SOLUTIONS

The first stage on your journey to investing wisely involves doing some advance thinking:

 

  • Know your goals and risk tolerance - your goals, timing and your appetite for risk will determine your choice of investment

  • Understand risk and return - risk is the chance an investment won't give you the outcomes you hope for   

Once you've identified your goals and risk tolerance:

 

  • Develop an investing plan - create a realistic plan that meets your needs and spreads your assets

  • Choose your investments - choose investments that fit your plan

  • Listen to investment warnings - be wary of claims made in seminars or about sports betting and trading software or 'get rich quick' offers

Keeping your investment strategy on the rails:

 

  • Keep track of your investments - keep an eye on your investments rather than adopting a 'set and forget' approach

  • Problems with your investments - market and economic conditions can change rapidly, but a knee-jerk reaction can often make things worse therefore, any decision you make should be based on your long-term investment goals. If your investments still fit your goals and risk tolerance, then you would need a good reason to change strategy but, if your investments do not fit your goals and risk tolerance, you have a tough decision and may want an adviser to assist you with this decision.

  • An investment portfolio is a bit like a garden…if you look after it, you'll get the most out of it. Many things may be beyond your control but if you pay attention you should be able to reap the benefits.