If you’re new to investing it’s important to learn the golden rules first. Doran Financial Services have collated their top rules for those starting out in investing.
Ensure you have a safety net
Having a bit of financial insurance is a great idea for two important reasons. If the worst should happen and you lose all your invested money then you’ll have something to fall back on because not everything will really be gone. Secondly, having a safety net will allow you to be a bolder investor since you’re not risking everything you have.
An ideal safety net is between three and six months’ worth of expenses. This fund should be kept in something conservative and liquid to be at the ready if you need it. It’s also a great time to review your insurance coverage such as disability, life, trauma and even redundancy.
Do your research and familiarise yourself with common investment products and terms and how they work. If any terms or products are unclear or confusing, arrange a time to meeting with a financial adviser and go armed with the questions you’d like answered. Experienced financial advisers are adept at explaining financial terms and investments in a way that everyone can easily understand.
Understand the market
Whether you are considering property investments or investing on the stock exchange, it’s important to understand the markets and the current financial climate that may affect any investments you make. Invest only in those areas which you understand.
There’s a lot to be said for old adage ‘don’t put all your eggs in one basket’. Diversifying your investments will allow you to take advantage of investments of differing lengths of time, different potential yields while also spreading the risk.
Invest for the long run
Investments should be viewed as a long-term plan. While it’s true you can make short-term investments it’s more prudent to set long term financial goals and investments to achieve those. This is particularly true when it comes to investing in property.
Without the right qualifications and experience getting started in investing can be overwhelming and quite risky. It’s always advisable to seek the professional advice of a financial planner or financial adviser to ensure that you are make the right investment in light of your personal situation, your financial goals and the current marketplace.
Once you get started in investing it’s a fantastic idea to re-examine both your investment goals and strategies on a regular basis. While markets and the financial climate changes so too does your personal circumstances and possibly even the goals you want to achieve. When you work with a financial adviser like Doran Financial Services, you receive regular, professional evaluations to ensure your investments are achieving and you’re still heading in the right direction to reach financial freedom.
If you are looking at getting on board with investing contact the experienced team at Doran Financial Services.