If you are new to investing there’s a lot to learn. And if you’re an old hand, there’s still a lot to learn! We’re not in a position to give investment advice as it’s a highly regulated business but we can share our experiences and help you to consider the different ways investing might work for you.
We can’t stress enough that a) you must do your homework: research, research, research and b) only invest if you feel you understand the risks involved and it’s money you can afford to invest. Some investments are more solid than others but all have an element of risk attached – or they wouldn’t be so rewarding or exciting!
From buying physical assets such as precious metals and property through to more intangible investments such as crypto currency and shares, there are many opportunities to think about. As we say, find out what you can, read, talk to people you know and trust, balance the risk with the reward and always start small.
It’s a good idea to start investing on a smaller scale to see how things work. You can monitor your stake and watch how the markets respond over time. When your confidence and experience grows, you could consider investing more – but only as you are comfortable – everyone has a different risk tolerance. It’s always best to look at investments cautiously and with a longer term view.
The general view of stock market investments is to look at 3-5 years minimum to allow for fluctuations to level out. There are some basic terms you must understand too – search online and equip yourself with the knowledge you need.
Understand why you are investing. What’s your time-frame? Are you looking for a quick return or for a longer term project? It’s key to know what is realistic and what to expect (as far as you can).
Our take-aways are:
- get as much knowledge and understanding as you can
- start small
- spread your investments across different asset classes – build a healthy portfolio
- monitor your chosen investments closely
- recognise your own risk tolerance
- scan opportunities shrewdly
- weigh up potential outcomes
- don’t invest money you can’t afford to lose/reduce