Achieving your goals by weighing the potential risks alongside the prospective returns

Successful investing involves making choices that meet your unique needs today and your financial goals for the future. A well-defined investment strategy is one of the cornerstones of a successful financial life. Investing is about building wealth slowly rather than getting rich overnight. We at Hutt Professional have financial advisers with many years of experience who could offer you the independent financial advice you need to help set those goals, but to ensure you reach them as well.

It’s important to have a solid, dependable core to your portfolio and to consider an equity income strategy where reinvesting dividends compounds your returns over time.

While investment techniques vary widely, all good strategies are built on the same foundation. The principles for investing over the long term require holding a portfolio of investments and weighing the potential risks alongside the prospective returns.

Taking a long-term view
An investor who puts money aside over the long term for the proverbial rainy day is far more likely to achieve their goals than someone looking to ‘time the market’ in search of a quick profit.

The longer you invest, the greater the potential effect of compound performance on the original value of your investment. Many investors will be familiar with the term ‘compounding’ from owning cash savings accounts. The term refers to the process whereby interest on your money is added to the original principal amount and, in turn, earns interest. Over time, compounding can make a significant difference.

Your investments can also benefit from compounding in a similar way if you reinvest any income you receive, although you should remember that the value of stock market investments will fluctuate, causing prices to fall as well as rise, and you may not get back the original amount you invested.

Understanding your investments
While a well-constructed portfolio should generate a healthy return for investors, the opposite is also true. It’s easy to incur permanent losses by putting money into an asset that behaves in an unexpected way. Investors should always set aside time to try and understand what it is they want to hold.

If you would like to seek independent financial advice on investments you currently have or an investment you wish to have but want to ensure they are a successful investment, we at Hutt Professional have financial advisers who have may years of experience and who are highly qualified who would be more than happy to help . If you are located in Leamington Spa or surrounding areas please do not hesitate to contact us.


Source:  12/04/2016