If you are thinking of dipping your toe into the investment waters, how do you get started? You’re likely to be wary of putting money into anything that could result in you losing your hard-earned cash, but with investing being part in addition to the science, there are never any guarantees. Investment can be quite a scary and confusing world, but if you have some spare capital that isn’t earning much in the way of interest in a savings account, the promise of better returns elsewhere can be very tempting.
Take professional advice
Your first step is to seek out a qualified financial advisor, who can show you a range of options, look at how much you have available to invest and make recommendations that will best suit your circumstances. Choose your advisor with care, checking their credentials and finding out what their other clients think of them. Check for any affiliations with the companies they are recommending. Independence is preferable because you can then be sure the advisor has your best interests at heart, but some advisors affiliate with particular companies because they know from experience that they offer the best service and returns, so consider the advisor’s motives before making a decision. A good advisor will spend time with you, assessing your attitude to risk, the rewards you are looking for, and any individual requirements such as using ethically sound investments.
You may have a longing to dabble in the stock market, or you could have some professional expertise that makes you favour the property option. On the other hand, you might have no clue as to where you want to invest your money. Either way, it does make the process more enjoyable if you have an interest in the market. If, for example, you are a petrol head, you would probably find investment in classic cars more stimulating and easier to get to grips with than futures or cryptocurrency. When you discuss the options, tell your financial advisor what interests you have, and if it’s viable, they can match you with a market that aligns with those interests.
Looking further afield
You may be more comfortable concentrating on developing your investments in the UK, for example purchasing properties for rental or holiday lets that you can see yourself before you buy. If you favour this approach, there are plenty of opportunities for all manner of UK investment options. On the other hand, you could investigate real estate investor leads in the United States. With the facilities provided by modern technology, you can have a virtual tour of developments you are interested in and maintain close contact with your representatives in the US. Or if you regularly holiday in Spain, you might feel comfortable with investing in Spanish villas. Don’t feel too restricted by geography; the quality of the investment and the way it fits into your life should be your chief concerns.
Taking the first steps into investing can feel risky and stressful, but if you take good advice, do your research and team your investments to your interests or areas of expertise, the odds are good that you will achieve some healthy returns.