Lots of people put money into deposit accounts, stocks and shares, property and various mutual funds and call it investing, but I have news for you, that’s not what investing is.
As many found out to their determent back in 2008 the value of holdings plummeted in all asset classes and returns were obliterated, some never to recover. The biggest reason for the severity of losses for individuals was the narrow structure of their investment i.e. lack of diversification.
However having a properly structured investment portfolio is a different matter altogether and should be sought out by all, no matter how much or little disposable income you have.
A well-structured invest portfolio will allow you to:
- Look at how much risk you can or should take.
- Decide how long you should leave your funds invested.
- Judge how much you can afford to lose if things go wrong.
- Have an idea of how much you can expect to make if things go really well.
- Diversify your fund across a range of asset classes and fund managers to reduce your risk.
These are some of the crucial considerations you need to make before handing over your hard earned cash to anyone who is offering you investment advice.
Hopefully we all have learned something from the recent past, potential investors need to identify their tolerance levels, get good advice, be comfortable before making a commitment and then…invest.
At Metis Ireland our process is to: listen, recommend, implement and review.
It’s a plan for the life of your investment, a plan specific to you and a plan that gives you the best chance of success at a level of risk that you are comfortable with. Now that’s investing.