Your investments are far more than just a way to maintain your lifestyle. They’re a way to meet your goals as well. Although the year is well underway, you should still be looking for some sound investment solutions that make sense. As the experts in a number of financial planning areas, here are a few tips that we suggest every individual take into consideration.
Start sooner rather than later
The earlier you can start saving and investing, the sooner you’ll start to see the results. Compound interest is a wonderful thing and will help your investments grow. Although be warned, this is a long-term process, not a short-term one. As a result, some tend to withdraw their capital when they feel as if things haven’t happened fast enough for them. Market and economic fluctuations do have an impact on these things but time is a good way to ensure you invest in your future and reap the rewards. Five years or more is the average on which it takes to see growth, so do keep that in mind.
Don’t go it alone
Yes, it is possible to invest on your own without a professional but we don’t advise that. Compendium Insurance Brokers is also made up of a team of experienced financial advisors who specialise in investment portfolios. They can help you establish your financial goals and look at an investment plan that suits your current financial situation. They can also advise on which long-term allocations will yield the best results for you. Our advisors will also ensure that you make sound investment decisions that don’t jeopardise your future.
Make sure you’re not “gambling”
For those who don’t have a lot of investment knowledge, some decisions might be too risky to consider. It’s what makes the expertise of an advisor worth the expense. If you don’t have someone to guide you and give you all of the options, you might be risking your life savings or worse, your family’s financial freedom.
Understand where your money is and why it’s there
Too many people invest without fully knowing what, why, how and when. Again, this makes an expert on the matter an important part of investing smartly. When you understand all of the factors at play, you are less likely to feel anxious about it. You’ll also be more positive about the outcomes too. We suggest never investing in anything that you don’t completely understand. Anything that sounds like a fantastic deal might just be too good to be true.
Be aware of the tax implications
For those looking to invest offshore, an understanding of the tax implications is a must. If you are looking to start a tax-free savings account, a broker can help you get the ball rolling. A knowledge of your current tax bracket and the effects of additional income from interest will need to be considered as well. This is what makes a sound financial advisor one of your greatest assets.
There will be factors beyond your control
From economic fluctuations to market crashes and even changes in the exchange rate, there are many things that can’t be controlled. Rather pay attention to the entities where your investment is sitting. You should also know that in time, any negative impacts on your investment will recover. By keeping your investment portfolio diverse, you’re essentially splitting the risk. This means that you’re lessening the chance of something terrible happening to your capital.
Know all the Ts and Cs
Signing with an investment house will come with certain fees and tariffs. These are often a consulting fee and a small percentage of the interest made. This will vary between advisors and providers but you need to get these in writing before you agree to anything. Most advisors will run through the fees involved so that you understand exactly how those who are investing your money will make theirs. If you’re unhappy or if you think it is too high, definitely get a second opinion.
Want to invest in a better tomorrow? You know who to call
At COMPENDIUM, our experts help people just like you make smart investment decisions that make a big difference. If you’re looking to increase your portfolio, or if you would like to meet with one of our financial advisors, please contact us today.
087 285 4040