At times like these, the fear of losing money can be a powerful deterrent to investing. However, in reality, most of us have been investors throughout our lives – if you own your home, for instance, you’ve invested in the property market; if you own jewellery you’re effectively investing in precious metals. With inflation factors at play, some may consider holding too much cash as a risky move at present.
While it’s easy to understand potential unease in the current climate, it’s also important to appreciate markets have always experienced short-term bouts of volatility. The key to managing this risk is by diversifying your assets. By holding a balanced portfolio with a mix of equities, bonds, property and cash, investors can effectively mitigate risk by ensuring ‘all their eggs are not in one basket.’ By building safety nets as well as opportunities for returns into your plans you will end up with an optimum mix of investment, protection and saving instruments, allocated according to your circumstances, objectives and risk tolerance.
Recent research1 also vividly highlights the importance of investing in relation to retirement planning. The study found that less than 40% of the population is currently on track to receive a moderate level of income in retirement. In other words, if most people don’t take action now, they face living on only the most basic standard in later years.
One way to ensure your financial plans stay on track is by arranging regular reviews. This will help to identify any areas of concern and ensure you avoid any untoward financial surprises at a later stage in life. With meticulous planning and careful consideration, we can assess and develop a robust plan to align and flex with your changing requirements and priorities. We’ll help you spring into action and ensure you can look forward to a sound financial future.