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5 Savvy Investment Tips

5 Savvy Investment Tips

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1.    Get to know the fundamentals 

When it comes to investing, keeping things simple and easy to understand is key; try and get some grasp of the basics of investing.

Understand the level of risk and how this interacts with the potential for your money to grow.  Evaluate your own goals and attitude to risk, and consider which investment options will best serve you.

Remember that just because everyone else is investing in something, it doesn’t necessarily mean that it is the best investment for you.

2.    Buy right and sit tight

Time is one of the most important factors for any investment.  Warren Buffet once said don’t even think about investing for ten minutes if you’re not willing to see it through for the long term. 

One reason for this is growth on investments can fluctuate a lot in the short-term but tends to be much more stable over the longer-term.  Another is the power of compounding – growth on your growth.  The more time you give your investment, the more potential growth it achieves.

So buy right and sit tight; time is of the essence.

3.    Make a move from deposits

You should always have some emergency money, but don’t be under the impression that putting all your money in a deposit account is your only option.

In fact, by keeping your money in a deposit account you will lose value on your money where low interest rates don’t keep pace with inflation.

Hold on to some emergency cash, for sure, but consider alternatives to deposits for your longer-term goals.  There are other options for your money which might suit you better.

4.    Don’t put all your eggs in one basket

One of the most basic, but no less savvy strategies for investors everywhere is that of ‘diversification’.  This refers to having your money invested in a number of different types of assets, rather than relying on the performance of a single asset type.

This means that if there is a fall or sudden drop in any one asset, all of your investment won’t fall by the same amount.  This helps give more stable growth.

So make sure you have some cash deposits for your short-term expenses, compliment it with some investments for your longer-term goals and let your investments be a mix of a diversified range of assets and asset classes such as property, shares, bonds, commodities and alternatives.

5.    Get professional financial advice 

Investments can be complicated and there is a wide range of investment options out there, everything from managed funds to stamp collecting!  A professional financial advisor will be able to help you identify your goals, develop a financial plan, and find the investment options and mix that best suit your needs.

 

Artice taken from https://www.irishlife.ie/investments/investments-hub/5-savvy-investment-tips