As individuals, we all have diverse visions for our future – some may be considering the forthcoming five years, while others may be focused on the next two decades. Regardless of your aspirations, ensuring that your investments are well positioned and diligently contribute toward achieving your desired outcome is crucial. Ultimately, making the most suitable choice for you and your objectives matters most.

Investing is necessary if you want to grow your money over time – the spending power of cash tends to go backwards because returns on it aren’t enough to keep up with inflation.

Frequent mistakes can accumulate and potentially diminish your portfolio’s worth. Perhaps you need to accurately assess the time frame required for your assets to grow, or your investment goals might not align with your current portfolio approach.

WHAT DO I NEED TO CONSIDER?
  • Inflation risk: Keeping all your money in a savings account can cause its value to erode due to inflation. Historically, investing in the stock market has been a more consistent way to combat inflation.
  • Emergency fund: Set aside an emergency fund, typically six months or more, to cover unexpected expenses without resorting to loans or selling devalued investments.
  • Tax matters: Utilise tax-efficient wrappers like Individual Savings Accounts (ISAs) or pensions to boost your finances and minimise tax liabilities. Spread risk: Spread your investments across different asset classes, sectors and  regions to minimise losses when one type of investment underperforms.
  • Five years or more: Invest for at least five years with a long-term perspective, allowing your money to recover from market downturns and grow in value.
  • Don’t panic: Avoid panic-selling during market drops, as this could crystallise losses and cause you to miss out on potential gains when the market recovers.
  • A loss is a loss: Don’t hold on to underperforming stocks in hopes of recovery; reinvest in better prospects for long-term gains. Stay focused: Don’t copy others’ investment choices mindlessly, as they may not suit your circumstances.
  • Expert advice: Investing is complex and requires time, research and knowledge. Consider seeking specialist advice.
  • Learn from errors: Reflect on past investment decisions, both successful and unsuccessful, to avoid repeating mistakes in the future.
READY FOR A CONVERSATION ABOUT TAILOR-MADE INVESTMENT OPTIONS FOR YOU?

Obtaining professional financial advice will ensure you invest according to your individual needs and goals and make informed decisions. For a conversation about tailor-made investment options that suit your requirements, please contact us.

Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.

The Financial Conduct Authority (FCA) does not regulate tax advice, estate planning, trusts or will writing.

The content in this article is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice.

Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.

Thresholds, percentage rates and tax legislation may change in subsequent finance acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.

Pareto Financial Planning Limited is authorised and regulated by the Financial Conduct Authority (FCA).