Investing – putting your money to work
You’ve already worked hard for your money. By investing it you can get it working hard for you. But how and where should you invest?
The investment world is a big and sometimes confusing place. There are thousands of different products out there, from shares to commodities to property, bonds, currencies and even artworks. But what they all offer are opportunities for your money to grow.
Shares/Equities – shares in companies that are traded on stock markets.
Property – offices, shops, factories, warehouses and sometimes houses and apartments.
Bonds/Gilts – a guaranteed ‘IOU’ issued by a government or company to be repaid with interest.
Managed Funds – usually a mix of assets such as shares, bonds and properties which are managed by professional experts. Generally seen as the easiest way to invest.
Tracker Investments – investments which follow the fortunes of a particular asset index, such as the ISEQ, Dow Jones or ECB interest rate.
Commodities – oil, gas, gold, copper and zinc are some of the main commodities traded on exchange markets.
Investing is not without its risks, but it’s reassuring to know that there are now products which offer both solid investment potential and a good degree of capital security, so that at least you won’t lose what you put in.
Know your goals
If you’re looking to invest you need to think about what your investment goals are: a once-in-a-lifetime holiday, a new car, a second home or perhaps the chance to take early retirement. It is these goals which will influence the investments you choose, both in terms of your investment life-span and the level of risk you are prepared to bear in order to achieve your goal.
No matter what your investment goal is, or what level of risk you’re happy with, there are plenty of products and solutions out there from a wide range of providers. You can even begin investing with a small amount on a regular or lump sum basis and go on to invest more as you grow in confidence.
Golden rules
When it comes to any form of investment there are a few golden rules:
- Diversify – make sure that the money you invest is spread across a range of funds and asset classes. This applies equally to direct investment in, say, shares or property and to money invested on your behalf by fund managers.
- Savings – keep some cash in a deposit account to which you have easy access. This can cover unplanned financial events and means you won’t need to draw on your investments before they mature.
- Information – the world of investments can be complex and often fast-moving. Make sure that your investment provider keeps you up-to-date with how your investment is performing and review your investments on a regular basis.
Together we can build an investment plan for you
At CFS we can help you define your investment goals, determine a balance of risk and reward you’re happy with, and then talk you through your investment options. In this way we can build an investment plan that will help you achieve your financial goals, whatever they may be. We’ll also continue to advise you of changing market conditions and opportunities as they arise.