In the light of our current economic climate it may assist you to take a look a the following guide to putting your money to work with the aim of taking a balanced view when considering how to invest your money, there is of course no substitute for getting the right independent financial advice form a qualified advisor.
1 Spread the risk always look to have a different spread of investments be it differing types of investments or different financial institutions to manage your portfolio for you.
2 Only use established financial institutions to manage your funds, established means old enough, well resourced large numbers of and amounts in their funds with track records in administration and of course performance.
3 Don't spread your investments too thinly your spread should be large enough for overall security but of course small enough to manage. The right spread varies from person to person though be careful you don't get swamped with paperwork that can lead to confusion.
4 Don't over-rely on household names Just because the company is well known or established does not mean the fund is the right one for you as we are all aware a lot of the larger names in banking are suffering as a result of this financial crisis.
5 Aim for a good overall rate of return on your portfolio, again this would be through a balanced spread of investments with a mix of risk-reward profiles with varying performances at varying times.
6 Don't exceed your risk ward ratio it is unwise to put all your funds into one investment that seems over generous in the rate of return as it could end up putting your capital at undue risk.
7 Don't underplay your risk-reward ratio it is also not sensible to have all your funds in something that seems very safe but does not offer much in the way of returns or goes down in "real" value.
8 Don't let inflation erode your capital It is important to keep real returns in mind as if you are drawing most of your gains on the capital then you can be assured that it is losing value every year. Quite simply after drawing income any money that is reinvested has to at least match inflation to hold its true value.
9 Be tax efficient Make sure all your tax allowances are used up where possible but still keep a balanced approach where possible.
10 Don't overpay tax efficiency it is not wise to have a tax-free or more tax efficient investment that pays less than the net returns of a taxable version.
11 Don't invest in over charged products Charges are sadly necessary but take care to link the fortunes of the investment company with your own also over charging reduces the growth by an unreasonable amount.
12 Don't overpay charges Poor or less tax efficient investments can often be brought cheaper but this can be a false economy i.e. if a fund with the right risk reward costs 1-2% more up front it could be a mistake to bypass it for what appears cheaper version up front as the overall gain could be with the more expensive charges provider.
Quite obviously when considering any type of investment particularly in today's turbulent financial climate you would be well advised to seek the services of an appropriate financial advisor who can take full account of your circumstances and needs and recommend the correct investment to suit your long-term aims.
http://www.ownbuild.co.uk/independent-financial-advice.htm
1 Spread the risk always look to have a different spread of investments be it differing types of investments or different financial institutions to manage your portfolio for you.
2 Only use established financial institutions to manage your funds, established means old enough, well resourced large numbers of and amounts in their funds with track records in administration and of course performance.
3 Don't spread your investments too thinly your spread should be large enough for overall security but of course small enough to manage. The right spread varies from person to person though be careful you don't get swamped with paperwork that can lead to confusion.
4 Don't over-rely on household names Just because the company is well known or established does not mean the fund is the right one for you as we are all aware a lot of the larger names in banking are suffering as a result of this financial crisis.
5 Aim for a good overall rate of return on your portfolio, again this would be through a balanced spread of investments with a mix of risk-reward profiles with varying performances at varying times.
6 Don't exceed your risk ward ratio it is unwise to put all your funds into one investment that seems over generous in the rate of return as it could end up putting your capital at undue risk.
7 Don't underplay your risk-reward ratio it is also not sensible to have all your funds in something that seems very safe but does not offer much in the way of returns or goes down in "real" value.
8 Don't let inflation erode your capital It is important to keep real returns in mind as if you are drawing most of your gains on the capital then you can be assured that it is losing value every year. Quite simply after drawing income any money that is reinvested has to at least match inflation to hold its true value.
9 Be tax efficient Make sure all your tax allowances are used up where possible but still keep a balanced approach where possible.
10 Don't overpay tax efficiency it is not wise to have a tax-free or more tax efficient investment that pays less than the net returns of a taxable version.
11 Don't invest in over charged products Charges are sadly necessary but take care to link the fortunes of the investment company with your own also over charging reduces the growth by an unreasonable amount.
12 Don't overpay charges Poor or less tax efficient investments can often be brought cheaper but this can be a false economy i.e. if a fund with the right risk reward costs 1-2% more up front it could be a mistake to bypass it for what appears cheaper version up front as the overall gain could be with the more expensive charges provider.
Quite obviously when considering any type of investment particularly in today's turbulent financial climate you would be well advised to seek the services of an appropriate financial advisor who can take full account of your circumstances and needs and recommend the correct investment to suit your long-term aims.
http://www.ownbuild.co.uk/independent-financial-advice.htm
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