Investing in your future isn’t as daunting as you think
With both the global and local environments remaining uncertain, it is even more important to create as much stability as possible in areas you can control.
Below are some resolutions to keep in mind for another successful year of investing in 2018.
1. Understand that financial solutions need to be part of a holistic plan
We are often tempted to believe that finding that one silver bullet will finally solve our financial puzzle. The reality is that in an uncertain world, silver bullets are few and far between, and simple solutions are more likely rooted in optimism than reality. The aim is to find investment solutions that fit holistically into your plan and that will be able to stand the test of time.
2. Remember that financial solutions are not absolute
In a complex world, we should expect our solutions to be nuanced and, most importantly, to change over time. Reviewing your portfolio regularly to ensure that it still meets your requirements is not only good financial planning practice, it is also an absolute necessity in a global village where events around the world can directly affect your financial situation.
3. Risk is not always what it appears to be
When it comes to investments, understanding, quantifying and managing risk is not negotiable and is a necessary first step in the process of achieving long-term success. Avoiding an investment like equities, for example, because this asset class is volatile in the short-term, can be a very poor decision from a long-term perspective.
When it comes to managing risk, always make sure you consider your time-horizon and ask how this investment will behave as part of a balanced portfolio.
4. There is no such thing as an impossible goal
Sometimes, our financial challenges seem so unattainable, we give up even before we begin. Saving for retirement may be a case in point. The reality is that achieving any plan, no matter how grandiose or unlikely it may seem, starts with quantifying how much you’ll need and by when. Often, seemingly impossible targets just mean we have to try harder and work harder.
5. Commit to seeing the bigger picture
It is often difficult to avoid being caught up in the emotions of the markets. However, emotions are a poor guide to making sound decisions. What you need is a clear head as well as some thorough research.
When the world seems to be an increasingly uncertain place, having support on your side can really make all the difference to the investment outcomes you achieve. A financial adviser can help you navigate the investment landscape by providing a sounding board and helping you to view your decisions objectively.
What do you think is the most important factors to take into account when investing your money? Let us know by posting on our Facebook page.
