Where should I invest my money?
If this sounds like you then you're reading the right article. Let me first caveat this article my saving that I am not a professional investment advisor. I am simply someone who has worked in finance for a number of years and has noticed a few trends that may be beneficial to anyone who isn't sure how to handle their money. The following points should not be misconstrued as financial advice. They are simply the ramblings of my own thoughts.
There comes a time in most sensible people's lives when they realise that they're going to have to start to take some responsibility in terms of their own finances. They may have saved up a reasonable pot, say a few thousand pounds, but they don't know what to do with it.
They've heard that property is a good investment but then realise that they probably don't have enough. They've heard that investing in the stock market is a good idea but then they've no idea what shares to buy. Many come to the conclusion that they should instead invest in funds or give their money over to a financial advisor to invest on their behalf.
As I've written in the past, I am not the biggest fan of financial advisors and fund managers. My argument is pretty simple: 80% of fund managers can't beat the market average! This means that there is a significant number of individuals paying for the services of an investment expert who cannot even bear the average. It makes you wonder what on earth they're paying for?
I would recommend that no one will have your best interest to heart any more than yourself. Only you have your financial interests truly aligned with you so only you should be making investment decisions for yourself.
Understandably you might be thinking that you don't have the knowledge to make smart investment decisions. You don't have the luxury of a finance background. To you I say two things: firstly, read up and educate yourself on all financial matters. Read books and learn the principles of investing. Secondly, invest in index funds. 80% of fund managers can't beat the market average...so be the market average and you'll beat 80% of fund managers without even understand your investments.
Index funds not only give you broad diversification across a whole market of stocks and shares, but they are also incredibly cheap as they don't require paying a fund manager to look after them.
Given a long enough time horizon the majority of stock markets grow. Ride the growth and your investments will grow without the need to pay for an investment expert.
Don't just sit on your savings and allow them to earn a pittance in interest. Get your money out there and working for you. Remember the multimillionaireroad way: earn->save->invest->reinvest the cash flow->repeat.
Information on this site is not appropriate for the purposes of making a decision for carrying out a transaction or trade nor does it provide any form of advice (investment, tax or legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments, or products.
Always seek advice of a competent financial advisor with any questions you may have regarding a financial matter