A Beginners Guide to Investment

A Beginners Guide to Investment

When you’re thinking about investing for the first time, there are various factors you’ll need to consider before you begin.

Firstly, you need to be clear why you’re investing and what your goals are. Your adviser will want to know what plans you have for the future.

These often include 

– Funding children’s education

– Repaying a mortgage

– Retiring at 55

The list can be a long one !

Armed with this information, your adviser can develop the right investment strategy for you. They can help you to evaluate your attitude to risk, which may alter depending on your experiences and stage of life.

For some people, the prospect of the value of their investment falling is very unsettling, while others are more comfortable with the inevitable ups and downs in stock markets at home and abroad, with the addition that exchange rate fluctuations may also affect fund values in sterling terms.

This year, as in most years, there will also be a number of risk factors at play.

For example 

– The UK has to weather the policy changes that may lie in the wake of the General Election

– In Europe there are continuing fears of deflation, the debt crisis in Greece and the conflict between Russia & Ukraine

– In the global economy, a question mark hangs over the pace of growth in China, whilst in the US the economic picture is much improved

As ever, there will be investment winners and losers amongst companies, industries and countries.

So, to counter some of these risks, and to take advantage of stocks and markets that look set to perform better, your adviser is likely to recommend investing across a range of sectors and stock markets to spread the risk. That way, a poorly-performing investment should not greatly damage your overall returns, and your money has greater opportunities for growth.

Taking the decision to invest money can seem like a major step, but with help and advice from a professional adviser, building up a portfolio of profitable investments isn’t an unrealistic ambition.

Come and speak to us at Logic Wealth Planning for guidance and advice.