Everyone has their own individual financial goals.
Whether these be purchasing a property, preparing for retirement, or even saving for a holiday, we all have ambitions that need financing.
Investments can be a fantastic way to make your money work harder, helping you to achieve your financial goals. But, that said, the world of investments can seem like a bit of a daunting place, especially to the uninitiated.
Here at Burton and Fisher we’re experienced providers of investment advice in Lancaster. We offer independent advice on a broad array of different investment products and can help you to find the right solution for your money.
Want to know more? Then to help get you started, we’ve put together this brief guide to some key factors you should think about before making an investment.
What Are Your Goals?
At the outset, it’s important to consider what your financial goals are, so that you know exactly what it is you’re looking to achieve by investing.
For example, what are your reasons for investing? Are you looking to grow your savings? Or provide an income? How much profit are you looking to make? These are just a few important questions worth asking yourself before making an investment.
By taking the time to consider questions such as these before you commit to an investment, you can help ensure that the investments you choose are the right option for you.
It always pays to do a little forward planning, so think about the length of the investment you are looking to make too.
The time frame of your investment will likely depend on how soon you would like to achieve your goals.
By establishing how long you require to achieve your financials aims, you can gain a clearer idea of the type of investment that might be right for you.
Attitude to Risk
No investment is risk free. Hence, another important factor to take into consideration is your attitude to risk.
Everybody has a different attitude to risk. Whilst some people are happy to live with risk if it means there’s a chance of earning a higher return in the end, others are more risk averse.
Your attitude to risk can vary according to a variety of factors, including your personal circumstances and even your personality.
As a general rule, the bigger the risk, the greater the potential returns – or losses – you stand to make.
Understanding the risks associated with investments and the amount of risk you are willing to take can have a significant impact both on the type, and length of the investment you choose to make, and of course your financial goals too.
For example, if you’re looking to make a significant profit over a short period of time, you may have to invest in a riskier option to achieve the returns you are looking for. That said, if the potential risks are too much, you may want to reconsider your goals.
It’s up to you to decide what level of risk you are comfortable with, but it’s worth bearing in mind that you should never invest more than you can afford to lose.
If you are considering making an investment, then it always pays to seek expert financial advice from a qualified financial advisor. As experienced financial advisors, here at Burton and Fisher we offer completely independent investment advice and can help you to find the best solution for your money.
If you would like to know more about our services, then please don’t hesitate to get in contact with a member of our friendly team today by giving us a call on 01524 416511.
This article should not be regarded as an offer or solicitation to conduct investment business as defined by the Financial Services and Markets Act 2000. Past performance of investments is not necessarily indicative of future performance. The value of investments may fall as well as rise and the income from investments may fluctuate and is not guaranteed. Clients may not recover the amount invested. The investments mentioned in this article are not suitable for all types of investors. Investment advice should always be sought from a qualified investment adviser before any investment is made.