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Investing for beginners: Key points


Investing is for everyone – there I said it!


Misconceptions abound; investing is not just for the wealthy, the adventurous or the ones 'in the know' – the markets are open to anyone wanting, willing and able to invest and hopefully to start growing their money pot. Ideally, you should discuss all your options with your Independent Financial Adviser this way, they will ensure that your on the right path.


1. Clear your debt - there is no point investing if you owe money. Investing and debt make for a sorry duo!

2. Beware of savings accounts – with inflation currently at 3.1% and may go higher, you will not find saving accounts offering anything above this, thus leading to the erosion of your cash reserves.

3. Make it a habit – however much or little you want to invest or are able to afford, the key is to do so regularly, such as monthly contributions

4. Alternatively, lump sum may be the right option for you, that bonus or inheritance may get you started on an investment journey. Or it may top up your existing holdings.


5. Get a professional risk profile. Don't rely on any online tests and quizzes, only your adviser will be able to closely match the right investment to your risk profile, assessing your attitude to risk, capacity for loss and investing experience.


6. Don't go it alone – take a professional advice, this applies irrespective of your investment experience. Advisers are equipped with the right knowledge and tools to help you in your investment journey.

7. Decide on your objectives – what is it you are trying to achieve by investing? Is it a single goal, maybe saving for a deposit on a house or maybe several smaller ones? This will determine your investment strategy.


8. Track your time line and how long do you want to stay in the market. Are you prepared to ride out the underlying volatility? Do you have an end-point in mind?

9. What do you want to invest in and in what fashion – active or passive? Are issues of sustainability important to you? Do you prefer to avoid large corporations? Are you comfortable investing in emerging markets?


10. Be patient – most investments are designed for at least a medium term, ideally long term to very long term. Ask yourself, how important is it to you that you are able to access your investments at a short notice?


11. Remember that investments can go up and down and you may not get back your initial capital. Always seek Independent Financial Advice to understand your options – we are here to help you!


Silvia Johnson BSc(Hons) DipPFS EFA CertCII (MP) is a Director & Independent Financial Adviser at Royale Thames Wealth Ltd.


https://www.royalthameswealth.co.uk

silvia@royalthameswealth.co.uk

020 8720 7249 / 07908 109 741


Royale Thames Wealth Ltd is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by Financial Conduct Authority number 460421. The value of your investment may go up as well as down and the value is not guaranteed. Past performance is not a guarantee of future performance. Wills and Estate Planning are not regulated by the FCA.