Stepping into the investment world is an important step in anyone’s life; having worked hard to accumulate your spare funds, you want to ensure you invest them in the right place. Knowing where to start and making that first step can sometimes be confusing with the wealth of worldwide investment options. The internet means investment options are available at the touch of a button within seconds, dealing in assets and regions throughout the world; you can manage yourself or choose someone to do it for you. We’ll use this short post to look at some practical steps you can take on your investing journey, whether you’re going to use an international investment company or decide to use one of the many share dealing apps to buy local shares.
Define Your Investing Journey
Before stepping into the investment world, establishing your investments’ purpose is essential. Are you looking for small quick wins, or are you in it for the long haul? Do you want to dabble in the stock market while only using disposable wealth, or are you looking to build a significant investment portfolio for your retirement? Defining how you want your money to work will often decide where or with whom you choose to invest.
The Type of Investments
The returns on your investments are delivered back to you in three fundamental ways these are –
- Capital growth – an increase in the price of shares you have purchased.
- Income – this is the payment of dividends issued to shareholders of companies.
- Combination – this is a mixture of both types of return.
An investor’s age is often a determiner in choosing an investment; a younger individual still earning may be in a position to invest in higher-risk shares as they still have earning potential. Older investors nearer to retirement might prefer lower-risk investments in funds with a higher income profile.
Do Your Homework
Before choosing your investment, use the available research tools; many online articles tell you what investment funds or companies the best options are. It’s also easy to check the past performance of specific shares or investment trusts over a particular time period; proper analysis is crucial, especially if you are planning to invest without the safety net or an investment manager. After you’ve narrowed your preferred shortlist, check out their website and confirm they meet all the requirements you set for your investments.
If you’re still unsure, you can always consult a professional advisor, but with the above steps, you can confidently take the plunge into the investment world. Good luck!
Finsbury Wealth’s team of experienced Financial Planners and Advisors can guide you through the complexities of financial planning and help you make informed decisions.