How To Get The Most Out Of Your Investments
Many UK residents spend the majority of their working days saving to ensure they receive a good quality of life when retirement comes around. Although this is a very positive move (as it means they shouldn’t have to live solely on a state pension of £110 per week), those with a keen eye for investments and the will to better themselves even further could improve their financial outlook significantly by simply opting to use their money wisely at the right time.
There are many websites and blogs you could visit to get advice about investments. Personally, I always check the articles on Money Street Smart to guarantee I don’t miss out on any fantastic opportunities, as they tend to be simple and to the point (something I like). Still, as you’re here, I’ll spend the next few paragraphs highlighting some of the top tips I’ve learnt over the years for getting the most out of any investment. Hopefully this will help you out a little and help you to avoid making any schoolboy errors.
Diversify Your Options
Whether you realise it yet or not, most experts would agree that lots of small investments in wide-ranging markets are generally going much safer than having all your money tied up in one place. Variety is most definitely the secret to reducing the levels of risk involved, and having your fingers in as many pies as possible will give you a much higher success rate. Think of it as a game of bingo; the more tickets you have, the more likely you are to win.
Spread The Maturity Time
It’s vitally important that you protect yourself adequately from market fluctuations, and the best way of doing this is to spread the maturity dates of your investments over a long and varied time period. This will allow you much more flexibility and should help you to avoid missing out on any profitable new opportunities that may present themselves.
Consider Tax Advantages
In most cases, an investor will be liable to pay taxes on three types of income; interest, dividends and capital gains. Each is subject to a different tax system, which is why it’s more than possible to lower your tax bill significantly if you make new investments at the right time – and everyone likes the idea of that, right?
Persevere Through The Hard Times
Most investments produce more fruitful results over a lengthy period. This means you should avoid panicking when the markets fall, and instead consider investing even more heavily when prices are so low. You will find brilliant opportunities during this time for little money, and as Yaz said in her 1998 hit single; the only way is up.
Keep A Close Eye On Everything
This might be easier for some people than others depending on the amount of investments you make. Even so, ensuring you go over your investment portfolio at regular intervals and reassess your options is essential. For anyone with only a handful, this should be done on a monthly basis, whilst those with hundreds of different interests should probably do this yearly.
I hope that has made some small difference to the way you look at investments and the techniques you’ll utilise in the future.
Catch you next time!
Category: Investing
