The reality of investing today
We’ve seen some turbulent markets this year, with the repercussions of COVID having a significant impact. Generally speaking, markets have partially recovered but remain extremely volatile. Investing can seem too confusing, too risky, or ‘not for me’. Like everything, the more you know about it, the better informed your decisions are.
Why should we invest now?
Investment risk is, for example, putting money into an investment linked to the stock market where there’s the potential to lose some of your initial capital. The reason people do this is the potential for greater returns. With investing, the value can go down as well as up so you may not get back the amount you put in. There’s no need to think about any of this on your own – help is always at hand and we can talk to you about the risks in more detail. There are many articles which call themselves ‘investing for beginners’ but maybe a better place to start is to simply understand the ‘point’ of investing.
So why could it be a good idea?
Why should you consider it? It’s always best to have some money readily available in the bank in case of emergencies but investing gives you the opportunity to make your other money potentially grow and work harder.
‘But I’m not comfortable losing money!’
If you’re already thinking about the word ‘lose’ and thinking that you aren’t comfortable losing ‘any’ money – it’s worth considering that if you have excess money in savings, there’s a chance you’re already losing money because of inflation. Inflation, put simply, is the rising cost of goods you buy. If inflation is increasing it means you can buy less with your money and you are therefore ‘losing’ money every day.
So, what do you need to know if you are considering investing?
First things first. Not all investments are the same –some are higher risk, and some are lower risk. You’ll need to think about what type of risks you can take and are comfortable taking and what you could afford to lose. If you’d like to talk about this further, we can look at your needs, discuss the level of risk you are comfortable taking and balance that with the level of rewards you’re aiming for.
Once that is clear we can recommend the options that are right for you. This is one of the main reasons people use the services of an independent financial adviser, after all it’s our job to be the expert – not yours.
So how can we help you?
We have many different types of clients with different attitudes to investment risks. When you are ready for a conversation to help determine what’s right for you, give us a call or drop us an email. There is no cost for this discussion, no obligation on you and no pressure from us.