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A Virgin Investor

As the end of a tax is looming, it's time to invest spare money, often through share ISAs, avoiding income tax or capital gains tax on the investment returns. By investing in the stock market, you get the potential to generate a better return than cash in bank. Are these words, making you feel like a virgin investor?

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Curiosity that didn’t kill the cat 

If you are curious about investing, then you will be potentially growing your future wealth. The first decision is whether you want income, capital growth or a combination of both:

  • Investing for income could be a good short-term strategy if you are nearing or in retirement.
  • Investing for growth could be good if you have more time and want to grow the value fo your investments. 

Golden Investing Rules:

Before investing, build up spare cash to pay for 3-6 months of living expenses. This creates a financial cushion in case of a money emergency; allowing the untouched investments to carry on growing.

  1. The greater return, the more risk you will usually have to accept.
  2. Avoid having all your eggs in one basket by diversifying, i.e., invest in different companies, industries and regions.
  3. Investment is for at least 5-years. If this is too long, then leave the money in a savings account. 
  4. Review your investment portfolio every 3 months, as you may be willing to take more risk.
  5. The golden tip is do not panic when the investments go down, as don't need the money. Over time your investments time will often rise.

I have been investing for over 30 years and had my share of stock market booms, crashes, and value corrections. However, I was not tempted to sell or buy shares just because everyone else was. I have invested through the dot com bubble, the credit crunch, and the coronavirus panic. Each time share values tumbled and each time the shares bounced back. My strength is not having all my wealth in one basket, by invest in different assets, companies, industries and countries.

Visit at www.insurewithmax.com  or call the UK call centre 0333 323 0098 for more information.

Important: There are no guarantees when you invest in the stock market, and your money can go up as well as down in value.

Sources:

https://www.moneysavingexpert.com/savings/investment-beginners/

https://www.hsbc.co.uk/wealth/articles/beginners-guide-to-investing/

 

Date: 18 January 2021 by max robinson