’s education or do you want to plan for your retirement now or have big retirement ambitions for the future ? Maybe you want to save for your dream holiday home, or you always wanted to take six months out and escape the rat race and travel the world! Or maybe you just want your money to keep its value! There are always reasons to invest your hard earned cash – but be disciplined from the get go and stay focused on your reasons why.
2. Assess Your Attitude to Risk
Before you decide to invest, consider how you would feel if your investment lost some of its value in the short term. Investing is usually for the medium to long-term so your investment has time to increase in value.
Usually, the greater return you want from your investments, the greater the risk you have to take. At Allied Financial we will discuss the level of risk you are prepared to accept and what it will mean to the returns you can expect. And advise and support you accordingly.
3. Save Money and Know How Much to Invest
Savings are essential in the first place to invest. Your options when investing with a broker are typically to either invest a lump sum or invest a regular amount each month. What Allied Financial advises is to assess if your money is working hard enough for you and knowing when to do something about it. Be clear about what you can afford to invest and how often, that’s the secret ingredient! And remember to be honest with yourself and decide;
- How much of this money might I need back at short notice?
- What is my exit strategy?
Being honest about these questions can help you assess what investment will work for you and your financial circumstances.
4. Spend Time Thinking About Your Financial Future
How much time do you spend thinking about your finances (especially making provisions for the future)? How do you want to provide for your future, your children’s future or your retirement?? There is no doubt about the amount of information out there advising about your investment options and how to plan for your financial future. Investing your money soundly and having a strategy for your future finances can help to eliminate a large chunk of stress in life. Lets be honest your finances are a very stressful topic. Spending some time reading about and researching your investment options is time well spent. You are literally doing that right now by reading this, and equipping yourself with the right knowledge, but take the next step and reach out to Allied Financial.
5. Consider How “Active” You Want to Be
We know and have seen people who enjoy investing. With handy apps on your phone that allow you to check the performance of your investments on a minute-by-minute basis, investing can become an addictive pastime. You may get a real thrill following the news and predicting how the markets will respond or following the stock prices of a hot tip you’ve heard, in which case being actively involved in your portfolio and investment choices will be important to you. However, you may want to invest your money in a passive fund, and sit back, relax and think about it again in the future when you’re looking to cash in. Or perhaps you could manage a bit of both. Knowing how involved you want to be in your investments is an important conversation to have with your advisor.
6. Familiarise Yourself With Investment Terminology
Do you know the difference between open and closed investment structures?
Do you know what a bull and a bear market are?
It’s not that you need to become an investment expert in order to venture into the world of investing, but acquainting yourself with the language of investing can help demystify it and increase your confidence and understanding. There are some great investment guides available, Get in touch and we will forward you out a FREE guide to investing.
7. Spread Your Investments – Diversify!
Investors are always talking about diversifying, but this is more than just a saying; it is an approach to investing that reflects many people’s attitudes towards risk. For example, would you consider putting all your eggs in one basket? Spreading your investments across a range of asset classes can be advantageous especially if you want the security of knowing your money isn’t dependent on the performance of one asset class, business sector, or country. At Allied Financial we advise that by diversifying your portfolio, you have a good choice for those who prefer a smoother investment ride over the long term.
8. Keep it Simple
As we say, Investing doesn’t have to be complicated or terribly risky, though it can be easy to be tempted outside of your levels of competence and comfort by the potential of high returns. Know the limits of your knowledge and competence and try to remain within them. You can always set aside a small portion of your portfolio for “dabbling” purposes – that way you can satisfy those urges to be bolder and more adventurous without risking your serious money. Remember, a good investment is one you can understand. We will make the investment process a lot more simple for you.
9. Think About Long-Term Gain Over Short-Term Reward
Investing isn’t for everyone as some people don’t like the uncertainty or potential losses that stock market fluctuations can bring, and instead choose to deal with their bank manager about savings accounts, which is perfectly fine.
If, however, you are taking a longer-term view, we can look carefully at what you want your money to do for you and invest it in such a way that mitigates the impact of challenges such as inflation, market risk, tax demands, unexpected emergencies and care requirements. With the confidence that comes from having your money invested strategically to preserve your wealth, you and your family can focus on achieving your life goals and dreams.
10. Remember That You Are In Control
While the fluctuations of the stock market and housing market being beyond the control of most of us, it is important to remember that as a private investor you can assemble your portfolio however you want.
YOU have control over where you YOU want to invest, and when YOU invest – even if exercising this control means handing over the burden of responsibility and “active” management to a trusted advisor. You are in control to make sensible decisions about your financial future.
Want to learn more about investing? Or maybe you’re ready now?
Give us a call on 096 60044, book a complimentary chat, with our experienced team or clicking this link for even more investment information.