Important Investment Tips
People can get worried about investment- it’s only fair because it’s their money on the line. However while there are no guarantees there are ways of finding the right investments for you and below are ten tips to help you invest your money.
1. Stay the course
Exact timing of investments is very hard- it’s rare that people will pick the perfect time to buy or sell. Check the flow of the investment rather than looking for the big rise or fall.
2. Save for retirement
It may sound obvious but the sooner you do it the better- there are a number of options available and it is worth having a fund kept aside.
3. Have a range of investments
Most advisors will recommend having a broad range of investments- whether it’s stocks, bonds, ISAs or savings accounts it helps to spread your money a bit further.
4. How risky are you?
Inevitably some investments are bigger gambles than others- you have to decide what your position is regarding taking risks with your money.
5. Stay informed
Look at current trends, political events, budgetary announcements and so forth. All of these things could potentially affect your investment. It is also advisable to review your portfolio on a regular basis- times change and what was a blue chip company 20 years ago may not necessarily be the case now!
6. Take advantage
You can use up to £15,000 tax free. Furthermore you don’t pay capital gains on income earned or interest paid on investments made through ISAs plus the flat rate on dividends is less than other taxpayers (10% as opposed to 32.5%!)
7. Don’t get greedy
If a stock goes up by more than 50% sell it. It is unlikely that an investment will double within a few months so it is better to look for something for the longer term.
8. Don’t grab on impulse
Some people like to think they can go by “gut instinct”- this is not recommended! It is better to think carefully before making an investment.
9. Look beyond the obvious
Sometimes a company may be forgotten about or undervalued- adding them to your portfolio may be a risk but alongside other investments could pay off!
10. Get professional advice
This is crucial- you need to be sure that the people offering you advice have got your interests at heart. Be wary of anyone pressing you into investments that will give them a high commission rate or anyone who doesn’t seem to understand your personal investment goals.
At Larcomes Financial Services we believe we can offer the best services to our customers. It is about having the resources but also being able to talk with a client about what they want and finding the best ways to help them achieve that.
If you would like to know more about what we do and to find out how we can help you please contact us and we will be happy to discuss your financial plans and find the ideal investments for you.