“A minute to learn… a lifetime to master.”Othello – The classic board game
Ready to invest? Set! And … wait! One more thing –
It is important to understand what your investment choices are and how different types of investments put your money to work, but it is equally important to understand yourself as an investor.
Below are a few steps to help you choose the best investment option:
- Review your financial needs and goals: It’s well worth taking the time to think about what you really want from your investments, your goals, or what you want to accomplish by investing. Remember in investments, there is no such thing as “one size fits all” approach. Make your selection as personal and close to what helps you meet your goals.
- Consider how long you need to invest to meet your goals: Once you get the plan on how many years you have to invest, ascertain how much money you can invest when you start, assume you can afford 3k per month, it would take you about 8 and half years to reach 500k with an average compounded return of 10% p.a. In addition, come up with a plan on how much you can increase to your investment every year and review your short term and long term investment strategy.
- Understand your risk tolerance: When you select any investment product, it’s vital to understand that all investments carry some level of risk and to what degree you can take the risk. The basic rule, is the higher the risk, the higher the return and vis versa. It is important to gauge yourself not only in terms of risk, but also the returns. For instance, if you are investing in stocks, what is the highest return you can gain before you trade off the investment and how long do you think you can hold?
Once you’ve devised a strategy for choosing investments appropriate for each of your investment goals, you’ve taken a major step toward meeting them. The journey doesn’t have to be lonely.
Get in touch with us on firstname.lastname@example.org for a personalized plan on how to commence your investment journey today!
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