Investment tips for Greater Financial Success

Want to make more of your money. Here are some great investment tips for greater financial success. 

Start investing early

When it comes to investing, starting early is one of the smartest moves. It gives you a big advantage over someone who starts investing later on in life. If you are in a position to do so and have some extra money lying around, consider investing as soon as you can. Taking the plunge early allows you to make the most of your investment. Essentially, it gives you more time and room to grow your investment portfolio and maximize your potential profits. Read more here: The City of London Investment Trust plc. The sooner you start the sooner your money starts to grow and the higher the returns will be. So, why not start investing today?

You don’t need a lot of money to start investing

One of the biggest misconceptions about investing is that it is reserved for the wealthy only. While this might have been the case several years back, the introduction of online investment platforms like Wealthify has made investing possible for everyone to get into the world of investing. With such platforms, you can invest as much or as little as you are willing to risk, even if it’s $1. What’s more, provided that you make frequent contributions to your investment plan and stick with it for several years, you can establish a sizeable nest egg starting with a small amount of money. For example, if you choose to invest £30 each month for, let’s 25 years, you will end up with about £14,488!

Determine what you want to invest in

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When you get into the world of investing, you will realize that there are different types of investments available to build your portfolio. It is, therefore, crucial to determine the right type of investment for you before you start investing. You need to carefully think about the investment types to include in your portfolio. This will mostly depend on the amount of risk you are willing to take. For instance, if you are cautious and want to minimize risks and potential losses, you can consider much safer investments like government and corporate bonds. These types of investments aren’t typically subject to large fluctuations. You can even consider property development, well known for high returns and securing property development finance means that you don’t have to have the capital to invest. However, if you are a big fan taking risks and aren’t bothered by market movements, you can choose high-risk investments such as shares. You can also think about combining both types of investments in your portfolio. 

Diversify your portfolio

As they say, never put all your eggs in one basket. When it comes to investing, you should always be looking for ways to mitigate your risks. And the best way to limit your losses is to diversify your portfolio. This means spreading your money across different vehicles, industries, companies, and other categories. Failing to diversify (for example, investing all your money in one or two companies) exposes your assets to a greater risk of losses should bad news come from the company. On the other hand, when you have your money spread across various financial markets, you’ll have a more secure portfolio. 

Check out ISAs

There are many perks that come with living in the UK. While the weather is definitely not one of them, there is something to smile about when it comes to your taxes. Typically, you are required to pay taxes on the profits you make from investments. However, in 1999, it became possible to avoid having to pay these taxes on the gains you make. This is by way of Stocks and Shares ISAs. In this type of account, you can invest in the stock markets only that you won’t have to pay the Government any taxes on the profits you make. Thus, in this way, you get to retain most of your money.  You can choose to put up to £20,000 (subject to change) each tax year in your Stocks and Shares ISA – this will be your ISA allowance usable till 5th April midnight. Thus, you should ensure that you use this “gift” from the government before the deadline elapses.

Disclaimer: This content does not necessarily represent the views of IWB.

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