Asking questions that will shape your future
Just about everybody wants to become financially secure and independent – so why do so few people get there? One thing is for certain: it very rarely ‘just happens’.
Creating a total wealth solution
Don’t forget, unwritten goals are just wishes
If you do not know where you are going on your life journey, how will you know when you arrive? This is very true about the importance of having financial goals. You need to set financial goals to help you make wise financial decisions, and also as a reward for your efforts. Goals should be clear, concise, detailed and written down. Remember, an unwritten goal is just a wish.
Visualise your future
Reaching a state of complete financial wellbeing
Financial wellbeing ultimately comes from achieving financial security and independence. When you’ve reached a state of financial wellbeing, you’ve got to a point where you have a sufficient level of income for your lifestyle needs, enough capital to give you peace of mind and the knowledge that whatever happens you, your family and business are fully protected.
Establish financial and lifestyle goals
Gathering information and developing your strategy
Evaluating your financial and lifestyle goals in greater depth is essential if you want to get a picture of your future responsibilities and aspirations.
Review your needs and goals
Take the time to think about what you really want from your investments
You need to consider what you really want from your investments. Knowing yourself, your needs and financial and lifestyle goals, and your appetite for risk is a good start.
Protecting wealth
Identifying your investment objectives is a lifelong process
A total wealth solution has no value unless it is properly implemented through an appropriate investment strategy. If you’ve got a sufficient amount of money in your cash savings account – enough to cover you for at least six months – and you want to see your money grow over the long term, then you should consider investing some of it.
Understanding investment risk
Informed decisions to improve your chances of achieving your financial goals
If you want to plan for your financial future, it helps to understand risk. If you understand the risks associated with investing and you know how much risk you are comfortable taking, you can make informed decisions and improve your chances of achieving your goals.
Maintaining a diversified portfolio
Spreading risk among different kinds of investments
When you start investing, or even if you are a sophisticated investor, one of the most important tools available is diversification. Whether the market is bullish or bearish, maintaining a diversified portfolio is essential to any long-term investment strategy.
Pooled Investment funds
Investing in different things, with different strategies
Pooled investment funds – also known as ‘collective investment schemes’ – are a way of combining sums of money from many people into a large fund spread across many investments and managed by a professional fund manager.
With-profits funds
Fewer ups and downs than investing directly in shares
If you save regularly or invest a lump sum using a life insurance policy, you might choose to invest in a with-profits fund. These aim to give you a return linked to the stock market but with fewer ups and downs than investing directly in shares. However, they are complex and are not as popular a form of investing as they used to be.