Property or the stock market? Silver or Gold? Short term or long term? Investing is never a case of putting your money into one asset class and this time next year you become a millionaire. Not only do you need to think about where to invest your money, but for how long and how much. If you’re new to investing there are ways to make more informed decisions. Let’s look at how you can avoid the pitfalls of taking on too much risk or making emotional decisions about your money.
Not all investments are equal and not all investments are equal to different people. If you are in your early 30’s and looking to invest you may be able to tolerate more of an appetite for risk, however with that age comes inexperience. Investing in ‘low risk’ stocks in the stock market may be right for someone older who is looking to simple preserve the wealth they have accumulated. The point here is that you need to obtain advice and work with someone, especially if investing is completely foreign to you, to understand which investment type is right for your personal circumstances. Being new to investing and not knowing how each investment would relate to you personally is not a good way to start.
There can be unforeseen events such as changes in the economy that impact an investment. Having a financial adviser at your side to know what the impact of such an event might be could prove invaluable. If there is a recession, a boom, or anything in between, it is crucial to know how this can affect your investment and what to action to then take. A good financial adviser will explain this to you in a simple way and offer support, at a time that might otherwise be unpredictable. Unpredictability and investing do not mix well.
If you want to get fit it would be wise to speak to a personal trainer. If you wanted to learn how to play the piano, work with a piano teacher. That would be the smart thing to do, and not to just visit (You can find information on the internet to support nearly every argument, rightly or wrongly!). Your money and personal finance is no different. To get the correct information you need to source objective information, as well as an expert in that industry. The complexities of investing might not seem as daunting when a financial adviser with years of experience and a detailed understanding explains it in a way that considers your personal circumstances.
In conclusion, and in short, if you don’t know what you are doing when it comes to investing and still press ahead then beware: you are embarking on a journey of glorified gambling. Seek an expert who can explain what the best course of action for you might be and advise you on all the options.
If you would like to discuss any aspect of personal investment, or any aspect of personal financial advice please get in touch with us on 01302 244 977.
Publish date: 10th October 2018