Blog Article

Our guide to investing

Our guide to investing

Date: 24 April 2024 | By: cosgrove

Investing can be an effective way to help you achieve your goals, our guide to investing takes you through what you need to know.

When you invest, your money is used to buy different types of assets, such as stocks and shares (equities), bonds, property, and commodities such as gold and other natural resources. These assets
are packaged together into funds and portfolios offered to investors by investment managers. Your financial planner’s role is to understand what you want to achieve, to recommend a suitable portfolio to get you there, and to be by your side through every step of the journey.

Investing is a long-term commitment
It’s important to understand that investing is a long-term commitment (typically 5-10 years or longer).
Markets and the value of your investment can fluctuate in the short term, but focusing on the long term and remaining invested means that your money has the opportunity to recover in value and make
a return if markets go up.

The most successful investors generally make a long-term investment plan, stick to it, and don’t try to time the market or make knee-jerk reactions. For most styles of investing the returns will not be guaranteed and will be affected by market conditions.

Investing vs keeping money in cash
Certain or near-certain returns are normally offered by cash accounts available from the bank or building society.  If your plans require a greater return than cash can offer, then investing can be an effective way to help you achieve them but you also need to be comfortable with the risks involved, which we discuss in Our guide to investing.

Why invest?
You may invest for a number of reasons:

  • Saving for a specific purpose
  • Building a pot of money for personal use at a later date
  • To help offset the impact of inflation, ensuring that you maintain a good standard of living

Before you invest
Before you invest, we recommend that you address three key areas:

  • You have settled any debt
  • You have adequate emergency funds
  • You have adequate financial protection to cover common risks such as being off work due to sickness or accident

For more information please browse Our guide to investing and get in touch for help and advice.


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