What do you want from your in­vest­ments?

Leek Post & Times - - BUSINESS WEEKLY - Ad­vice col­umn

THROUGH­OUT our lives, we will have many dif­fer­ent life­style and fi­nan­cial goals that we would like to achieve. Al­though we all have dif­fer­ent goals, there are some key goals that we’ll have in com­mon, es­pe­cially when it comes to re­tire­ment.

What do you want from your in­vest­ments? Sup­ple­ment­ing your in­come? Build­ing your re­tire­ment pot?

It’s es­sen­tial we tai­lor your in­vest­ments to suit your goals. To un­der­stand your per­sonal in­vest­ing goals, you need to take into ac­count all the needs and pref­er­ences that may shape your fi­nan­cial life.

When set­ting goals, you are forced to think hard about the var­i­ous life as­pects you care about and how much they will cost in fu­ture.

This helps to put your ex­pec­ta­tions in per­spec­tive, so that you can align your sav­ings with fu­ture re­quire­ments. It also pre­vents you from un­der­es­ti­mat­ing the amount of money you re­quire for the fu­ture or be­ing mis­led about your sav­ings abil­ity.

The sim­ple act of writ­ing your goals down and shar­ing them with oth­ers in­creases your chances of achiev­ing them. What are your ob­jec­tives for the money you’re in­vest­ing? Do you want to ac­cu­mu­late money for a longer-term goal, such as a child’s or grand­child’s univer­sity ed­u­ca­tion, or per­haps a com­fort­able re­tire­ment for your­self? You might even have sev­eral goals, and each of those goals may re­quire dif­fer­ent in­vest­ment ap­proaches to achieve them. Be­fore you de­cide to in­vest your hard-earned money, it is im­por­tant to fully un­der­stand why you are in­vest­ing and what you want to achieve.

What­ever your per­sonal in­vest­ment goals may be, it is im­por­tant to con­sider the time hori­zon at the out­set, as this will im­pact the type of in­vest­ments you should con­sider to help achieve your goals. It also makes sense to re­view your goals with us at reg­u­lar in­ter­vals to ac­count for any changes in your per­sonal cir­cum­stances.

In­vest­ment strate­gies should of­ten in­clude a com­bi­na­tion of var­i­ous ap­proaches in or­der to ob­tain a bal­anced ap­proach to risk and re­turn. But the real mea­sure of risk is whether or not you reach your fi­nan­cial goals. Main­tain­ing a bal­anced ap­proach is usu­ally key to the chances of achiev­ing your in­vest­ment goals, while bear­ing in mind that at some point you will want ac­cess to your money.

When you know ex­actly what the money is for, the time you have to achieve those goals and your tol­er­ance for risk, you can con­struct your in­vest­ment port­fo­lio ac­cord­ingly. Oliver Mel­lor Dip PFS, BA (Hons)

In­for­ma­tion based on our cur­rent un­der­stand­ing of tax­a­tion leg­is­la­tion and reg­u­la­tions. Any lev­els and bases of, and re­liefs from, tax­a­tion are sub­ject to change. Tax treat­ment is based on cir­cum­stances and may be sub­ject to change in the fu­ture.

Al­though en­deav­ours have been made to pro­vide ac­cu­rate and timely in­for­ma­tion, we can­not guar­an­tee that such in­for­ma­tion is ac­cu­rate as of the date it is re­ceived or that it will con­tinue.

No in­di­vid­ual or com­pany should act upon such in­for­ma­tion with­out re­ceiv­ing ap­pro­pri­ate pro­fes­sional ad­vice after a thor­ough re­view of their par­tic­u­lar sit­u­a­tion.

We can­not ac­cept re­spon­si­bil­ity for any loss as a re­sult of acts or omis­sions.

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