AMID all the economic turmoil that has engulfed the UK and the world over the past few years, many people have naturally become more wary about where they are investing their money, says Stephen Jones, chief executive of Cooper Parry Wealth Strategies.
Recent events such as the Japanese earthquake and the European financial bailouts, have continued to challenge investors recently. However, investors still have plenty of options from which they can choose to grow their money.
All decisions for potential investors should be formed in the context of a clearly defined plan which combines strategic financial planning, tax advice and a robust investment process.
Individuals need to ensure that they have sufficient cash contingency reserves to meet short-term needs, while any long-term investment portfolio should be able to yield hard cash if needed.
More importantly, an investor must think of investments as being for the long term. Short-term opportunities may and do exist, but are much more of a gamble. Making rash, emotional decisions, "buying high" and "selling low" all have the potential to seriously damage wealth.
Think carefully about two areas you can control. Cost – each pound of unnecessary investment charges is a pound you lose in investment return. Diversification – don't put all your eggs in one basket.
The level of equity exposure in the portfolio should reflect the investors need and tolerance for risk based on a well structured long-term financial plan.
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