If you want to reach your financial goals, there is really no way around it — you have to invest. Investing as part of your financial plan is the best way to ensure you take the right steps to meet your long-term financial goals. But, where do you start? Here are our top tips for investing.
This does not constitute advice and advice should be sought in all instances before acting on it.
Investing Fundamentals
Get planning
First and foremost, you need to have a plan for investments. Not just what your goals will be, but you will need to think about the actual steps you need to take in order to get there. Are you investing with a specific goal in mind that’s time sensitive? Are you simply looking to grow your wealth?
Be sure to incorporate SMART goals in your planning and most of all, you should have a time horizon in mind, which is the amount of time you’re willing to wait for your investments to grow. This will affect your investing choices and how aggressive your strategy will be. The answers to planning questions will help you build your portfolio to meet your needs.
Start slow if needed
While it would be nice to have a large sum of money to invest straight away, if that’s not possible then drip-feeding money consistently into your investments each month is a great way to get started. Sticking to regular investments is a great strategy to mitigate risk associated with investing during turbulent financial times and helps regulate your portfolio’s performance over time.
It’s important to practice patience as an investor because it’s a long game. Don’t panic when things get rocky or make decisions based on short-term fluctuations. It can be hard not to get emotional when you’re worried about your money, but you need to stay disciplined and keep your eye on the prize. Don’t let emotions influence your decisions and have a plan for the times when the market isn’t performing as well as you hope. Instead, keep focused on your goals and stick to your plan.
Diversification is key
There’s a reason the saying, “Don’t put all your eggs in one basket” rings true for so many investors since diversifying is the key to success. Diversifying your portfolio is the key to weathering the storms that will inevitably come your way. If you spread your risk across different sectors and investments, and carefully allocate your assets, you will have a great investment mix with the potential for growth and you’ll reduce some of the risk associated with investing.
Regularly review your portfolio
An investment plan is not something you build once and then forget about as soon as it is implemented. You should be regularly reviewing your portfolio to ensure your investments are still in line with your goals and that you’re on track to meet them. Adjust strategy as your situations change by either ramping up or dialling back the aggressiveness. And be prepared to amend your allocations to get the best result.
Custom investing advice
Everyone’s goals are different, so everyone’s investment portfolio will be different too. For bespoke advice for your unique situation, we’re here to help. Contact the experts at Dental & Medical Financial Services to get started on your investment plan.