The Wealth Advisory team pride themselves on their relationship with their clients and encourage them to look at their whole investment strategy, goals, criteria and current portfolio. As part of what they do, they wanted to share 8 tips which they feel are key for investors to pay attention to and follow before embarking on any new investments.
Below please find the list, in no specific order, as they are ALL relevant:
1. Due Diligence
Make sure you do sufficient research on the companies involved, the investment process, the best and worst case scenarios and how your funds will be returned to you. Familiarise yourself with what it is you are investing in and look for third party verification.
If you control the downside and diversify your holdings and investments, the upside will take care of itself. Make sure that your money is working its hardest for you, but don´t over expose yourself to too much risk or to too much in one investment. Likewise don´t be too conservative and hold too much in bank accounts or ISA´s generating low income. There should be a good split of cash in the bank, property, stocks and alternative investments.
3. Independent Advisors
Appoint a trusted advisor. Get to know them and the company they work for. Look for track records and history of success. Don´t be pushed into anything, advice should be purely that, advice, and you should be comfortable and make the final decision. Your advisor should look and advise on your portfolio as a whole and look to build on areas where your portfolio is particularly weak or under-performing.
Don´t be afraid of tax, if you are paying it on investments it means you are making money. However you should plan and look for ways to offset and reduce your tax bill through efficient tax investments and schemes, as well as using the tax free allocations available to all family members.
5. Capital Growth
In your portfolio, you should have some investments that are there for the specific purpose of capital growth, i.e. your investment capital will increase in value over a mid to long period of time. Prime examples of these sort of investments are real estate.
6. Income Generating
As well as capital growth, part of your portfolio should also be generating you a regular income, which you can either then use as part of your disposal income or use to reinvest in something else.
7. Investment Timeframes
Be aware of what the timeframes are for returns from you investments and plan to have a mixture of short, mid and long term investments in your portfolio.
8. Investment Amounts
Don´t over exposure yourself, only invest what you can afford to invest, however also making sure that you invest sufficient enough to make it worthwhile investing in the first place!
If you wish to have a free portfolio review or discuss anything mentioned above in more detail, please feel free to contact an advisor at The Wealth Advisory on +44 (0)20 7183 1400 or firstname.lastname@example.org