TIPS FROM THE TOP:
FEMALE FINANCIAL EXPERTS SHOW YOU HOW TO MAKE THE MOST OF YOUR MONEY
MAKE A CASH FUND FIRST
‘When it comes to saving you need to have enough cash to cover around three to four months’ of expenses. Once you’ve got this you can start thinking about investing for the long-term in the stock market.’ Annabel Brodie-Smith, communications director, the Association of Investment Companies
START WHEN YOU’RE YOUNG
‘My number one tip is to start saving as soon as you start earning. It’s so easy to put off but, if I could go back to my early twenties, I would make sure that I put a little aside every month, instead of having that extra drink in the pub! And every time you get a pay rise increase the amount you invest before you get used to having the extra spending power.’ Juliet Schooling-Latter, research director at Fund Calibre
DON’T PUT ALL YOUR EGGS IN ONE BASKET
‘Embrace portfolio diversification – do not put all your assets in one investment class or instrument. You could choose a mixed or balanced fund that offers immediate diversification across equities, government bonds and property or you could choose three different funds, each specialising in one asset class.’
Sue Noffke, fund manager of Schroder Income Growth Fund
START SMALL
‘Saving as little as an extra £25 a month into your pension can make the world of difference. Someone earning £20,000 and saving an extra £25 a month into their pension on top of the minimum automatic enrolment contributions, from age of 23 to 68, could have an extra £28,000 in their pot at retirement assuming a
3 per cent annual return.’
Moira O’Neill, head of personal finance at Interactive Investor
PICK WHAT YOU KNOW
‘I invest in smaller companies and on a long-term horizon I find many retail investors can relate to the attractions of that; investing in companies who are on growth trajectories and will be the larger companies of tomorrow. Many of these companies are retail brands people will know from their day-to-day lives, and this can make investing in this space more interesting for them as they follow the expansion and successes.’
Abby Glennie, co-manager of Standard Life UK Smaller Companies Trust plc and co-manager of Aberdeen Smaller Companies Income Trust PLC
INVEST IN GROWING MARKETS
‘The ageing population is growing – for healthcare investments that means demand for effective therapies will continue to grow. A successful therapy for a disease that helps the quality of life of an elderly patient has a natural tailwind which bodes well for investment returns.’
Ailsa Craig, investment manager for International Biotechnology
Trust
KEEP LEARNING
‘Thorough research is essential to making informed decisions about companies and funds. Investing is a constant earning curve and this can only make you a better investor.’ Georgina Cooper, co-manager, Dunedin Income Growth Investment Trust
TALK TO THE NEXT GENERATION
‘Good money habits are set by the age of seven so ensure you talk to your daughters, and sons, about money and how to save and spend from a young age.’
Louise Hill, founder of children’s pre-paid card GoHenry