Make your investments shrewdly

It all comes down to pacing and spreading your investments properly.

10:34 07 July 2014

In any type of investment, it is very important for you to diversify your investment portfolio, and this is done by ensuring you identify all your goals as early as possible and know your tolerance for volatility. Most people of course invest for a better retirement period. Therefore, when you will retire and the style you retire with will thus be a great determinant of your investment plans.

 

Investing is accompanied by risk tolerance and the first account you should consider before you go into investment is your tolerance for volatility. The greatest investment risk today is doing nothing, and you will definitely miss out on very good returns. Achieving the right mix of investments will be a great deal for anyone who wants to have good returns before retirement years. Get the right balance between stocks, bonds and money market. However, never put all your investments in one account, you could end up losing everything in case a nasty market dip occurred.

 

Similarly, find out exactly what you own and how much funds are in your hands. Most people don’t know exactly how much they own. It is good to know exactly what your investment company does with your money. You might find that some are said to be low risk companies, yet they tend to put some of the cash in high-risk investments to boost their returns.

 

Get a professional advisor and he will assist you realise what you really own. This is because he or she is in a better position to handle most funds. He will also assist you break these funds into smaller components so that you can know what percent is actually in low risk investment and which exactly is in high risk investments and which is in long term investments versus short term investments. After all, to reap maximum returns, you have got to spread and pace your investments. Shrewdly!