These days you don’t have to be a ‘Gordon Gekko’ or ‘Jordan Belfort’ to start investing. Opportunities are everywhere and in the age of the internet, you can open an investment account and buy shares in some of the biggest companies in the world in just a few minutes. But even though investing your money has become as simple (in principle) as buying your Nan’s Christmas present off eBay or Amazon – that doesn’t mean it’s suitable for everyone.
Key to choosing whether you should save or invest is your attitude to risk. One of the great things about investing is that it can deliver an unbeatable return on your investment when compared to savings accounts… especially at the current rates. The downside however, is that there is always a possibility that you can come away with less than you started with and if you cannot afford for that to happen, or you’re simply not willing to accept the risk of that happening – investing is probably not for you.
Are you in it for the long term?
Another key consideration when choosing whether to save or invest is the length of time you’re willing to let your money be “out of arms reach”. You might have dreams of investing for just a few weeks, making the perfect choices and then sailing off into the sunset with a boat load of cash – but typically investments are made for the mid-long term (5 years +). Those that make the big money over a short amount of time are experienced, long-time traders living and breathing investments, with hundreds of thousands of pounds to play with on a daily basis… and even for them, there’s no guarantee.
So with that in mind, if you are going to invest for the long term – it’s important not to let yourself “get spooked” by the market. Markets are by nature, volatile beasts and reacting to the short term ups and downs rather than buckling down for the long term will likely see you lose a sizeable part of your initial investment.
All in all, investing can be a fantastic way of turning a relatively modest pot of money into something really worthwhile if done correctly. The best place to start is by talking to a Financial Adviser who can fully explain the risks involved and provide you with a wide range of investment products from across the market which are suitable for your needs.
What’s more, through an ongoing service agreement, a Financial Adviser can add further value by actively managing your investments and advising you when to make changes or invest more money.
If you would like to learn more about investing, why not speak to our team today on 020 7562 5858 or email us at email@example.com. We’d love to hear from you.
Credius – Financial Advisers, London